Define "affordable" in terms of housing in Austin: (Hutto: for sale, rentals)

[Rynldsbr]

According to Trulia.com a 3bdr home averages $378,000 in Austin. What is your definition of an affordable single family house?

Affordable is <$189,000 (50% of current average)
Affordable is <$283,500 (75% of current average)
Affordable is <$378,000 (100% of current average)
Affordable is whatever market will bear

This is only for curiosity sake, no corporate agenda. Just looking for peoples opinion.

[sojourner77]

Affordability is all around us. There are tiny houses for sale within the Austin city limits for as little as $26,000. No one is stopping anyone from buying them.

Sorry, can't post the link because of TOS, but if you Google it, you can find them.

[Novacek]

Originally Posted by Rynldsbr

According to Trulia.com a 3bdr home averages $378,000 in Austin. What is your definition of an affordable single family house?

Affordable is <$189,000 (50% of current average)
Affordable is <$283,500 (75% of current average)
Affordable is <$378,000 (100% of current average)
Affordable is whatever market will bear

This is only for curiosity sake, no corporate agenda. Just looking for peoples opinion.

Are you sure you're not including "3+" bedrooms? It looks like their web page only gives the option of 3+ (though if you customize the url it looks like you can limit to exactly 3). The median of that seems to be about 330 instead.

[Idlewile]

I'm not trying to be difficult but I think this depends on your housing priorities (what we ask newcomers to prioritize in the sticky) thus it's truly subjective.

For me, affordable = a decent house, zoned to decent schools, with decent access to shopping and highways. But what does that really mean when everyone's definition of 'decent' is different?

The best general example I can give is four years ago there were homes in Circle C in the mid-high 200s. (Coming from a higher COL out of state) I thought that was extremely affordable and very appealing because the community is quite nice and the schools are good. Unfortunately, those prices did not last long.

[riaelise]

I know what you've posted is an average, but there are many 3/2s in Austin that are below $378,000. I know of many. Just be prepared to jump for them.

Affordability varies from person by household income, debt load, and personal comfortability. For the average Austinite, making the average Austin h/h income, a $200-225k home would be considered affordable.

For us, an affordable home ranges from homes , $200k - 400+k. Personally, we'd rather not overpay if we don't have to. Our perfect scenario would be to get most of our needs and wants for $320k or a little below. As I've said before, I'll be staying away from the neighborhoods that have homes in the $200s due to the vulture investors turning them into rentals.

[sojourner77]

I think that prices are rising because people are agreeing to pay those prices. If it wasn't 'affordable' then people wouldn't buy it, and price would fall. Housing prices are elastic if we allow them to be, and they are not holding us hostage unless we want them to. We make about 150K a year and paid 220K for our house at the peak of the bubble. I wasn't forced to buy a 378K house, and neither was anyone else.

A lot of people turn their noses up at the neighborhoods they can afford because they don't consider them 'decent' If people don't think their neighborhood is 'decent' then they need to do something about it, and not run away, and become house-poor in the process.

[scm53]

Originally Posted by Rynldsbr

According to Trulia.com a 3bdr home averages $378,000 in Austin.

The average listing price for Austin homes for sale on Trulia ...

Your number, and therefore the entire question, is flawed for two reasons. First, that is listing price. Second, it is only homes for sale on Trulia.

Per today's AAS, the Austin median family home value is $196,500. About 1/2 of $378K.

[ScoPro]

Affordable to me, and the lower income blue collar folks, probably means something well under 120k.

obviously location will determine whether or not that is a "tiny" house or one that is practical for a family.

Case in point, one of my sons bought a 6 year old tract house (bank repo, I think) in Hutto in 2012 for $86,000. It is an 1,880 sq.ft. 4/2/2. The house was in good shape without any foundation problems. The WTW carpeting had to be replaced (with nice bamboo flooring), and he painted all the rooms. The house looks great and he is pleased as punch he got it when he did. Similar homes in his neighborhood are listed at $130k last I looked.

And yes, he likes Hutto just fine.

Couldn't come close to doing that in Austin.

[Spacepup]

Originally Posted by Idlewile

I'm not trying to be difficult but I think this depends on your housing priorities (what we ask newcomers to prioritize in the sticky) thus it's truly subjective.

For me, affordable = a decent house, zoned to decent schools, with decent access to shopping and highways. But what does that really mean when everyone's definition of 'decent' is different?

The best general example I can give is four years ago there were homes in Circle C in the mid-high 200s. (Coming from a higher COL out of state) I thought that was extremely affordable and very appealing because the community is quite nice and the schools are good. Unfortunately, those prices did not last long.

The real trouble is that in many neighborhoods the houses that fit what many newcomers or first time homebuyers would be looking for; 2 bed, 1 bath, ~1k sqft, needs updating, 3x median household income; are being bought cash, demolished, and replaced with a 3-4 bed, 2.5-3 bath, 2.6k sqft house with mable and hardwood throughout selling for 8x the city median HHI.

[Idlewile]

Originally Posted by Spacepup

The real trouble is that in many neighborhoods the houses that fit what many newcomers or first time homebuyers would be looking for; 2 bed, 1 bath, ~1k sqft, needs updating, 3x median household income; are being bought cash, demolished, and replaced with a 3-4 bed, 2.5-3 bath, 2.6k sqft house with mable and hardwood throughout selling for 8x the city median HHI.

True.

Further, even the 400K+ homes in my neighborhood are also consistently receiving cash bids. (They are just not being demolished.) It's one reason for the bidding wars over asking as well.

Edit: I should edit my above post about Circle C -- it wasn't even 4 years ago, maybe 3-3.5 at most.