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Here Are The Cities Where Middle-Class Homebuyers Are Screwed
Business Insider ^ | 07/12/2014 | ANDY KIERSZ

Posted on 07/12/2014 10:44:31 AM PDT by SeekAndFind

It's really hard for a middle class family to buy a house along the California coast.

Real estate research and marketplace site Zillow routinely calculates an index of housing affordability. First, they use a proprietary statistical model to estimate housing values in a metropolitan area. Then, they calculate the monthly mortgage payment for a median price house in each metro area. Finally, they calculate the percentage of the median monthly income for each metro area needed to pay that mortgage payment.

For example, Zillow's estimate for the median home price in Abilene, TX during the first quarter of 2014 was $98,600. After a 20% down payment, a homebuyer would need to take out a $78,880 mortgage. Assuming a 30 year fixed rate mortgage at a 4.3% annual interest rate, this would lead to a monthly payment of about $390, which we calculated using Bankrate's mortgage calculator Zillow's estimate for the median annual income in Abilene is $43,058, or a monthly income of about $3,588. Finally, by dividing, we see that the $390 mortgage payment is about 11% of that monthly income.

Here's a map showing Zillow's Q1 2014 housing affordability estimates in 285 of the nation's largest metropolitan areas. Darker regions indicate larger proportions of a median income needed to pay a mortgage on a median value house. The four California cities in which a median mortgage payment is at least 40% of a median income are also indicated by name:

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: affordability; homes; housing; middleclass
RE; Here Are The Cities Where Middle-Class Homebuyers Are Screwed

So, why do people insist on living there? What's the attraction?

1 posted on 07/12/2014 10:44:31 AM PDT by SeekAndFind
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To: SeekAndFind

Are there any places where they’re not?


2 posted on 07/12/2014 10:50:16 AM PDT by Clintonfatigued (The War on Drugs is Big Government statism)
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To: SeekAndFind

As an example, Reading, Pa ha older people who paid off homes and are now paying more for property, school and percapita taxes than what their mortgages were. Conditions are right there with Camden, NJ. “Why not get out of here?” This is HOME. Maybe 30 years ago, no more. My girlfriend is the same exact way. I want to leave this shithole PA but she won’t go.


3 posted on 07/12/2014 10:51:41 AM PDT by Safetgiver ( Islam makes barbarism look genteel.)
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To: SeekAndFind

Nobody is forcing you to live in the failed cities and States.


4 posted on 07/12/2014 10:56:25 AM PDT by sagar
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To: Safetgiver
I want to leave this shithole PA but she won’t go.

Hmmm...
Live in Shithole, Keep Girlfriend
Leave Girlfriend, Git out'ta town

Decisions, Decisions

5 posted on 07/12/2014 11:03:47 AM PDT by HangnJudge
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To: SeekAndFind

The median price of homes currently listed in Marin County is $939,000

Id leave but my daughter and grandson wouldnt care much for that.


6 posted on 07/12/2014 11:10:10 AM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: MeshugeMikey

You could probably buy 3 or 4 nice homes in Dallas for that price...


7 posted on 07/12/2014 11:12:19 AM PDT by SeekAndFind
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To: SeekAndFind
With technology the way it is, I'm surprised more people are not discovering small towns, buying a huge Victorian-style home (instead of the cardboard boxes being built today), and moving their business there (plenty of great workers).

125K buys you a Civil War-era house, already restored, and right in front of main street and the railroad tracks, in sleepy town in NC. It's a registered landmark.

8 posted on 07/12/2014 11:15:05 AM PDT by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: SeekAndFind

to top the median price home mess the number of foreclosures...has jacked up the cost of renting significantly ...as former home owners are now bidding to rent what little is available!

the supply is kept artificially scarce in this county....by the green ploys

no growth.....current supply....prices go through roof....and MANY of those what HAVE ...love that .


9 posted on 07/12/2014 11:15:48 AM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: SeekAndFind

It’s called “Marxism”.

Marx HATED the middle class. He wanted to insure that middle classers couldn’t own property.

You notice that all the states where the middle class are most screwed are blue states?

And the middle class Marxists keep voting for it.

If I was a liberal Democrat, I’d be laughing and crapping on everyone too. :)


10 posted on 07/12/2014 11:16:20 AM PDT by Tzimisce
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To: SeekAndFind

11 posted on 07/12/2014 11:16:24 AM PDT by HangnJudge
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To: SeekAndFind

cause of super high prices... is mostly Chinese (and some other) buying, many all-cash bids and many directly from China (some moving to USA, some not — just putting some of their money outside their local communists’ reach)

demand is not limited to local “American workers”
indeed, in many (mostly higher priced) neighborhoods, demand is almost entirely foreign buying

the more demand, from whatever sources, the higher the prices are pushed up

simple Econ 101


12 posted on 07/12/2014 11:20:09 AM PDT by faithhopecharity ((Brilliant, Profound Tag Line Goes Here, just as soon as I can think of one..))
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To: faithhopecharity

RE: cause of super high prices... is mostly Chinese (and some other) buying

Funny how you’re saying that because my friends in Australia are telling me the same thing...


13 posted on 07/12/2014 11:21:12 AM PDT by SeekAndFind
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To: MeshugeMikey
the supply is kept artificially scarce in this county....by the green ploys

You must live in San Mateo County, or somewhere nearby. I used to live there, and there is a lot of "open space" that is locked up for looking at as you drive past it on I-280.

14 posted on 07/12/2014 11:23:20 AM PDT by Disambiguator (#cornedbeef)
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To: Disambiguator

Marin County...same deal.

theres more open space here ...than anyone could possibly visit in a lifetime

as far a pricey towns...Marin Has Tiburon.....Kenfield,,,,, etc etc

San Mateo....... Burlingame...etc..etc..etc.


15 posted on 07/12/2014 11:27:38 AM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: SeekAndFind

see...

http://www.zerohedge.com/news/2014-07-10/did-china-just-crush-us-housing-market

and
http://sanfrancisco.cbslocal.com/2014/06/01/real-estate-expert-says-china-cash-driving-up-san-francisco-housing/

and

http://www.forbes.com/sites/erincarlyle/2013/12/20/ken-deleon-top-silicon-valley-sales-agent-why-chinese-buyers-love-palo-alto/


16 posted on 07/12/2014 11:28:06 AM PDT by faithhopecharity ((Brilliant, Profound Tag Line Goes Here, just as soon as I can think of one..))
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To: sagar
For some people, their house is paid for or nearly so and if they can sell it at all there won't be much money for it. Certainly not enough to move to a pricier neighborhood. It's not that easy for some of those who are trapped.

For some, the best answer is to stay put as long as they can and accumulate as much money as they can. Then, if it gets so bad they have to move, they'll at least have some financial resources to start over.

17 posted on 07/12/2014 11:35:58 AM PDT by grania
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To: SeekAndFind
On my block:

2 bed, 1 bath, 960 sq ft Single-Family Home, 2355 sq ft lot.

Sold last week for $975,000

Insane.

18 posted on 07/12/2014 11:37:16 AM PDT by Dagnabitt (Amnesty is Treason. Its agents are Traitors.)
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To: HangnJudge
the only place on that chart i'd ever even consider moving to is Charlotte...
19 posted on 07/12/2014 11:37:56 AM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: Safetgiver

All of NJ could be considered an area where the middle class is screwed. Taxes have been high for decades, but decent jobs were plentiful so it was tolerated. Now many good jobs have left, but the government workers are still making money hand over fist. Businesses and young people are fleeing, and the state will most certainly be a destination for many of those “da-me-esos” (gibsmedats) crossing our border now. There are already millions of them here, and soon NJ will be illegals, the permanent unassimilated underclass, and the Anglo administrators to feed, clothe, school, house, and police them.


20 posted on 07/12/2014 11:50:35 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Safetgiver

Well, since she is girl friend and not wife, you are free to go when ever...


21 posted on 07/12/2014 11:55:43 AM PDT by mdmathis6
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To: Salvavida

I wouldn’t live in one, they should be torn down and hauled to the dump!


22 posted on 07/12/2014 11:56:07 AM PDT by dalereed
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To: Chode
The only place on that chart I'd consider moving..

That's just the other side of the media bias coin. They only ever report on the 25 or 50 largest metropolitan areas. The places normal people would consider living are always ignored by the msm, when it comes to stories like this. The media only notice small town America when murder and mayhem are involved.

23 posted on 07/12/2014 12:01:13 PM PDT by j. earl carter
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To: MeshugeMikey

Me and the hubby looked at a nice home in Burlingame years ago, it was going for $53,000.We had to settle for a home in Pacifica for $21,000.as I said YEARS go.
Now I’m in the East Bay barely hanging on and may be headed back to the mid-west somewhere and the kids and grandkids will just have to visit.


24 posted on 07/12/2014 12:03:14 PM PDT by peteyd (A dog may bite you in the ass,but it will never stab you in the back.)
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To: Salvavida

“in sleepy town in NC. It’s a registered landmark. “

Historical landmarks require permission, approval, and higher repair expense as Historical Association has to approve all work....usually liberals.


25 posted on 07/12/2014 12:03:59 PM PDT by Kackikat (ELECTED officials took an OATH...get off your cowardly a$ses and be A PATRIOT now!)
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To: j. earl carter
pretty much...
26 posted on 07/12/2014 12:11:24 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -vvv- NO Pity for the LAZY - 86-44)
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To: peteyd

You know what the No Growth scenario results in....

its all about saving “the planet....../S


27 posted on 07/12/2014 12:20:38 PM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: Dagnabitt

California has high housing prices and lots of ghettos. Solve two problems at once: eliminate housing subsidies and Section 8. The middle class could then gentrify the ghettos and displace the underclass.


28 posted on 07/12/2014 12:21:33 PM PDT by SauronOfMordor (Socialists want YOUR wealth redistributed, never THEIRS!)
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To: SeekAndFind
I wish I could see a conspiracy here but as the real estate maxim goes, location, location, location.

Though it might tweak some here to hear it, the fact remains that the cities of the Northeast and the coastal areas of California are the most desirable places to live in terms of quality of life, climate, career opportunities, access to education and medical facilities, top restaurants, myriad entertainment options, etc. etc.

To live in those areas, you are going to pay top dollar. Unless you want to live in some run-down slum. Of course if you are educated and have a good work ethic, you will have no problem at all earning a six-figure income in those areas and enjoying all the amenities that those areas have to offer.

Now there's nothing wrong with living in "more affordable" areas of the country. But by and large, you are going to be stuck with relatively limited career options. So if making $32k is okay by you and you are fine with eating at Applebees, shopping at Wal-Mart and going to see trucks race in the mud on a Saturday night (because that's the only entertainment available), than you can be happy in those areas and you can find yourself a decent $80,000 house to live in.

I know that saying that can come across as somewhat crass but wanted to make my point.

I know that many here hate the Northeast and coastal California because of the way most people there vote and that they wish those places would fall into the ocean. However, they are the most desirable places to live in the country and a good 40-45 percent of the people living there are conservatives or at least lean that way. They are not all bad people.

29 posted on 07/12/2014 12:56:08 PM PDT by SamAdams76
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To: Kackikat

This isn’t New England. It isn’t federally registered. I should have stated that before.


30 posted on 07/12/2014 1:10:49 PM PDT by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: MeshugeMikey
Marin County...same deal.

I think that counts as nearby.

:^)

31 posted on 07/12/2014 2:17:14 PM PDT by Disambiguator (#cornedbeef)
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To: Salvavida

I live in NC....if it’s just a landmark that’s one thing, if it is on the Historical Register and being monitored by the Historical Association that’s another. Being in New England has nothing to do with what I said.


32 posted on 07/12/2014 3:26:10 PM PDT by Kackikat (ELECTED officials took an OATH...get off your cowardly a$ses and be A PATRIOT now!)
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To: Tzimisce

Karl Marx was a lazy man who may have wanted more, but never did anything practical to get it. The bio I read showed him unable to even feed his family without help. The dust and living conditions were deplorable according to the people who described him in their historical account at the time he lived....Stalin had to implement his manifesto because Marx had not the will or ambition to do so. You can google it online to read about him.


33 posted on 07/12/2014 3:28:57 PM PDT by Kackikat (ELECTED officials took an OATH...get off your cowardly a$ses and be A PATRIOT now!)
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To: SeekAndFind

Wow — Flint & Saginaw have cheaper housing than LA and San Fran? There’s a shocker.


34 posted on 07/12/2014 3:35:17 PM PDT by workerbee (The President of the United States is PUBLIC ENEMY #1)
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To: Kackikat

Congratulations on missing the bigger point: there are cheaper, more livable places than what was mentioned in the article.


35 posted on 07/12/2014 4:28:19 PM PDT by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: SeekAndFind

California has something for everyone - deserts, prairies, mountains, beaches, rivers, farms, forests, lakes - and pot...suburban and urban. We’ve got rodeos, nascar, state fairs that can’t be beat, pro sports, fine arts, more waitresses than you can shake a stick at, gangs and drive-bys and cattle and horsethieves and burglaries, too, and a heavy homeless problem, but hey, it never snows in SoCal ! From Apple Hill orchards to Weed, Calif, to the home of California Chrome at Harris Ranch, there’s still plenty of room to breathe, a heck of a population to sell product to, and we can only be invaded by 3 directions, of which 2 are relatively friendly.

I encourage more Tea Republicans to move to California and take over the political scene with sheer numbers - like the Left loves to do now demographically - and axe the taxes like winter’s firewood.

So after Texas and Arizona fill up, come on over to California and help us turn the state back into a republican stronghold!


36 posted on 07/12/2014 4:29:30 PM PDT by blueplum
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To: Salvavida

I did not miss the point. I did not want people reading your post to think that a historic registered house was a good deal, unless they wanted to have someone, usually liberal, tell them how to repair or remodel their house because they have to pay for it and it’s not cheap.


37 posted on 07/12/2014 4:44:39 PM PDT by Kackikat (ELECTED officials took an OATH...get off your cowardly a$ses and be A PATRIOT now!)
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To: Kackikat
Actually, I personally know the retired Marine Master Sergeant that is doing the remodeling. Yes, there is certain criteria to do the remodeling, but it's reasonable. He totally updated the kitchen and the electricity. If you want his tele number, I'll get it for you.

It's not federal, it's state registered.

This has nothing to do with liberals or conservatives. Some people enjoy these old houses. It's apolitical.

38 posted on 07/12/2014 4:54:20 PM PDT by Salvavida (The restoration of the U.S.A. starts with filling the pews at every Bible-believing church.)
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To: Salvavida

http://www.realtor.com/home-finance/homebuyer-information/buying-an-historic-home-what-you-need-to-know.aspx


39 posted on 07/12/2014 4:58:14 PM PDT by Kackikat (ELECTED officials took an OATH...get off your cowardly a$ses and be A PATRIOT now!)
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To: Disambiguator

“homeowners” at one house in very nearby Ross CA..gave away IPODS for halloween....to one and all who came to their door.. a few halloweens ago...

as far as I know none of their neighbors has been able to top that as yet...

IPODS......Mac Notebooks ...?

even the riff raff around here are well off.


40 posted on 07/12/2014 7:08:01 PM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: MeshugeMikey

Well over here in the East Bay (Contra Costa County) the home across the road from me just sold for something north of $2 million, and it did so in about a month.


41 posted on 07/12/2014 8:38:30 PM PDT by vette6387
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To: vette6387

Yep its the Bay Area’s No Growth..BONANZA

economic growth...via pumping up the prices by keeping the supply as low as possible.

The east bay is huge by any standards so too often I think of it as western Alameda county.....aka Oakland Berkeley albany...etc..etc.

I used to know a guy who bought a tiny house way up near the peak...on Mt Tamalpais for 5K...back several decades ago. no telling what its worth these days


42 posted on 07/12/2014 8:43:11 PM PDT by MeshugeMikey ( "Never, never, never give up". Winston Churchill ...)
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To: vette6387

My wife and I are currently remodeling her mom’s house in SF. It was in disrepair, no work having been done on it in 60 years. A house about 5 homes up the block went on the market this year for $2.4 million. No way, we thought. It sold within a few weeks. This in the Glen Park neighborhood, formerly a blue-collar working man district but now a tony area for well-to-do. Forty years ago homes sold there in the low $30-thousands. It’s true that Chinese buyers are coming in with cash offers, real crazy. Many of the long-time owners can’t keep up with costs and have moved away and cashed out. New buyers come in and are upgrading like crazy. My wife’s family were there from early 1950s, one of the last old-time owners.


43 posted on 07/12/2014 11:26:21 PM PDT by roadcat
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To: roadcat

“This in the Glen Park neighborhood, formerly a blue-collar working man district but now a tony area for well-to-do. Forty years ago homes sold there in the low $30-thousands.”

In the 70’s, I worked on Jerrold Avenue. (Produce Market Area, but not in produce). Used to take a walk out to Glenn Park on occasion when I needed BART (16th St. was not a good place to go then). I guess I should not be surprised about home prices there now, but it was, as you say a blue collar neighborhood. Back then, you needed to go on out to St. Francis Woods or West Portal to find expensive homes. But then look at Potrero Hill, they used to find dead bodies there, but now it’s also expensive real estate.


44 posted on 07/13/2014 4:37:44 AM PDT by vette6387
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To: mdmathis6

I got honor, not much patience or understanding.


45 posted on 07/13/2014 10:00:52 AM PDT by Safetgiver ( Islam makes barbarism look genteel.)
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To: vette6387
But then look at Potrero Hill, they used to find dead bodies there, but now it’s also expensive real estate.

It's happened all over SF, except the core of Hunter's Point/Bayview district. Back in the 1960s my mom worked as a manager in the Rio theater on Union Street near Fillmore. That was a blue collar neighborhood of victorian homes and just a few stores and two theaters. In the 1970s tony stores set up shop and Union Street became the place for well-to-do to shop. In the 1970s I worked in Civic Center, and you didn't dare go west of Van Ness Avenue beyond City Hall because of all the dope addicts and hold-up robbers. After the 1989 earthquake and demolishing of the skyway, it got gentrified and went upscale. Clement Street was a quiet area, and became the new Chinatown.

I used to go to elementary school on Potrero Hill, was bused into that black neighborhood and hated it, was scared to be there. As you say, it went upscale - all the blacks moved away and ritzy stores moved in. What people don't understand, is that it's normal for change to occur. Some towns grow and change for the better, and some towns die (Detroit is a current example).

SF was just lucky to be positioned near beneficial job growth. Mediteranean-type weather, calm weather port, focal point for the gold and silver rush, shipbuilding for wars and staging for the military, west endpoint of the continental railroad, port for central valley produce, large universities know world-wide, nuclear research, Silicon Valley technology growth, genetics research, the list goes on and on. And people wonder why anyone would want to live here. Follow the money.

46 posted on 07/13/2014 11:29:01 AM PDT by roadcat
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