2022 Real Estate Observations (Boston, Cambridge: neighborhood, median income, live in)

[msRB311]

Originally Posted by newenglandgal123

Absurd to think families have to be on a hamster wheel to make sure they're bringing in at least that $250K ea year to sustain what really are just the basics.

yet 250k comes so easy to some people based on what their field/industry is.

[Higherho]

Originally Posted by msRB311

yet 250k comes so easy to some people based on what their field/industry is.

Not ever industry is booming like certain sectors. if you’re in one of those sectors, then you will have blinders on and not know what is actually happening around you because you’re not in those positions in those sectors. It isn’t as common as you think either. Look at the calculator above by Pew research, it indicates that only 28% of individuals in the Boston-Cambridge, Newton MA region actually are in the “upper” middle class of incomes. That isn’t a-lot.

For example, in the Boston, Cambridge, Newton region - 132,000 a year puts you in the “middle” class income if you have two people in the household, which counts for 51% of the region. The individuals above that in the “upper” only are 28% of the individuals.

[brk330]

Originally Posted by newenglandgal123

Absurd to think families have to be on a hamster wheel to make sure they're bringing in at least that $250K ea year to sustain what really are just the basics.

I'd like to see a breakdown of what people think are the 'basics'.
I am often shocked at people's car payments, phone plans, streaming services, meal delivery subscriptions, etc. etc.
For example: The average cell phone bill is over $120 a month.
That is 5x times what I pay for what I would consider a 'basic' plan.

[newenglandgal123]

Originally Posted by brk330

I'd like to see a breakdown of what people think are the 'basics'.
I am often shocked at people's car payments, phone plans, streaming services, meal delivery subscriptions, etc. etc.
For example: The average cell phone bill is over $120 a month.
That is 5x times what I pay for what I would consider a 'basic' plan.

$120 does seem insane for an average monthly cell phone bill. Mine isn't quite as low as yours, but it is about $50/month. Also, when it comes to car payments keep in mind some people get auto allowances from their companies which could skew monthly payments higher even though they aren't necessarily paying for it via their salaries. I do and I definitely got a nicer vehicle because of it. If I'm in my car a decent amount I want something comfortable and more luxurious than your ho hum run of the mill Honda CRV or Toyota Camry....although I'm sure they're perfectly fine vehicles.

[Higherho]

Originally Posted by brk330

I'd like to see a breakdown of what people think are the 'basics'.
I am often shocked at people's car payments, phone plans, streaming services, meal delivery subscriptions, etc. etc.
For example: The average cell phone bill is over $120 a month.
That is 5x times what I pay for what I would consider a 'basic' plan.

These are the same discussions I had when I was making 50k a year. These should not be the same discussions when you’re making 250k+ joint income a year. If you cannot see the problem with that, then you’re standing up for the inflated house rates in this area. Let a-lone the “penny” pushing here is quite funny. You think the problem is with people spending on streaming services, phone plan, and meal delivery subscriptions and not the inflated housing market? 120 a month isn’t bad for a family plan with verizon which is great deal. Better speeds, better data, etc.

Not ever industry is booming like certain sectors. if you’re in one of those sectors, then you will have blinders on and not know what is actually happening around you because you’re not in those positions in those sectors. It isn’t as common as you think either. Look at the calculator above by Pew research, it indicates that only 28% of individuals in the Boston-Cambridge, Newton MA region actually are in the “upper” middle class of incomes. That isn’t a-lot.

For example, in the Boston, Cambridge, Newton region - 132,000 a year puts you in the “middle” class income if you have two people in the household, which counts for 51% of the region. The individuals above that in the “upper” only are 28% of the individuals.

[msRB311]

Cars, phone plans, cable are considered basics I would say. The type of car someone buys is certainly going to vary. I think most people try to buy a safe car that has room when they have kids and often times this equals expensive.

I've cut down on going out to eat and take out. It just isn't worth it anymore. We go out like once a week.

I do think vacations are important, not necessarily a basic but still something families should be able to do. The cost of hotels has become pretty depressing. Even booking a trip to NH or VT these days seems far more expensive than it used to be. It's all about supply and demand I guess.

Meal delivery subscriptions seem dumb to me. Just find recipes online, buy food at the grocery store and cook.

Other costly things are clothing. I am shocked by what clothes cost these days even at places like Marshalls and Tj Max. Even more shocked when I see families of 5 or 6 constantly sporting vineyard vines, lulu lemon, multiple Canada goose jackets. I mean that stuff really adds up. There's really no deals to be had with clothing anymore. I remember going to Filene's basement with my mom as a kid and you could find deals...but i guess too many people found out about the deals. No more.

I've discussed this before here but things like botox and filler which many women get these days add up as well. That's on top of hair, nails, skin/makeup products and gym memberships. Many people get facials and massages too.

Kids sports...especially hockey which is popular in MA.

So yeah things add up and i can see if you feel pressured into certain things your 250k salaries will have you living paycheck to paycheck easily.

[newenglandgal123]

Originally Posted by msRB311

Cars, phone plans, cable are considered basics I would say. The type of car someone buys is certainly going to vary. I think most people try to buy a safe car that has room when they have kids and often times this equals expensive.

I've cut down on going out to eat and take out. It just isn't worth it anymore. We go out like once a week.

I do think vacations are important, not necessarily a basic but still something families should be able to do. The cost of hotels has become pretty depressing. Even booking a trip to NH or VT these days seems far more expensive than it used to be. It's all about supply and demand I guess.

Meal delivery subscriptions seem dumb to me. Just find recipes online, buy food at the grocery store and cook.

Other costly things are clothing. I am shocked by what clothes cost these days even at places like Marshalls and Tj Max. Even more shocked when I see families of 5 or 6 constantly sporting vineyard vines, lulu lemon, multiple Canada goose jackets. I mean that stuff really adds up. There's really no deals to be had with clothing anymore. I remember going to Filene's basement with my mom as a kid and you could find deals...but i guess too many people found out about the deals. No more.

I've discussed this before here but things like botox and filler which many women get these days add up as well. That's on top of hair, nails, skin/makeup products and gym memberships. Many people get facials and massages too.

Kids sports...especially hockey which is popular in MA.

So yeah things add up and i can see if you feel pressured into certain things your 250k salaries will have you living paycheck to paycheck easily.

For some, a weekly house cleaning service is viewed as a necessity. I was shocked when my colleague went on a rant about how she's having so much trouble finding a good house cleaner and the one before ruined her marble shower tile by using the wrong product. Then, the next one left streaks on the glass in the mirrors. Well, I hate to say it but you are better off doing it yourself and saving yourself the $$ too. I have a big problem paying people to do landscaping and house cleaning if I can do a better job than them. If it saves me time and they do an amazing job then great but often times it seems that's not the case.

[msRB311]

Oh yeah. A few of my neighbors have cleaning people come. One family said they had the service before they even had kids and they are pretty sensible low maintenance people. I don't get that either. I think once you have someone clean for you once it must become addicting.

We do have landscaping people come. And someone to spray for ticks. That's my husbands needs not mine.

[BostonMike7]

Originally Posted by newenglandgal123

It just doesn't seem feasible that folks can be keeping up with all these things unless they're all dual income households, both well into six figures. If not, maybe they're affording those homes because their retirement savings is suffering at the expense of the mortgage or maybe instead of getting a new BMW SUV they are going for a Honda Pilot or maybe clipping coupons for groceries?

I'd have to imagine though that many folks are just forgoing things like retirement savings simply because they need the money now. Based on some conversations I've had with friends and family, I'm almost certain it's the case in many situations.

Originally Posted by msRB311

I've discussed this before here but things like botox and filler which many women get these days add up as well.

Is that really a common thing?

[newenglandgal123]

Originally Posted by BostonMike7

I'd have to imagine though that many folks are just forgoing things like retirement savings simply because they need the money now. Based on some conversations I've had with friends and family, I'm almost certain it's the case in many situations.




Is that really a common thing?

Yikes, I'm always looking at trying to increase retirement savings. At the minimum, it's always good to contribute enough to get the full company match. Otherwise, it's like you're giving free money away.