2 ms·

I'm a single person who bought a house for himself. ... definitely a minority situation, though. Did a dig, though: "The latest number is considered unafford

I'm a single person who bought a house for himself. ... definitely a minority situation, though. Did a dig, though: "The latest number is considered unaffordable by common lending standards, which call for a 28 percent debt-to-income ratio." (From the sauce: https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q3-2023-u-s-home-affordability-report/ https://www.attomdata.com/news/market-trends/home-sales-pric...) This is apparently a common metric? First I've ever heard of it, personally.

agloe_dreams 3y ago
Yes, common. Additionally, most americans cannot afford a car payment under 10% of their take home monthly income. But most people do not actually follow this advice, which makes the situation worse. The fact of the matter is that the take home pay for someone making $40K is ~2,300. 10% is $230/mo, which you cant even get a lease for anymore...But people need cars, so they are overleveraged.
- nickthegreek 3y ago
  This is why 84-month auto loans are now a thing that more and more people are signing up for. Which wasn't too much of a concern with low interest rates... but now?
- sofixa 3y ago
  > But people need cars, so they are overleveraged. Which is a massive issue in itself too. In many parts of the US and Canada a car is necessary for daily life, so everyone is forced to spend non-insignificant amounts of money on one or multiple cars, which is very wasteful.
legitster 3y ago
Wow, the actual report is much different than the CBS headline! > Home Affordability Report showing that median-priced single-family homes and condos are less affordable in the third quarter of 2023 compared to historical averages in 99 percent of counties around the nation with enough data to analyze. The actual report is saying that 99% of counties have worse affordability. Not that 99% are unaffordable.
deleted 3y ago
[deleted]

agloe_dreams 3y ago

Yes, common. Additionally, most americans cannot afford a car payment under 10% of their take home monthly income. But most people do not actually follow this advice, which makes the situation worse. The fact of the matter is that the take home pay for someone making $40K is ~2,300. 10% is $230/mo, which you cant even get a lease for anymore...But people need cars, so they are overleveraged.

nickthegreek 3y ago
This is why 84-month auto loans are now a thing that more and more people are signing up for. Which wasn't too much of a concern with low interest rates... but now?
sofixa 3y ago
> But people need cars, so they are overleveraged. Which is a massive issue in itself too. In many parts of the US and Canada a car is necessary for daily life, so everyone is forced to spend non-insignificant amounts of money on one or multiple cars, which is very wasteful.

legitster 3y ago

Wow, the actual report is much different than the CBS headline! > Home Affordability Report showing that median-priced single-family homes and condos are less affordable in the third quarter of 2023 compared to historical averages in 99 percent of counties around the nation with enough data to analyze. The actual report is saying that 99% of counties have worse affordability. Not that 99% are unaffordable.

deleted 3y ago

[deleted]