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Old 08-06-2017, 10:49 AM
 
880 posts, read 819,497 times
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Quote:
Originally Posted by Whatsnext75 View Post
Then how is the housing market as high as it is?
Low interest rates, stable job market (for now), investors buying condos, rich parents of overseas students and nimby attitude of close by suburbs

Some of these factors can turn on a dime, especially the rates

The 200-250k salaries are mainly for highly specialized tech folk, it's not that common. For doctors and lawyers there hasn't been significant growth of salaries in the last 5 years in those sectors.

But due to the limited housing, it just takes a few of them to bid up prices in good locations

Last edited by bugelrex; 08-06-2017 at 11:01 AM..
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Old 08-06-2017, 11:47 AM
 
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'The 200-250k salaries are mainly for highly specialized tech folk, it's not that common. For doctors and lawyers there hasn't been significant growth of salaries in the last 5 years in those sectors'

They must be more common than we think. Also it seems like they average home is 500k around here. So if the average salary per household income is 75k-100k why does it seem like everyone is buying house with no problem? Everyone i know owns a home/condo in the Boston area. I cant imagine they all make a huge salary or have mom and dad help. I dont know how some people are doing it quite honestly.
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Old 08-07-2017, 07:19 AM
 
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Quote:
Originally Posted by Whatsnext75 View Post
'The 200-250k salaries are mainly for highly specialized tech folk, it's not that common. For doctors and lawyers there hasn't been significant growth of salaries in the last 5 years in those sectors'

They must be more common than we think. Also it seems like they average home is 500k around here. So if the average salary per household income is 75k-100k why does it seem like everyone is buying house with no problem? Everyone i know owns a home/condo in the Boston area. I cant imagine they all make a huge salary or have mom and dad help. I dont know how some people are doing it quite honestly.
The upper 5 percentile in MA has a household income of ~239K. It's not hard to imagine this segment alone, ignoring the influence of investors and foreign buyers, can absorb eastern MA's limited inventory. Those pulling this income are a minority, but that still represents 85K households. 340K households pull 150K+ incomes, which combined with a few good investments, can net high end homes.
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Old 08-07-2017, 08:10 AM
 
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Don't forget the generational transfer of wealth from the baby boomers to their children. Similar to mom and dad helping out that was mentioned earlier but not just as a helping hand-there's significant inherited wealth out there being used to finance these home purchases.
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Old 08-07-2017, 10:16 AM
 
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A lot of money made a lot of money by buying low ten years ago too, i'm sure.
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Old 08-07-2017, 10:56 AM
 
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Quote:
Originally Posted by Shrewsburried View Post
The upper 5 percentile in MA has a household income of ~239K. It's not hard to imagine this segment alone, ignoring the influence of investors and foreign buyers, can absorb eastern MA's limited inventory. Those pulling this income are a minority, but that still represents 85K households. 340K households pull 150K+ incomes, which combined with a few good investments, can net high end homes.
what about the other 95%? something just doesn't make sense to me...how is everyone able to buy here or pay 2500-3k rent. It's really difficult to find a house for under 400k ANYWHERE in the area but it seems there are a lot of families making under 150k. Surely not everyone's parents are helping.
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Old 08-07-2017, 10:59 AM
 
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know a lot of people as of recently who have been able to get a very nice engagment ring, have a really nice wedding, and buy a home in the boston area on an average salary. I never hear anyone saying, yeah we just cant afford it all. Seems like they are affording it all.
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Old 08-07-2017, 11:16 AM
 
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Quote:
Originally Posted by Whatsnext75 View Post
what about the other 95%? something just doesn't make sense to me...how is everyone able to buy here or pay 2500-3k rent. It's really difficult to find a house for under 400k ANYWHERE in the area but it seems there are a lot of families making under 150k. Surely not everyone's parents are helping.
They're either commuting in from areas like Ayer, Lowell, Bridgewater, etc.; or have multiple revenue streams which aren't captured under 'household income' data; or willing to spend a higher percentage of their income on housing.

Additionally, it's not as if every landlord/investor/homeowner purchased their properties yesterday. You only need a small population of buyers who can afford properties now to maintain current pricing.
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Old 08-07-2017, 11:25 AM
 
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true. I just never seem to come across anyone who isn't able to make it work. The stories of people having to move seem to be few and far between.
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Old 08-07-2017, 11:27 AM
 
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Quote:
Originally Posted by Whatsnext75 View Post
true. I just never seem to come across anyone who isn't able to make it work. The stories of people having to move seem to be few and far between.
A lot of people are stretched very thin and would be unable to survive if they lost their job. People are just reluctant to discuss the negative aspects of their finances with friends.
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