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Exactly. I live in a 2nd tier city. My friends who are home owners have very middle class blue collar jobs. Examples include auto mechanic, security system i

Exactly. I live in a 2nd tier city. My friends who are home owners have very middle class blue collar jobs. Examples include auto mechanic, security system installer, and local delivery truck driver. None of them got "help."

ForHackernews 8y ago
How old are they? I know plenty of people who bought a house 30 or 40 years ago on blue collar salaries. I don't know any <30 year olds who bought property without parental help.
- ijpoijpoihpiuoh 8y ago
  Where do the people you know live? That might inform the probability of being able to buy a home with or without parental help. I just picked a metro: Baton Rouge. Median home price there is around $160k, although naturally there is plenty of inventory available for less than $100k. Some of it's in pretty dismal shape, but, looking at Zillow, there are non-zero houses in this category that look livable. The median HHI in Baton Rouge is $45k. So it would take about four years for the median family to save up enough to buy something that's at least livable, assuming they can save ten percent of their income. I couldn't say whether blue collar people make at, above, or below the median, but it strikes me as likely that at least some of them will be able to purchase a home in this type of metro.
  - ForHackernews 8y ago
    I grew up in the midwest. Most of the people I know are in Iowa, some in Illinois and Missouri. Saving up a down-payment is a significant obstacle, I think. I know that in some areas, you can get a rural development loan that requires a much smaller downpayment, but my friends don't want to live in the boonies and it would lead to a pretty miserable commute for them.
    - AlexTWithBeard 8y ago
      FHA gives loans at 3.5% downpayment.
    - ijpoijpoihpiuoh 8y ago
      A hearty mmmeeehhhh to the idea that the median household cannot save 10%. Proof by existence: 50% of families live on less than the median. Probably at least 35% live on 10% or more less than the median. At that point it's a matter of priorities. Not saying life is cushy in this situation by any means. And of course there will be many families that cannot save enough. But it is doable if someone wants to make it a priority.
      - Consultant32452 8y ago
        I agree with you, additionally it's important to understand the concept of a "starter home." These homes may be much older, in less than ideal neighborhoods, and need you to put some sweat equity in them. The mistake I see some young people making is being unwilling to accept a home of lower quality than the ones their parents currently live in. They often don't see that this is their parents' second or third home that they've upgraded to. I don't blame the young people, I think this is a failure of the parents to set reasonable expectations of how to build a life.
- ralusek 8y ago
  Blue collar jobs tend to pay well.
- 1auralynn 8y ago
  I bought a house in Pittsburgh when I was 26. Sold it and moved to the West Coast, where I rent, though.
- Consultant32452 8y ago
  They are in their mid-30s.
- j-c-hewitt 8y ago
  Go on a digital spirit quest with Zillow to towns and cities where you have never been. Be prepared to be amazed!
- adventured 8y ago
  A $180,000 30yr mortgage will cost you ~$880 per month. These days the median of all home sales in the US is about $225,000. The hard part of that $225k purchase for most people under 30 is the down payment of $45k. The median full-time income is about $50,000 in the US. Emphasis that that is the median, not average. Two household incomes is ~$85,000 or higher at median type wages (assuming a pairing of one full-time median, one lesser). Home ownership is very much within reach at the median, so long as your income matches your market. You can't live in major US cities, earn the median, and ever hope to own a home.
  - AlexTWithBeard 8y ago
    With the average cost of wedding in the US being above $35k (https://www.marketwatch.com/story/what-the-average-american-wedding-looks-like----and-costs-2017-02-10 https://www.marketwatch.com/story/what-the-average-american-...), $45k of downpayment seems to be well within the means of an average family.
    - ForHackernews 8y ago
      Marriage rates are also declining except among the middle to upper-middle classes.
    - adventured 8y ago
      It's very doable, especially if you have a partner to split it with. Where the $45k gets someone under 30, is just that it can take several years to put together that sum. Most people don't start to hit their earning stride until the very late 20s or early 30s. So you're in the median bracket and you get your first serious, solid paying job by ~24/25. It's reasonable that if you're diligent about savings every month, you could have $45k+ by yourself at 32-36 years of age, and I'm assuming some financial setbacks along the way. With a partner, it really shouldn't be a problem by those ages. To do it before 30, you'd need a good economic pairing of two people that already are near or above $85k by 30. All assuming you're not living in an expensive market of course. With the necessary caveat: having children before 28 or 30 considerably changes the equation (unless you have a larger income in the household to offset that additional cost), as can serious health problems and associated bills (depending on your job/career situation).
- deleted 8y ago
  [deleted]

ForHackernews 8y ago

How old are they? I know plenty of people who bought a house 30 or 40 years ago on blue collar salaries. I don't know any <30 year olds who bought property without parental help.

ijpoijpoihpiuoh 8y ago
Where do the people you know live? That might inform the probability of being able to buy a home with or without parental help. I just picked a metro: Baton Rouge. Median home price there is around $160k, although naturally there is plenty of inventory available for less than $100k. Some of it's in pretty dismal shape, but, looking at Zillow, there are non-zero houses in this category that look livable. The median HHI in Baton Rouge is $45k. So it would take about four years for the median family to save up enough to buy something that's at least livable, assuming they can save ten percent of their income. I couldn't say whether blue collar people make at, above, or below the median, but it strikes me as likely that at least some of them will be able to purchase a home in this type of metro.
- ForHackernews 8y ago
  I grew up in the midwest. Most of the people I know are in Iowa, some in Illinois and Missouri. Saving up a down-payment is a significant obstacle, I think. I know that in some areas, you can get a rural development loan that requires a much smaller downpayment, but my friends don't want to live in the boonies and it would lead to a pretty miserable commute for them.
  - AlexTWithBeard 8y ago
    FHA gives loans at 3.5% downpayment.
  - ijpoijpoihpiuoh 8y ago
    A hearty mmmeeehhhh to the idea that the median household cannot save 10%. Proof by existence: 50% of families live on less than the median. Probably at least 35% live on 10% or more less than the median. At that point it's a matter of priorities. Not saying life is cushy in this situation by any means. And of course there will be many families that cannot save enough. But it is doable if someone wants to make it a priority.
    - Consultant32452 8y ago
      I agree with you, additionally it's important to understand the concept of a "starter home." These homes may be much older, in less than ideal neighborhoods, and need you to put some sweat equity in them. The mistake I see some young people making is being unwilling to accept a home of lower quality than the ones their parents currently live in. They often don't see that this is their parents' second or third home that they've upgraded to. I don't blame the young people, I think this is a failure of the parents to set reasonable expectations of how to build a life.
ralusek 8y ago
Blue collar jobs tend to pay well.
1auralynn 8y ago
I bought a house in Pittsburgh when I was 26. Sold it and moved to the West Coast, where I rent, though.
Consultant32452 8y ago
They are in their mid-30s.
j-c-hewitt 8y ago
Go on a digital spirit quest with Zillow to towns and cities where you have never been. Be prepared to be amazed!
adventured 8y ago
A $180,000 30yr mortgage will cost you ~$880 per month. These days the median of all home sales in the US is about $225,000. The hard part of that $225k purchase for most people under 30 is the down payment of $45k. The median full-time income is about $50,000 in the US. Emphasis that that is the median, not average. Two household incomes is ~$85,000 or higher at median type wages (assuming a pairing of one full-time median, one lesser). Home ownership is very much within reach at the median, so long as your income matches your market. You can't live in major US cities, earn the median, and ever hope to own a home.
- AlexTWithBeard 8y ago
  With the average cost of wedding in the US being above $35k (https://www.marketwatch.com/story/what-the-average-american-wedding-looks-like----and-costs-2017-02-10 https://www.marketwatch.com/story/what-the-average-american-...), $45k of downpayment seems to be well within the means of an average family.
  - ForHackernews 8y ago
    Marriage rates are also declining except among the middle to upper-middle classes.
  - adventured 8y ago
    It's very doable, especially if you have a partner to split it with. Where the $45k gets someone under 30, is just that it can take several years to put together that sum. Most people don't start to hit their earning stride until the very late 20s or early 30s. So you're in the median bracket and you get your first serious, solid paying job by ~24/25. It's reasonable that if you're diligent about savings every month, you could have $45k+ by yourself at 32-36 years of age, and I'm assuming some financial setbacks along the way. With a partner, it really shouldn't be a problem by those ages. To do it before 30, you'd need a good economic pairing of two people that already are near or above $85k by 30. All assuming you're not living in an expensive market of course. With the necessary caveat: having children before 28 or 30 considerably changes the equation (unless you have a larger income in the household to offset that additional cost), as can serious health problems and associated bills (depending on your job/career situation).
deleted 8y ago
[deleted]