Is the dream of home ownership in a decent neighborhood no longer possible for lower to lower-middle class Americans?
I live in an average COL area in Florida and the housing prices are absolutely insane. You can't even get a house that's in the ghetto for under $200,000. The average home price in very suburban middle class average neighborhood is 375-500k. 50 years ago, the average 25 year old could afford to buy a home, nowadays, most 25 year olds can't even get an entry level job without a bachelor's degree and 2-3 years of work experience, and even then, those jobs pay less than 50k a year. Most average 25 year olds are still working low paying jobs these days and can't even afford rent in most neighborhoods. Rent for a 1 bedroom apartment in my area is $1400-1600 a month, and that's for something extraordinarily average.
I just looked on Zillow and a 250 sq foot shack in my area is selling for $125,000, it's nuts.
And that shack is in the worst part of town in the hood
- 3 weeks ago
Poor people usually don't qualify financially to get a mortgage. You gotta make more money. Promotion. New line of work. Additional Schooling.
- A HunchLv 71 month ago
Homeownership has never been a likelihood for low income or low middle income Americans, unless they lived in the middle of a corn field.
-- so get off your, they use to be able to do this when it's not true.
- aLv 41 month ago
I live in Maine. Housing prices in Portland and surrounding communities have gone through the roof in eight months. Anyone who lived in a big city and had the means left (disregarding COVID suggestions) and went to the suburbs. Houses are being sold sight unseen, by people who are working remotely and being paid the same salary that supported them in NYC or Boston. That means someone earning an average or even 'pretty good' wage in Maine is unable to compete for a home.
It will be interesting to see how this plays out. I imagine for some new transplants, the novelty will wear off and they'll be unhappy, or bored, or wish they hadn't moved so far from wherever.
The other issue is: These folks are still earning their New York salaries. If working remotely does pan out for a lot of companies, the question will be: Will the compensation for new hires be adjusted, according to the cost of living where they live? Can you pay someone living in Portland, Maine less than someone doing the exact same job in San Francisco? Of course you *can* but how do you justify it? How will HR justify it if the woman living down the block on the Western Promenade is getting her NYC salary, and you're getting much less because you already live there?
Late husband and I bought our first house for a price less than his yearly salary. Paid off the 15 year mortgage and sold it a year later and it just about paid for the house I live in now. No way would I be able to afford a house without a hefty down payment.
Bachelor's degrees are probably less valuable than their price tags would suggest. I would urge any young person to consider a trade in which the training time was shorter and the cost of education less.