Atlanta millennials want to buy a house, just can’t afford to, survey says (low income, rentals)

[jsvh]

Originally Posted by ATL Golfer

Breaking news.

People who can't afford house, want to buy house.

Was the less shocking survey result going to be, "People who can't afford house, don't care to buy house".

Breaking News:

Baby Boomers pass laws that artificially limit supply of housing supply. Housing prices rise.

Baby Boomers convince themselves they are blameless and are entitled to forcing these limits on density because they were there first. They are sure that younger generation can't afford decent housing because they spend too much money on their morning coffee and should be forced to live 1.5 hours out of the city instead of being allowed to build more affordable housing in their urban neighbors' back yard.

[arjay57]

Originally Posted by jsvh

Breaking News:

Baby Boomers pass laws that artificially limit supply of housing supply. Housing prices rise.

Baby Boomers convince themselves they are blameless and are entitled to forcing these limits on density because they were there first. They are sure that younger generation can't afford decent housing because they spend too much money on their morning coffee and should be forced to live 1.5 hours out of the city instead of being allowed to build more affordable housing in their urban neighbors' back yard.

I'd consider letting you build in my backyard if you'll meet my price, jsvh.

Don't forget that many of us older intowners live in housing that was built a generation or two before we came along. Like the generations before and after us, we had to work our way up to where we live now. Sadly, they didn't give you a house simply because you were born during the Baby Boom.

It's also worth remembering that living intown is not any particular advantage for a lot of people. Millions prefer to live in the suburbs because it is closer to their work, schools, shopping and other activities.

[fourthwarden]

Originally Posted by arjay57

I'd consider letting you build in my backyard if you'll meet my price, jsvh.

Why would he be building in your backyard? He just doesn't want to be kept from building in his back yard, and he doesn't want your neighbors from being able to build in their back yards.

Don't forget that many of us older intowners live in housing that was built a generation or two before we came along. Like the generations before and after us, we had to work our way up to where we live now. Sadly, they didn't give you a house simply because you were born during the Baby Boom.

No one is asking to be given a home, just that artificial barriers to development be removed to help more people be able to afford a home.
That said, don't ignore the differences in situations between now and when boomers were buying their first homes. Lower comparative prices, less debt, lower education costs, a higher real minimum wage, etc.

It's also worth remembering that living intown is not any particular advantage for a lot of people. Millions prefer to live in the suburbs because it is closer to their work, schools, shopping and other activities.

Yet there is still a huge disparity between those who want to live intown, and the supply of intown housing. It may not be millions, but there are a ton of people who are kept out of the market by both a lack of supply and artificially high prices.

[bhammaster]

Originally Posted by samiwas1

I make six figures, and much of the housing in anything remotely acceptable (I'm not living in West End or an hour outside of town) is out of reach, at least realistically. Going to a trade school will barely afford you a meager apartment. Do you really think that going to a trade school is the answer to affording a house??

You want way too much if you make 6 figures and can't afford anything "acceptable" that is not in the hood or in the exurbs. That salary would qualify you for something well over 300k.

[arjay57]

Originally Posted by fourthwarden

No one is asking to be given a home, just that artificial barriers to development be removed to help more people be able to afford a home.

Hopefully more builders will get cracking on projects like these. No zoing changes necessary.

Likewise with all the areas around transit stations that have been designatd for TOD.

https://atlanta.curbed.com/2017/6/20...mechanicsville

https://www.summechcdc.com/

And don't overlook the many opportunities for affordable intown housing in the existing housing stock.

[atltechdude]

Originally Posted by bhammaster

You want way too much if you make 6 figures and can't afford anything "acceptable" that is not in the hood or in the exurbs. That salary would qualify you for something well over 300k.

Agreed, and this is mentality I call BS on.

If you make 6 figures (meaning a 300k+ house is easily affordable) then you have zero excuses to state that you cannot afford to buy a house.

The simple fact is that in this scenario what is really going on is that you have not made obtaining a house a priority so other lifestyle factors have risen up to claim the income that would be going there if it was.

[jhtrico1850]

https://www.zillow.com/mortgage-calc...affordability/

According to Zillow, 100K can afford $515K. The old adage of 3x income for a house doesn't apply in a 4% interest rate world.

[st3mpy]

Originally Posted by jhtrico1850

https://www.zillow.com/mortgage-calc...affordability/

According to Zillow, 100K can afford $515K. The old adage of 3x income for a house doesn't apply in a 4% interest rate world.

Did we learn nothing in 2008?

[samiwas1]

Originally Posted by bhammaster

You want way too much if you make 6 figures and can't afford anything "acceptable" that is not in the hood or in the exurbs. That salary would qualify you for something well over 300k.

Originally Posted by atltechdude

Agreed, and this is mentality I call BS on.

If you make 6 figures (meaning a 300k+ house is easily affordable) then you have zero excuses to state that you cannot afford to buy a house.

I didn't say I can't afford a house. We are pre-looking and budgeting around $300k. But, note that I said "realistically" and that there are areas I won't live in. I currently live in a 2/2 town home with 1-car garage and a bonus room. It's simply not enough. I don't want a 1300 square foot house. It won't work for us. I don't want to live outside of town. I don't want to live in West End or pretty much anywhere south of I20. Also, a lot of my income is self-employment and rental income, subject to much higher taxes than a standard salary. I don't take home nearly as much. I also spent a lot of money on a special needs child and work in an industry that could disappear tomorrow. It's not all cut and dry.

But note what I DID say: much of it in areas that don't suck is out of reach, and I make over 100k. Now, pay attention to the actual point: most people aren't making even half that. That makes much more of it out of their reach.

The simple fact is that in this scenario what is really going on is that you have not made obtaining a house a priority so other lifestyle factors have risen up to claim the income that would be going there if it was.

I own a house and have for over 11.5 years. I hold no debt other than that and my wife's car. I have approximately 8 months of living expenses in liquid savings in addition to another 3-5 years worth in investments. But, I appreciate your concern for my apparent financial shenanigans.

Originally Posted by jhtrico1850

https://www.zillow.com/mortgage-calc...affordability/

According to Zillow, 100K can afford $515K. The old adage of 3x income for a house doesn't apply in a 4% interest rate world.

Sure... I could buy a $515k house. IF I decided that I needed no other money for anything else, nor if I wanted to save a penny. That is absolutely foolish advice.

[aslowdodge]

Originally Posted by samiwas1

I didn't say I can't afford a house. We are pre-looking and budgeting around $300k. But, note that I said "realistically" and that there are areas I won't live in. I currently live in a 2/2 town home with 1-car garage and a bonus room. It's simply not enough. I don't want a 1300 square foot house. It won't work for us. I don't want to live outside of town. I don't want to live in West End or pretty much anywhere south of I20. Also, a lot of my income is self-employment and rental income, subject to much higher taxes than a standard salary. I don't take home nearly as much. I also spent a lot of money on a special needs child and work in an industry that could disappear tomorrow. It's not all cut and dry.

But note what I DID say: much of it in areas that don't suck is out of reach, and I make over 100k. Now, pay attention to the actual point: most people aren't making even half that. That makes much more of it out of their reach.



I own a house and have for over 11.5 years. I hold no debt other than that and my wife's car. I have approximately 8 months of living expenses in liquid savings in addition to another 3-5 years worth in investments. But, I appreciate your concern for my apparent financial shenanigans.





Sure... I could buy a $515k house. IF I decided that I needed no other money for anything else, nor if I wanted to save a penny. That is absolutely foolish advice.

I am curious as to why your rental income is taxed higher. It's unearned income is it not?
If so doesn't it escape ss and Medicare taxes? Also isn't their a depreciation write off too?