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Not counting coastal cities and high cost of living cities, how do most people not afford homes? I used a mortgage calculator, and if a couple has a income of 80k (40k a person), 600 in monthly debt, and a down payment if 10k, they could afford a home of 300k! Even 200k will get you something decent. That’s a pretty nice home in most of America, and making 40k a year isn’t hard. What am I missing?
Not counting coastal cities and high cost of living cities, how do most people not afford homes? I used a mortgage calculator, and if a couple has a income of 80k (40k a person), 600 in monthly debt, and a down payment if 10k, they could afford a home of 300k! Even 200k will get you something decent. That’s a pretty nice home in most of America, and making 40k a year isn’t hard. What am I missing?
You're missing a good grasp on the economic situation of about 1/3 of the adults in this country.
Well in my area (Austin-Round Rock MSA), homes in the good areas are at least 400k-500k at this point and making 80k isn't going to cut it unless you've put down enough and/or have next to no debt because you also have to factor in property taxes, that rise every year.
And even a 300k home can be unaffordable due to taxes, it all comes down to the monthly payment.
Many people don't have such little debt and many people don't put a lot down either.
Sounds more like trolling to me, but then again, some people are just clueless.
Yep.
But also, a lot of people don’t want to own homes. They’re a ton of responsibility. I bought only because I knew housing prices were getting out of control in my area, and I could be pushed out of a rental at any time due to the rising prices. Not wanting to potentially become nomadic with a three-pet household and a work-from-home job, I became a reluctant homeowner.
The stress of the first few years was awful because my house needed constant repairs. Still cheaper than renting, but the surprises really sucked. Like when the ground shifted and my 50-year-old house with minimal historical water damage suddenly began flooding at the drop of a hat for a few years. The ground shifted again, and now it doesn’t take on water at all, even during torrential rains. I was able to avoid serious damage or mold (yay air movers, shop vacs and institutional-grade dehumidifiers), but if I could not work from home, it would have been bad. As it was, my anxiety was through the roof every time it rained for years.
In rentals I’ve had, my only concern was mowing the yard. That’s it. The landlord took care of everything else. I love my house, but it’s a constant source of worry.
Uhhhh - the fact that not all households have a yearly income of 80k???? Is this a real question?
40k a year is like $20/hour. Minimum wage in many parts is $15 an hour. How can someone who’s halfway motivated not reach that income by their late 20s?
Because people don't want to live where nice homes are $300,000. They prefer to stick to highly desirable areas and whine because they can't afford to buy a house.
Because the majority of people make poor financial decisions. Look at those right now willing to spend $800 per night to stay down here at the beach, blowing all that stimulus $ or $ they saved from not traveling last year. Also, look how many people are eyeballs deep in debt. See all those $40k-$50k SUVs driving around? Doubt most people paid cash for them.
You cant just look at a payment. You have maintenance costs, you have to have a down payment, etc. If you have kids, you have those exorbitant expenses. If you are smart, you also have savings, a 401k, etc. If you obtain a mortgage, you'll also need a good credit score for optimal interest rates.
40k a year is like $20/hour. Minimum wage in many parts is $15 an hour. How can someone who’s halfway motivated not reach that income by their late 20s?
Actually, the minimum wage in a few parts is $15 an hour. While about half of the states are raising the minimum wage, it started for those states in January of this year and will increase gradually over the next few years.
I am guessing that 1) you have health insurance covered by your job; 2) you don't have kids; 3) you don't care where you live.
Otherwise, it is easy to see why people don't own a home.
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