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 ...
So, why do people insist on living there? What's the attraction?
Are there any places where they’re not?
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.
Nobody is forcing you to live in the failed cities and States.
Hmmm...
Live in Shithole, Keep Girlfriend
Leave Girlfriend, Git out'ta town
Decisions, Decisions
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.
You could probably buy 3 or 4 nice homes in Dallas for that price...
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.
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 .
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. :)
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
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...
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.
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.
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.
2 bed, 1 bath, 960 sq ft Single-Family Home, 2355 sq ft lot.
Sold last week for $975,000
Insane.
the only place on that chart i'd ever even consider moving to is Charlotte...
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.
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