Affordability discussion (split from Iran thread)

#279
#279
OHvol40 said:
Median annual salary for a 30 yo in America right now is around $59,000 or about $1,100/week. What homes are available for someone who has probably financed a car for around $500 per month ($350/month if you go dirt cheap), full coverage insurance $150-$250 per month, maybe a student loan (average monthly payment $200-300), utilities which average $400-600 per month, maybe a small credit card with a limit under $5000, paying 22% in taxes, probably $300-$500 for health insurance premiums, gas, groceries… What can the average 30 yo making an average salary paying average bills afford?
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Any empathy that might have built for this hypothetical individual went flying out the window with “financed a car for $500 per month”….
 
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#281
#281
85SugarVol said:
Any empathy that might have built for this hypothetical individual went flying out the window with “financed a car for $500 per month”….
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Way to skirt the question. Doesn’t anyone here want to talk about wages VS the overall COL in this country, or are we all just going to gripe about mundane details without covering the big picture. Being able to afford living here is the biggest factor in politics and this is the political forum, correct?
 
#284
#284
marcusluvsvols said:
Without exaggeration, for more than 10years straight I worked a full time job in construction as a foreman and then Super, and kept side work nights at least 3weeks out of every4. Worked til 10pm every night except Wed and all day Saturdays. Saw my kids (awake) on Wed night at church and on Sundays for church services/home and that was about it. Kept my wife at home with both kids until they started kindergarten. Making about $100k a year and supporting a family of 4 while tithing 10-15% of everything I made. We bought our 1st house, a 3br 1 bath, 2story millhouse 1450sf for $70,000. I had to work on it for almost 6months before we could move in. I had to work on it for a couple months as a side job BEFORE we could get approved for the mortgage. Made a $2000 deposit to previous owner and he agreed to take down the listing and hold it for us until I could get it to pass the banks inspection. To this day neither my wife nor I have ever owned a brand new car/truck. Managed to keep her home with both until school though, and put both thru Christian school. We weren't poor, but definitely lower middle class. We started with nothing. At all.

Did I miss a lot of things when my kids were small? Yes. Do I regret it? Not really. I was still able to coach ball teams for part of my son's youth and all of my daughters after she started school. I gave them all that I could time wise and still pay the bills. I understood early on that my primary role on this Earth was to provide and protect, and to worship. I was very fortunate to start making more money and when my wife was able to go back to work, then I was around evenings and weekends, no need for constant side work. It was great. My primary job was to make sure they always had food and shelter, mom and church, decent clothes etc so nobody ever made fun of them at school. My kids always had all those things even though we started out nearly penniless. Mostly because of God no doubt...but also because I was willing and able to work 60hrs plus a week and never turn down side work. I was scared to death to ever turn down a side job, that God would find me lazy and not bless and protect us the way He did. He was much better to me than I ever deserved. I am thankful that He strengthened my body and resolve to do what had to be done. I agree with you about people who want everything but aren't willing to endure the pain, work, and sacrifice to have those things. We are promised nothing.

Edit: I remember being really impressed with your hustle back in the day. Were teaching in NC and had food carts too and another side hustle IIRC? You were always grinding man. Respect.
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Yeah, that’s pretty much right. I taught, coached multiple sports, worked weekends as a food vendor, in the winter I’d work weekends at Sears. Eventually had to give the vending and coaching up so I could take evening classes to get into PA school. Grew up in a mix of trailer parks and section 8 housing
 
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#287
#287
OHvol40 said:
Way to skirt the question. Doesn’t anyone here want to talk about wages VS the overall COL in this country, or are we all just going to gripe about mundane details without covering the big picture. Being able to afford living here is the biggest factor in politics and this is the political forum, correct?
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Bro, your details matter. I don't know how to get around that.
 
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#289
#289
hog88 said:
The 90s
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My parents bought their house in 85 for 64k. Now worth like 485k.

Housing has to get in line with current incomes or the whole system will become renters.

I do think Gen Z is f’d long term.

Side note….starbucks is moving logistics here. Spoke with contractors who are doing bids and rumor is they will be moving entire HQ next but trying to mitigate PR.

Bids are for current site plus potential site.

Just gonna drive prices here more.
 
#290
#290
OHvol40 said:
I asked you to make your own hypothetical case, no interest. You’re interested in picking apart my fake case study, though.
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You won't like my Heupel thetical. Yours is fixable but you don’t like my suggestions.

Ive had 3 tenants move to ownership. Louder did it. That's the evidence I'm using.
 
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#291
#291
Check this out. 1st time home buyer can get a 3% down option through FHA.

A $250,000, 30-year mortgage at a ~7% interest rate will likely cost between $1,750 and $1,900+ per month, including principal, interest, taxes, insurance, and PMI. With PMI, you can expect an additional $100–$200+ monthly, bringing a $1,663 base payment (7% rate) closer to $1,800–$1,900. Total monthly costs vary based on down payment, taxes, and insurance.

Those puts the home payment a 200-400 more than rent in one of my comparable homes.
 
#292
#292
BigOrangeMojo said:
From professional experience, the overwhelming percentage of intermediate/long-term affordability choices are due to poor personal financial decisions....
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I work with several mid twenty year olds that are frequently complaining about cost of living and not being able to buy a house.

All while they show up in new cars with a Starbucks every morning and DoorDash lunch daily. The craziest part to me is how many of them spent money (took out loans) on degrees and do not even work in that field.
 
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#293
#293
McDad said:
You won't like my Heupel thetical. Yours is fixable but you don’t like my suggestions.

Ive had 3 tenants move to ownership. Louder did it. That's the evidence I'm using.
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I don’t think anyone is saying home ownership is impossible, but it certainly isn’t nearly as easy as it has been for the silent generation, boomers, Gen X, and early millennials.
 
#294
#294
OHvol40 said:
I don’t think anyone is saying home ownership is impossible, but it certainly isn’t nearly as easy as it has been for the silent generation, boomers, Gen X, and early millennials.
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Economists list today as the 3rd most difficult time to own a home:

#1 1980s- 18% interest rates with stagnant wages....from 1973-1990 real wages actually declined slightly. This is referred to as "Great Wage Stagflation"

#2 Pre-FHA (before 1932)--- Huge Down Payments
40-50% down payments
5-10 year loans
Balloon features
this period had the highest barrier to entry, but boy houses were cheap. This would be the fastest way to today to cut housing prices by 50-60%

#3 2022-Now Worst Price to Income ratio (slightly higher than 2006)
 
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#296
#296
MurphyVol said:
Economists list today as the 3rd most difficult time to own a home:

#1 1980s- 18% interest rates with stagnant wages....from 1973-1990 real wages actually declined slightly. This is referred to as "Great Wage Stagflation"

#2 Pre-FHA (before 1932)--- Huge Down Payments
40-50% down payments
5-10 year loans
Balloon features
this period had the highest barrier to entry, but boy houses were cheap. This would be the fastest way to today to cut housing prices by 50-60%

#3 2022-Now Worst Price to Income ratio (slightly higher than 2006)
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Good stats. I would say we’re living through our current situation, I don’t see any relief on the horizon. We’ll see how it turns out I suppose. In the 80s it was tough, but the median home price ranged between roughly $50,000 and $70,000, which adjusted for inflation is around $180,000 to $275,000 in 2026 money. Our current median sales price is just over $400,000 I believe.
 
#299
#299
OHvol40 said:
Way to skirt the question. Doesn’t anyone here want to talk about wages VS the overall COL in this country, or are we all just going to gripe about mundane details without covering the big picture. Being able to afford living here is the biggest factor in politics and this is the political forum, correct?
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When your COL complaint contains a $500 car note, it’s not an illustration of a COL issue in this country.

It’s an example of poor financial decision making.
 
#300
#300
Just thought of this.
Mobile home were an option back on the last "crisis". Double wide, on average will run about 150k. Cost of land and set up, a person can get ownership for 200k. Can qualify for 30 year loan, too.


What's wrong with that?
 
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