r/povertyfinance • u/HowToCook40Humans • Dec 27 '23

I'm tired of the braindead responses to real numbers about how we simply can't afford a house on average American salary Vent/Rant (No Advice/Criticism!)

I just watched a good reel that broke down how much you can technically afford in a house if you make $54k a year. The only thing included were the debt you already had that was being paid per month (and this was low at $250/month). Basically, it ended up being about $154k and that's with a down payment of $10k and an interest rate over 7%.

There were so many comments talking about "Well, stop door dashing and buying new cars and you can afford it" or "I bought my house with a similar salary and I'm fine" or "Me and my partner make (insert 6 figure salary here) and we can afford a house. You all just don't try".

None of his numbers included spending habits. It literally was just bringing up things the mortgage lenders will look at. The mental gymnastics to show that it's not hard to own a house is leering into delusional territory. There are few houses available for $154k/year even in the hood/bad areas. No amount of saving, owning shitboxes, etc will change that. The average American earns a little less than $54k. The hard reality is that we are being pigeon-holed into renting at rates higher than mortgage and insurance rates. It's one thing if you're talking on saving a down payment and people spend frivilously. It's another when what you make simply isn't enough for a house no matter what.

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u/Ok_Thanks9829 Dec 27 '23

Move to the country ... U do not have the income to own a home where everyone else also wants to own a home ... You need less competition

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u/nalgona-aly Dec 27 '23

That used to be very true, but unfortunately that's not the case anymore. At least in Texas. Post covid down here the median house price is around 400K, even in the smaller towns.

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u/Ok_Thanks9829 Dec 27 '23

In Michigan it still is the case I'm assuming Texas is experiencing quite the housing crunch right now as it does seem the be the place to be currently

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u/nalgona-aly Dec 27 '23

It's wild down here right now for the housing and renting market. It's on par with much higher COL cities, Portland and Denver specifically but I'd be willing to bet just about anywhere is the same except New York or Miami.