4 ms·

I know plenty of people doing just fine in SF on much less than that 170k. Yes, they rent. But "buying homes after saving for a down payment after a few years"

I know plenty of people doing just fine in SF on much less than that 170k. Yes, they rent. But "buying homes after saving for a down payment after a few years" is not a reality in any major metro area at the moment, unless you're fine with small, old, and far out in the suburbs.

bradlys 6y ago
> Yes, they rent. But "buying homes after saving for a down payment after a few years" is not a reality in any major metro area at the moment, unless you're fine with small, old, and far out in the suburbs. Isn't true for people I know in other major cities that are working professionals. Most peers I have in their 30's are buying homes in other major cities - if they are engineers or have a spouse who is an engineer. I'm not talking about people who work retail. I'm talking specifically about engineers. Engineers in most major cities in the US can afford to buy a home if they have a spouse who works some kind of okay job. This just isn't true in the bay area.
- skrtskrt 6y ago
  I see - so you're saying that for someone: * in their 30s - so, say 10 years of engineer-but-not-FAANG salary * with a spouse who also has a white collar job & about 10 years of savings they would not have $200k to put down 20% towards a $1M place? Not that putting down 20% is even common anymore, average is ~9%. I guess I could believe it given how little housing there is in SF - but wow.
  - bradlys 6y ago
    Depends on the people. $180k + $80k is only $260k. It's enough to get a house at $1m but you'll be somewhat house poor. You have to assume they haven't been saving at $180+$80k that entire time unless you're assuming they're late 30's. 9% down isn't common for Bay Area btw. 30-45% of all homes are bought with cash (higher value the property - higher the all cash offer %). Do you think those numbers are like that in other parts of the country? Do you think you can get by with <10% down for a jumbo loan? The people I know who bought here have either paid all cash or had to put down even more than 20%. We haven't even discussed what a $1m home gets you here. I wouldn't buy a $1m home here. You will not get a nice home or neighborhood. Minimum $1.5m to break into the decent neighborhoods. Want something resembling what the rest of the professional middle class has? At least $2m+.

bradlys 6y ago

> Yes, they rent. But "buying homes after saving for a down payment after a few years" is not a reality in any major metro area at the moment, unless you're fine with small, old, and far out in the suburbs. Isn't true for people I know in other major cities that are working professionals. Most peers I have in their 30's are buying homes in other major cities - if they are engineers or have a spouse who is an engineer. I'm not talking about people who work retail. I'm talking specifically about engineers. Engineers in most major cities in the US can afford to buy a home if they have a spouse who works some kind of okay job. This just isn't true in the bay area.

skrtskrt 6y ago
I see - so you're saying that for someone: * in their 30s - so, say 10 years of engineer-but-not-FAANG salary * with a spouse who also has a white collar job & about 10 years of savings they would not have $200k to put down 20% towards a $1M place? Not that putting down 20% is even common anymore, average is ~9%. I guess I could believe it given how little housing there is in SF - but wow.
- bradlys 6y ago
  Depends on the people. $180k + $80k is only $260k. It's enough to get a house at $1m but you'll be somewhat house poor. You have to assume they haven't been saving at $180+$80k that entire time unless you're assuming they're late 30's. 9% down isn't common for Bay Area btw. 30-45% of all homes are bought with cash (higher value the property - higher the all cash offer %). Do you think those numbers are like that in other parts of the country? Do you think you can get by with <10% down for a jumbo loan? The people I know who bought here have either paid all cash or had to put down even more than 20%. We haven't even discussed what a $1m home gets you here. I wouldn't buy a $1m home here. You will not get a nice home or neighborhood. Minimum $1.5m to break into the decent neighborhoods. Want something resembling what the rest of the professional middle class has? At least $2m+.