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Unfortunately, at an average price of about $400,000 most of them are not going to be affordable for a typical young first-time buyer.
by ineedasername 5y ago
Unfortunately, at an average price of about $400,000 most of them are not going to be affordable for a typical young first-time buyer.
- jdavis703 5y ago$400k seems very affordable. I could easily buy a house today if that’s what FHA-grade (i.e. something more than a burned out shack) housing went for. In my county the median house goes for over $1 million.
- Loughla 5y agoThe median home price in Q3 2021 is $404,000. That is shockingly high, but definitely not close to the 1 million figure.
- jdavis703 5y agoAccording to Zillow the median price is $1.018 million in Alameda County. I probably should’ve been more specific in my post since “my county” could be anywhere.
- webinvest 5y agoWhat country is that?
- ineedasername 5y agoAffordable for you (and any US-based millennial with a strong education & job in the tech sector or other high skilled labor) is very different than affordable for the typical millennial, especially ones born in the last 1/3 of that generation that haven't had as much time to work up the salary scale a bit.
- jdavis703 5y agoAssuming 20% down and good credit, the bank will make a loan to someone earning $61,000 a year for that. This is hardly “tech sector” level income, but yeah it also isn’t affordable to the bottom third of millennials either.
- PragmaticPulp 5y agoNot really. Mortgage rates are so low that even with only 5% down the monthly mortgage payments on a $400K house are similar to what someone would be paying for monthly rent in these cities. Mortgage rates are incredibly low and there are a number of options to reduce down payment requirements right now. Meanwhile, wages are up and better paying jobs are more common for young people. $400K isn’t out of reach at all for a lot of first-time home buyers in this economy.
- whimsicalism 5y agoI doubt they are $400k in the city.
- gizdan 5y ago5% is still $20k. When you're living payslip to payslip, even $5k is too much as a deposit is too much.
- ct0 5y agoBut 5% is better than 20% down. Most have the capacity to save but choose not to.
- t-writescode 5y ago5% down on a 400k place is 20k. Sure, I suppose someone earning a normal wage could scrounge together 20k in, let's say, 5-10 years, but then they would use *ALL* of their savings and have no emergency fund anymore, to use that 20k. Further, then you look at all the costs you get hit by when buying a house such as closing, etc, and that 20k turns out to be 28k, so they'll need to save for even more years. And now the house isn't 400k, it's 450 or 500, so instead of 20k, they instead need 25k, and with closing costs, now it's 35k because those went up proportionally, as well.
- gizdan 5y agoAt current minimum wage, saving 20k will take years and years. Most non-tech folks just do not earn enough to save. It's not that they don't want to, or choose not to. It's that they don't have disposible income. 5% is certainly better than 20%, but when you don't have the money, even 1% deposit is too much.
- brendoelfrendo 5y agoMost millennials are in their 30s now, so they're either not typical young first-time buyers or have deferred buying housing until now.