cross-posted from: https://lemmy.ml/post/10623652

TL;DR: Americans now need to make $120K a year to afford a typical middle-class life and qualify to purchase a home. Minimum.

  • sugar_in_your_tea@sh.itjust.works
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    10 months ago

    People aren’t likely to buy a typical middle class home as their first house, they’ll usually start in a starter home/townhouse and then upgrade as their family gets bigger. By that point, their house will have appreciated and they’ll have built some equity, meaning they can afford a larger house than if they had been renting.

    So while the math may be correct given the inputs, I think the inputs don’t make sense for most people.

    It’s probably okay to stretch a bit (say, 40-50% of income) on the first home, since income will likely increase and the payments will stay mostly flat. Just don’t expect to buy a new house, new car, and new furniture all within the first 5-ish years.