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The median house price in Omaha is $128/sq. ft. (~$1280/sq. m.): * https://www.realtor.com/realestateandhomes-search/Omaha_NE/overview https://www.realtor.com/

The median house price in Omaha is $128/sq. ft. (~$1280/sq. m.): * https://www.realtor.com/realestateandhomes-search/Omaha_NE/overview https://www.realtor.com/realestateandhomes-search/Omaha_NE/o... 6700 * 128 = 857 600. From 2017: > This is the home of billionaire Warren Buffett. Located in a quiet neighborhood of Omaha, Nebraska. He bought the house for $31,500 in 1958, $250,000 in today's dollars. It's now worth an estimated $652,619. He calls it the "third-best investment he's ever made." * https://www.businessinsider.com/warren-buffett-modest-home-bought-31500-looks-2017-6 https://www.businessinsider.com/warren-buffett-modest-home-b...

syshum 5y ago
While that is technically accurate, a "working class" person living in an area where there is $128/sqft homes is not making enough to afford a 6,700 sq ft home... So sure you may be able to say working class in some other area makes enough to afford a similar PRICED home in their area, but that similar priced home in say LA would be 1/3 the size The median income in Omaha is 32,305 (USD) going off even 4x income to debt ratio that would be a home price $129,220 or about 1,000 sq foot, not too far off the average home size of 1300-1500 for a normal ranch home
UncleMeat 5y ago
And what does a working class person make in Omaha, $35,000? Less? A 30y mortgage at today's low interest rates with a 20% downpayment (how is this person going to save $160,000 for the downpayment?), you are spending $18,000 on a mortgage plus property tax. Add $8,000 for maintenance and suddenly a very very large portion of a working class income is going entirely to this house.
- handrous 5y ago
  Yep. When you see places like this in the US it is basically always the case that local incomes are shockingly (to a coastal or mountain-west sort) low, maybe coupled with stagnant or very slow population growth. You end up with decades worth of high-end house construction—some likely from better economic times—being competed over by only a tiny sliver of the local population who can afford the half-million to one-million range, for housing. When population and economic growth go negative, you'll see whole areas of amazing, beautiful houses rotting where they stand, because no-one wants them or because they've gotten so cheap that people who can't afford to keep them up can afford to buy them.
- UncleMeat 5y ago
  Whoops. Did my math very wrong. 30y mortgage for a 850k house with a 20% downpayment comes out to >30k annually.
- missedthecue 5y ago
  Median household income in Omaha is over $60k

syshum 5y ago

While that is technically accurate, a "working class" person living in an area where there is $128/sqft homes is not making enough to afford a 6,700 sq ft home... So sure you may be able to say working class in some other area makes enough to afford a similar PRICED home in their area, but that similar priced home in say LA would be 1/3 the size The median income in Omaha is 32,305 (USD) going off even 4x income to debt ratio that would be a home price $129,220 or about 1,000 sq foot, not too far off the average home size of 1300-1500 for a normal ranch home

UncleMeat 5y ago

And what does a working class person make in Omaha, $35,000? Less? A 30y mortgage at today's low interest rates with a 20% downpayment (how is this person going to save $160,000 for the downpayment?), you are spending $18,000 on a mortgage plus property tax. Add $8,000 for maintenance and suddenly a very very large portion of a working class income is going entirely to this house.

handrous 5y ago
Yep. When you see places like this in the US it is basically always the case that local incomes are shockingly (to a coastal or mountain-west sort) low, maybe coupled with stagnant or very slow population growth. You end up with decades worth of high-end house construction—some likely from better economic times—being competed over by only a tiny sliver of the local population who can afford the half-million to one-million range, for housing. When population and economic growth go negative, you'll see whole areas of amazing, beautiful houses rotting where they stand, because no-one wants them or because they've gotten so cheap that people who can't afford to keep them up can afford to buy them.
UncleMeat 5y ago
Whoops. Did my math very wrong. 30y mortgage for a 850k house with a 20% downpayment comes out to >30k annually.
missedthecue 5y ago
Median household income in Omaha is over $60k