3 ms·

I'm not so sure: At current rates, assuming excellent credit, that's about $1700/month. If you're anywhere near the suburbs of a city, you can add another $500

I'm not so sure: At current rates, assuming excellent credit, that's about $1700/month. If you're anywhere near the suburbs of a city, you can add another $500 to $1500/month in property taxes, and sometimes another $100 to $400/month in HOA fees. on that for a total pre-utility rate of ~$2400-$3600/month or roughly $30k to $43/ year. I live in the higher end of that range even though I'm in a modest home in a lower-middle class town, in an area where the median household income is about $50k. before taxes. $400k on a house is simply impossible for many millennials, especially those born towards the end of the millennial generation that haven't had more time to establish themselves and work up the salary scale a bit.

BizarroLand 5y ago
I think you're overlooking married millennials, many of whom are in their late 20's-late 30's and many of whom have no children, and many of whom are two-income families. A $400k home would be quite affordable if each of them were earning an average of $24/hr or more, which isn't too crazy.
- gizdan 5y ago
  What the sibling comment said, but also, the minimum wage is still $7.25, with some companies only now pushing this up to ~$15. For many, including married couples, $24 an hour is a pipedream.
- t-writescode 5y ago
  I, singularly, make far more than $48/hour ( which is 96k / year ); and, a 400k home is barely in _my_ price range, with the HOA and property taxes included.
PragmaticPulp 5y ago
> If you're anywhere near the suburbs of a city, you can add another $500 to $1500/month in property taxes, $1500/month property taxes would be $18,000 per year. On a $400K home that would be 4.5%, which is significantly more than you'd find anywhere in the United States. The average property tax rate in the US is around 1.1%. Moreover, most locations have an exclusion for the first $XXX,000 of home value. For example, a city might tax the first $100,000 of home value at 0% and then only apply the 1.1% rate (using the average here) to the remaining $300K. Assuming a $100K home value exclusion and a 1.1% rate (average national rate), that comes to $275/month, which is about half of the lower end of the range you quoted and nowhere near the $1500/month upper end of your range. Also, $400/month HOA fees would be several times higher than the average. HOAs aren't actually as common as the internet suggests, but when you get into an HOA in a neighborhood with $400K houses, you're probably going to be paying more like $100-150/month, not $400/month. > $400k on a house is simply impossible for many millennials Sure, but so is $2K/month rent. I never suggested that every millennial can afford a $400K house, but rather that it's not an impossible reach for many millennials. This is especially true for married millennials who haven't had children yet. I think too many people focus on the idea of the single millennial purchasing a home on a single income and living there alone, but in practice it's usually people getting married and settling down somewhere together on two incomes.

BizarroLand 5y ago

I think you're overlooking married millennials, many of whom are in their late 20's-late 30's and many of whom have no children, and many of whom are two-income families. A $400k home would be quite affordable if each of them were earning an average of $24/hr or more, which isn't too crazy.

gizdan 5y ago
What the sibling comment said, but also, the minimum wage is still $7.25, with some companies only now pushing this up to ~$15. For many, including married couples, $24 an hour is a pipedream.
t-writescode 5y ago
I, singularly, make far more than $48/hour ( which is 96k / year ); and, a 400k home is barely in _my_ price range, with the HOA and property taxes included.

PragmaticPulp 5y ago

> If you're anywhere near the suburbs of a city, you can add another $500 to $1500/month in property taxes, $1500/month property taxes would be $18,000 per year. On a $400K home that would be 4.5%, which is significantly more than you'd find anywhere in the United States. The average property tax rate in the US is around 1.1%. Moreover, most locations have an exclusion for the first $XXX,000 of home value. For example, a city might tax the first $100,000 of home value at 0% and then only apply the 1.1% rate (using the average here) to the remaining $300K. Assuming a $100K home value exclusion and a 1.1% rate (average national rate), that comes to $275/month, which is about half of the lower end of the range you quoted and nowhere near the $1500/month upper end of your range. Also, $400/month HOA fees would be several times higher than the average. HOAs aren't actually as common as the internet suggests, but when you get into an HOA in a neighborhood with $400K houses, you're probably going to be paying more like $100-150/month, not $400/month. > $400k on a house is simply impossible for many millennials Sure, but so is $2K/month rent. I never suggested that every millennial can afford a $400K house, but rather that it's not an impossible reach for many millennials. This is especially true for married millennials who haven't had children yet. I think too many people focus on the idea of the single millennial purchasing a home on a single income and living there alone, but in practice it's usually people getting married and settling down somewhere together on two incomes.