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Phoenix is unaffordable only for people who aren't very financial savvy.
Renting is a huge dead end and a sfh is usually too expensive for the average buyer, so one of the ways around this mess is downsize a little and get a small condo. I found one in a nice area and my payments are cheaper than what I was throwing away on rent.
With all due respect, this sounds very out of touch. Based on some of the replies, it seems that people are only thinking of those within their same social class or stature. A person who is working their ass off at 2 jobs making $30k a year is most likely not going to be able to save up the money to buy a condo. It's not that they're not financially savvy, they just don't have the financial means to buy a place period.
Cut back on unnecessary expenses. Pack your lunch and cook at home instead of eating out. Is upgrading to the latest, greatest smart phone really necessary? Clip coupons for grocrey shopping. With the gas prices the way they are, walking, biking, or taking public transit would be less expensive options than driving your own vehicle. I completely agree that wages are not keeping up with the cost of living, but there are many things a person can do to be frugal and save money.
This is all great advice that everyone should follow, especially driving less or not at all. But in the grand scheme of things, the $84 a month that people save by not going to Starbucks or the $100 they save by not eating out isn't going to move the needle much when housing prices are going through the roof.
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Even if any of this holds true, most companies will pay severance to employees who are laid off. Generally speaking, the longer the tenure, the longer the severance. In that timeframe, a person can easily be searching for employment ... and many companies are still desperate for workers, so there's really no excuse to not be employed.
Standard severance pay is about 2 weeks for every year of employment. So that's not really useful to anyone who's been with their company for fewer than 10 years and it's become less and less likely that people remain with their companies for life. Companies are still desperate for workers but they still stupidly refuse to pay a proper wage for work. One should be looking for a job while they are unemployed but the process to get a new job to cover all of life's current expenses does take time.
this is why a person needs another person who has a full-time job to help the other person by saving on expenses together so the two persons can save enough for a down payment on a two-person house in an area that is affordable
Many of these posts sound like people never thought about buying a house until lately. I feel for the people just starting out, but I have no sympathy for the 40-year-old that never started adulting.
This is all great advice that everyone should follow, especially driving less or not at all. But in the grand scheme of things, the $84 a month that people save by not going to Starbucks or the $100 they save by not eating out isn't going to move the needle much when housing prices are going through the roof.
Standard severance pay is about 2 weeks for every year of employment. So that's not really useful to anyone who's been with their company for fewer than 10 years and it's become less and less likely that people remain with their companies for life. Companies are still desperate for workers but they still stupidly refuse to pay a proper wage for work. One should be looking for a job while they are unemployed but the process to get a new job to cover all of life's current expenses does take time.
Cutting out the incidentals is a good start and getting rid of the car can also help. This means living near the light rail or bus route. Then there's rent. In order to save money you may need a smaller apartment which might not be in the best of condition. Nevertheless this is doable.
But here's the problem as I see it: crime. In order to save money you might need to live in a less than desirable location. Which means crime can be a concern. Personally, I've made a LOT of adjustments over the years to save money. However, I won't live where it's not safe.
So, if I were making 30k and my wife 20k we could stay in the Phx metro and pray for rent control. Or we could leave AZ and move to where the cost of living was more in line with our income.
I'd also be looking for ways to increase my income. Perhaps a side business that could bring in extra money.
So, if I were making 30k and my wife 20k I could stay here and pray for rent control or my wife and I could move to another area of the county which was more in line with our income.
I've always studied the problem in order to figure out a solution. And the answer is to spend less and make more. Duh! And the formula isn't exactly hard.
In my lifetime, I certainly cut a massive amount of expenses. When my 2nd home went way over budget (I contracted it out to save $), I sold two newer cars that I LOVED. Then, I bought two POS cars. One was $400. It was totaled by insurance and bought it from a friend and replaced a couple of door panels and yanked out the front bumper. It had no air, and a manual 4 speed. And the other $2500 POS grandpa Cutless Ciera with velour seats. Both were 4 cylinders and got good mileage. So I went from $25K in cars to $2900. I cut coupons, never ate out, and saved every single nickel.
Next, I worked a 2nd job as a technician (contract work) for a start-up. I about lost it (tons of stress at age 26) but that's what I did to get what I wanted. And yes, I moved farther out too. When we build our 2nd home, we lived with my MIL for 8 months. No fun. But we banked like mad!
Next, I finished retooling my career to make more $$'s. IMO in 2022, it has NEVER been a better time to move up ranks in jobs or switch careers. Oh, I know Mr. Bob the "Catch-22" would tell you how rough it is out there. But we enjoying an all-time record low unemployment. And the employers really don't want that last 3%. If people don't act now, they will hopelessly waste this great opportunity.
That said, as sure as I am sitting here PHX metro is going to have a rent correction. In fact, SFH's are coming down in rent here around PHX as we speak. Read the Cromford report as it covers it. And HOUSING costs are going to probably peak this summer. I won't be surprised if existing home prices decrease by this Fall. The investors showed up last June to gobble up the inventory when things started to soften. Again, read the Cromford report. IMO, investors aren't going to do that this round. And MLS listings are building as we speak. Up 20% in the past 2 weeks. Not because of more listings, but because days on market are increasing. The word on the street hasn't hit yet because many people aren't reading what Mike Orn is saying. He studies this market like no other. But once people see it, the sense of urgency will be killed and yes, values MAY tumble. Will that happen? It's too early to tell. But the market IS changing as we speak. Give it another month and the picture will get clear as we move forward. But the house resale values are going to continue to go up until we reach July. Then, that's when the popcorn will be popped. It could get interesting.
Last edited by MN-Born-n-Raised; 05-03-2022 at 04:59 PM..
I've always studied the problem in order to figure out a solution. And the answer is to spend less and make more. Duh! And the formula isn't exactly hard.
That said, as sure as I am sitting here PHX metro is going to have a rent correction. In fact, SFH's are coming down in rent here around PHX as we speak. Read the Cromford report as it covers it. And HOUSING costs are going to probably peak this summer. I won't be surprised if existing home prices decrease by this Fall. The investors showed up last June to gobble up the inventory when things started to soften. Again, read the Cromford report. IMO, investors aren't going to do that this round. And MLS listings are building as we speak. Up 20% in the past 2 weeks. Not because of more listings, but because days on market are increasing. The word on the street hasn't hit yet because many people aren't reading what Mike Orn is saying. He studies this market like no other. But once people see it, the sense of urgency will be killed and yes, values MAY tumble. Will that happen? It's too early to tell. But the market IS changing as we speak. Give it another month and the picture will get clear as we move forward. But the house resale values are going to continue to go up until we reach July. Then, that's when the popcorn will be popped. It could get interesting.
Great information. In this coming cycle bust the buy-for-rent companies and speculators will be screwed. The excess is not so much in mortgage underwriting standards as in the 2006-10 downturn, but in buy-for-let outfits. Starting from the biggest fish Blackrock down to your individual speculator. Boy are we seeing them ramp up like there's no tomorrow. Someone big will eventually fail, maybe Blackrock. In hindsight everyone will laud Zillow for getting out while the going is good (even though they took a lot of abuse for their relatively minuscule losses). I am salivating about the coming opportunities, but most likely not getting active before 2027.
I've always studied the problem in order to figure out a solution. And the answer is to spend less and make more. Duh! And the formula isn't exactly hard.
In my lifetime, I certainly cut a massive amount of expenses. When my 2nd home went way over budget (I contracted it out to save $), I sold two newer cars that I LOVED. Then, I bought two POS cars. One was $400. It was totaled by insurance and bought it from a friend and replaced a couple of door panels and yanked out the front bumper. It had no air, and a manual 4 speed. And the other $2500 POS grandpa Cutless Ciera with velour seats. Both were 4 cylinders and got good mileage. So I went from $25K in cars to $2900. I cut coupons, never ate out, and saved every single nickel.
Next, I worked a 2nd job as a technician (contract work) for a start-up. I about lost it (tons of stress at age 26) but that's what I did to get what I wanted. And yes, I moved farther out too. When we build our 2nd home, we lived with my MIL for 8 months. No fun. But we banked like mad!
Next, I finished retooling my career to make more $$'s. IMO in 2022, it has NEVER been a better time to move up ranks in jobs or switch careers. Oh, I know Mr. Bob the "Catch-22" would tell you how rough it is out there. But we enjoying an all-time record low unemployment. And the employers really don't want that last 3%. If people don't act now, they will hopelessly waste this great opportunity.
That said, as sure as I am sitting here PHX metro is going to have a rent correction. In fact, SFH's are coming down in rent here around PHX as we speak. Read the Cromford report as it covers it. And HOUSING costs are going to probably peak this summer. I won't be surprised if existing home prices decrease by this Fall. The investors showed up last June to gobble up the inventory when things started to soften. Again, read the Cromford report. IMO, investors aren't going to do that this round. And MLS listings are building as we speak. Up 20% in the past 2 weeks. Not because of more listings, but because days on market are increasing. The word on the street hasn't hit yet because many people aren't reading what Mike Orn is saying. He studies this market like no other. But once people see it, the sense of urgency will be killed and yes, values MAY tumble. Will that happen? It's too early to tell. But the market IS changing as we speak. Give it another month and the picture will get clear as we move forward. But the house resale values are going to continue to go up until we reach July. Then, that's when the popcorn will be popped. It could get interesting.
When it comes to AZ RE the Cromford report is considered the go-to guide. Nobody studies the AZ market like Mike Orr.
I've always studied the problem in order to figure out a solution. And the answer is to spend less and make more. Duh! And the formula isn't exactly hard.
In my lifetime, I certainly cut a massive amount of expenses. When my 2nd home went way over budget (I contracted it out to save $), I sold two newer cars that I LOVED. Then, I bought two POS cars. One was $400. It was totaled by insurance and bought it from a friend and replaced a couple of door panels and yanked out the front bumper. It had no air, and a manual 4 speed. And the other $2500 POS grandpa Cutless Ciera with velour seats. Both were 4 cylinders and got good mileage. So I went from $25K in cars to $2900. I cut coupons, never ate out, and saved every single nickel.
Next, I worked a 2nd job as a technician (contract work) for a start-up. I about lost it (tons of stress at age 26) but that's what I did to get what I wanted. And yes, I moved farther out too. When we build our 2nd home, we lived with my MIL for 8 months. No fun. But we banked like mad!
Next, I finished retooling my career to make more $$'s. IMO in 2022, it has NEVER been a better time to move up ranks in jobs or switch careers. Oh, I know Mr. Bob the "Catch-22" would tell you how rough it is out there. But we enjoying an all-time record low unemployment. And the employers really don't want that last 3%. If people don't act now, they will hopelessly waste this great opportunity.
That said, as sure as I am sitting here PHX metro is going to have a rent correction. In fact, SFH's are coming down in rent here around PHX as we speak. Read the Cromford report as it covers it. And HOUSING costs are going to probably peak this summer. I won't be surprised if existing home prices decrease by this Fall. The investors showed up last June to gobble up the inventory when things started to soften. Again, read the Cromford report. IMO, investors aren't going to do that this round. And MLS listings are building as we speak. Up 20% in the past 2 weeks. Not because of more listings, but because days on market are increasing. The word on the street hasn't hit yet because many people aren't reading what Mike Orn is saying. He studies this market like no other. But once people see it, the sense of urgency will be killed and yes, values MAY tumble. Will that happen? It's too early to tell. But the market IS changing as we speak. Give it another month and the picture will get clear as we move forward. But the house resale values are going to continue to go up until we reach July. Then, that's when the popcorn will be popped. It could get interesting.
Spot on give or take 30 days.
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Both were 4 cylinders and got good mileage. So I went from $25K in cars to $2900. I cut coupons, never ate out, and saved every single nickel.
But we enjoying an all-time record low unemployment. And the employers really don't want that last 3%. 
If people don't act now, they will hopelessly waste this great opportunity. 
