4 ms·

$1 in 1981 is equivalent in purchasing power to about $3.22 today: https://www.in2013dollars.com/us/inflation/1981?amount=1 https://www.in2013dollars.com/us/inf

by ttpphd 4y ago

$1 in 1981 is equivalent in purchasing power to about $3.22 today: https://www.in2013dollars.com/us/inflation/1981?amount=1 https://www.in2013dollars.com/us/inflation/1981?amount=1 2 incomes * 6 dollars/hr * 3.22 = 38.64 dollars/hr household 65,000 * 3.22 = 209,300

al_borland 4y ago
It looks like that would mean about $4k/month after tax [0]. Putting 20% down to avoid PMI would lead to a payment of $1,192, using this calculator [1]. $1,192 / $4,024 = 29.6% That comes in just under 30% of net pay. The standard rule of thumb is to be less than 33% of gross pay. $1,192 / $5,417 = 22% Personally, I prefer using net pay, since that's what you actually have to spend and it's always good to have more room in the budget. These numbers don't seem unreasonable, and the median household income in 2020 was $67,521 [2], and nearly half the states have a median home price at this price or lower [3]. Here is median income by state as well [4], those in the middle are also around the $65k area to align with the homes in the middle around the $205k area... so it all kind of lines up if people aren't obsessed with leaving on a coast. This makes it seem like things haven't changed as much as people keep saying. [0] https://smartasset.com/taxes/paycheck-calculator#UIjlp8sv2w https://smartasset.com/taxes/paycheck-calculator#UIjlp8sv2w [1] https://www.mortgagecalculator.org https://www.mortgagecalculator.org [2] https://www.census.gov/library/publications/2021/demo/p60-273.html https://www.census.gov/library/publications/2021/demo/p60-27... [3] https://en.wikipedia.org/wiki/List_of_U.S._states_by_median_home_price https://en.wikipedia.org/wiki/List_of_U.S._states_by_median_... [4] https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_income https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ...

by ttpphd 4y ago

al_borland 4y ago

It looks like that would mean about $4k/month after tax [0]. Putting 20% down to avoid PMI would lead to a payment of $1,192, using this calculator [1]. $1,192 / $4,024 = 29.6% That comes in just under 30% of net pay. The standard rule of thumb is to be less than 33% of gross pay. $1,192 / $5,417 = 22% Personally, I prefer using net pay, since that's what you actually have to spend and it's always good to have more room in the budget. These numbers don't seem unreasonable, and the median household income in 2020 was $67,521 [2], and nearly half the states have a median home price at this price or lower [3]. Here is median income by state as well [4], those in the middle are also around the $65k area to align with the homes in the middle around the $205k area... so it all kind of lines up if people aren't obsessed with leaving on a coast. This makes it seem like things haven't changed as much as people keep saying. [0] https://smartasset.com/taxes/paycheck-calculator#UIjlp8sv2w https://smartasset.com/taxes/paycheck-calculator#UIjlp8sv2w [1] https://www.mortgagecalculator.org https://www.mortgagecalculator.org [2] https://www.census.gov/library/publications/2021/demo/p60-273.html https://www.census.gov/library/publications/2021/demo/p60-27... [3] https://en.wikipedia.org/wiki/List_of_U.S._states_by_median_home_price https://en.wikipedia.org/wiki/List_of_U.S._states_by_median_... [4] https://en.wikipedia.org/wiki/List_of_U.S._states_and_territories_by_income https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ...