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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 Ro

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.

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.