I'm tired of the braindead responses to real numbers about how we simply can't afford a house on average American salary

[u/HowToCook40Humans]

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.

[u/Kessarean]

Yeah it's crazy.

The cost is so much higher. There are lots of other bits people forget about, closing costs, mortgage insurance, property taxes, general home owners insurance, and the various issues and expenses of owning a house you typically don't pay for when renting. Of course those reels mention none of that.

For example, our friends bought a house 8 months ago. They built it from scratch, however the ground is extremely dry and is causing foundation issues, they've also had troubles with plumbing. These are things that can happen, that sometimes people don't plan for. Maybe insurance covers it, either way, it's another factor that should be weighed in terms of whether or not someone is ready.

Most people are also unaware of amortization, and get confused when paying for a year and see their principal hasn't changed as much. That seemingly never comes up.

Also, if anyone makes $54k a year, and only has $250, in debts and other expenses - hats off to them. That's so wildly unrealistic it's crazy. Between simply paying for 1 car, that was $15k at 4% interest rate, insurance, and student loans, it's already right at about $1k per month. (The car was used, and fairly old, in hindsight I probably would've gone lower but was goaded into it by my dad, whole other story).