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90th percentile US individual income is 130k. Median house is around 440. You can afford a 440k house on 130k income, even if you have a small amount of other d
by colinmhayes 4y ago
90th percentile US individual income is 130k. Median house is around 440. You can afford a 440k house on 130k income, even if you have a small amount of other debt.
- ramesh31 4y ago>Median house is around 440. You can afford a 440k house on 130k income, even if you have a small amount of other debt. That's a $3500 monthly housing payment with taxes, PMI, insurance, and 5% down. I bring home $7k net/month. So that would be a 50% monthly housing payment for a 90th percentile income to purchase a median priced home. And that's even if I had the $30-40k cash in the first place to close on the loan, which is impossible to save due to rent, healthcare, transportation, and food costs going through the roof. I seriously have no idea how people are even surviving on 50/60/70k salaries at this point.
- alkonaut 4y agoAren’t houses normally bought (and therefore priced) by two income households?
- colinmhayes 4y agoI think the issue is more that you can't save the 100ish thousand needed to avoid pmi. Assuming you live in the a HCOL area that's understandable. I live in Chicago and am spending 25k a year since my total housing costs come out to less than 1k a month, so I'm already halfway to saving the down payment after just a year. If you don't want roommates than you should be looking at household income, for which 90th percentile is 200k, making a 440k house pretty easy to afford.