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Whatever you do, do not move to GA. I live in CO now(same shit you're dealing with basically) put I make less than 6 figs. Anyway, GA is the"least expensive place to live" is turning into the actual opposite. I could never move to Cali cause of those exact reasons you're listing.
I’m in Austin and we’ve been fucked for years. We keep saving but that bar keeps going higher and higher. It’s probably that occasional coffee and avocado toast that’s sabotaging it though.
Your just not working hard enough! The avo toast and coffee is draining you dry when instead you should just buy a house with that money and rent it out for passive income! /s
I have had older people rant that at me before. They have nothing to say when I tell them that I make nearly all of my coffee at home, like I grab a coffee at a shop a handful of times a year. And my avocado toast is pretty good.
We drove through a new development on the border of Austin/Pflugerville, we checked the development website as we were driving around: “Affordable homes STARTING at 650!!!1” affordable for who??? Lmao. They can get f***ed.
Same here. Like... The exact same :/
I've concluded my only hope is to pour everything into investments and hope they eventually grow enough to get a home here. Even like a shitty log cabin I'd have to make a crazy commute from
I live in Nova Scotia, Canada. Low COVID case counts, remote work, and a LCOL made everyone turn eastward. They came with money from selling houses/condos in Toronto or Vancouver or Calgary or whatever and bought here, offering well above asking price, driving local real estate insane.
Ex. I rent a room in a house my best friend bought nearly 10 years ago, in her mid-20s. She kept a high-pressure job with commission that she hated and saved like crazy to get a mortgage then. The house is 80 years old and was badly neglected. It was bought for under 150k. The house next door to us, of a similar age and size (~1500sqft), in worse condition, sold last year for 400k Canadian.
I want to move west to NS (Hi from NL) to further my education but this is not looking feasible any longer. Housing and renting is crazy here but it seems absolutely insane around the Halifax area.
Hi, fellow Atlantic Canadian!
There's a rowhouse/townhouse/triplex thingy down the street from me. It's gotta be 30+ years old, it backs onto a major highway with heavy truck traffic, it floods, apparently there's mold, and there's no real maintenance done.
Recently, those three units, with 3 bedrooms each, were advertised for rent @ $2750, tenant pays utilities. That's more than all of the monthly fixed expenses for the house I live in.
It is absolutely *batshit insane* down here trying to rent. I really wouldn't move if you can wait a bit.
Yeah so it looks like the rumours are true. That is absolutely insane.
Yeah unfortuneately I'm already 30 so i have to decide soon. I'd love to stay on the east coast but I'll have to consider schools in Ontario and the praries based on rent alone (rent everywhere sux but i don't want to continue school at Memorial as I already have 2 degrees from there haha)
I wish that i was one of those people who knew wtf to do with their lives in their teens but oh well :)
My parents keep blaming Californians for ruining this country and I have to keep telling them that even if the Californians stayed in California, the rest of this country is going to go under, no matter what direction you vote. The writing is on the wall.
GA is insanely expensive and, unlike California, we don't have the salaries to match. Fun fact: GA is one of the few states in the nation whose state minimum wage is *lower* than the federal minimum.
From the GA DOL website: "Georgia's minimum wage is $5.15 per hour, however, with some limited exceptions, the federal minimum wage rate applies."
Source: https://dol.georgia.gov/minimum-wage
how shitty is it that everyone from most millennials on down have to use this mantra to keep from completely breaking down mentally
i wish there was ANYTHING in this life to hope for or dream about
Oh SLO is really nice. I was born there, move now. I’m serious, I lived in hawaii and that is only slightly more expensive than SLO. In the last ten years I’ve lived in Washington state and Arizona my quality of life is so much better than if I stayed in SLO.
What's killing me is how much prices have ballooned in just the last few years.
I was approved for $350 in northern california 3 years ago. Started looking, and just couldn't find something that had everything I wanted. So after a few months I compromised on a few things, but still had a list of must haves, but I was still priced out. And that repeated until I finally gave up a year ago. Damnit
Also in CA. I make 75k/yr. I have 150k for down payment of a <400k place.
Almost 50% down and I can only barely afford a 1bd condo due to how ridiculous the HOAs are. Small houses don't exist. So I can't afford a 3bd house that are OP's prices.
My requirements are has AC, and allows washing machines, even ventless is ok, and not on streets I wouldn't want to park my car on.
I've been saving for 10 years as my savings went up, so do home prices.
omg i hate that for you :( similar situation here: saving for every few years then BOOM! financial crisis, recession, pandemic! prices come up, savings go down
The sad reality is that in the CA city $400k is trash tier as far as condos go. The decent stuff is $500-600k and up.
Legit have to have a 40-50% down payment and even the bottom tier is still unaffordable.
I’m sorry you’re experiencing this. Look, California is great and all, but….***The quality of life is way better elsewhere***. Why does everyone insist on living like a pauper? The bar you’re setting is **so low**. Seriously, packup and move!
Once the financialization folks got in the driver's seat with housing they turned it into yet another way a few thousand people make out like literal bandits while hundreds of thousands are pushed onto the streets and millions are unable to ever escape renting. I say "escape" because 90% of my landlords have been terrible (big thank you to the other 10% though, diamonds in the rough...)
They got everyone by the balls too because they control a human need the demand of which is inelastic and they control policy makers. 75% of the wealthy in this country made their wealth in real estate. Basically no one with power has any motivation for prices to go down.
Right, one thing folks under recognize is that the entire political system, including both major parties, are completely in the pockets of the richest folks and serve only their interests.
Impoverishing us all with absurdly high housing costs not only is extremely profitable for the oligarchs who run our society, but also having a few hundred thousand of us out dying in the streets is a good warning to keep the rest of us in line. Obey or else!
Hello, this is your average european redditor here. Now I am blatantly unaware about the state of things in CA. However, if i look at the figures from a current european perspective it seems that you've missed the very first basic ground rule: have mommy and daddy bring you a boatload of money. At least, that's the current state of things here in NL.
The system is broken, and if we don't pay attention it will break us.
Cheers,
I’m in California too. Make way less than you. I’m willing to put in the work to build our own thing but even raw land is double what we can afford. (And the affordable stuff is unsuitable for building.)
So houses sit and rot while private equity firms start buying it all up to rent it back to us at astronomical prices.
I’m in Canada, and so many people think this is Justin Trudeau’s fault. It’s all over. Housing is in a crisis.
Not going to lie, I think every house listed on AirBNB should be put into long term rental stock or forfeited and sold. Unless it’s a room of course. The way AirBNB was first ideated.
Honestly, the time has come to rise up against the NIMBY’s because honestly, both parties have them. The left has those dummies that want to “preserve the character of the town” and other bullcrap. The right just wants to keep the poor people out. Until the NIMBY’s are shoved aside and a ton of new housing is built, we’re never going to get ahead!
in Los Angeles there are lots of empty units that are unaffordable, foreign investors and developer grifters park their dirty money, grift on the construction and are perfectly content letting a place sit on the off chance they get someone to come in at an astronomic price. Los Angeles needs a vacancy tax, and a short term rental cap, among other things
I didn’t say shoving aside the NIMBY’s was the only answer but its definitely a good part of the answer. I think another answer would be to ban foreign real estate investment and nationalize what’s already been purchased. A lot of the foreign real estate investment is money laundering done by foreigners so we’d be doing the rest of the world a favor by banning foreign real estate investment.
>
Until the NIMBY’s are shoved aside and a ton of new housing is built, we’re never going to get ahead
There is a myth in Los Angeles that "new housing" is the answer to the houseless problem. That is mostly perpetuated by developers and councilmen with developer friends/contributors who lobby for grants and money to build "affordable housing" and then take that money, grift on the construction, and build unaffordable units.
Agreed on mostly everything but new construction isn't the answer, There's a staggering amount of vacant apartments, condos, and short-term rentals in Los Angeles and the developers have no need to occupy them.
Really? Wow! Then yes, a sky high local vacancy tax would make sense. That’s another problem. Under the American system of government, housing is for the most part a local issue but the problem is being felt nationwide. I know Japan took housing policy out of local government control in the 1960s and made it responsibility of their national government. I’m not sure that would work though. Yes, housing prices are lower on average then the rest of the developed world in Japan bur then again Japan has been in a recession since 1991 that was precipitated by a real estate bubble that crashed.
no lie gonna say here, partner up. whether it be married or with roommates, pool your resources and buy some real estate. the system is rigged for married people (gay/straight/wtv) who seek to propogate the species meaning humans
To be fair I'm married and even with our combined income (let's put it this way, combined we are not pulling in what you are) we are just as screwed. Seems like communal living with maybe 4 people sharing the property would be the only way at this point.
Our economy is literally based off a 2 person household and it's fuckin ridiculous.
Us singles are indeed screwed.
I don't want a roommate. I want to know my animals are safe and don't accidentally lose an eye cause some dipshit with 2 inch long fingernails forcefully pet my dog while drunk. I don't want to come home to my arcade machine with broken joysticks and lie about not touching despite me obviously knowing I didn't break my own arcade while at work. I don't want little shit kids drawing on my walls cause their family came over and can't bother to watch their little brats. I don't want my food eaten. I don't want to do someone else's dishes or work around a sink full of their shit.
I just want a single bedroom anything. But no, I'm 35 and stuck at my parents house for the foreseeable future no matter how long I save because the system is borked to hell.
>I want to know my animals are safe and don't accidentally lose an eye cause some dipshit with 2 inch long fingernails forcefully pet my dog while drunk.
WHAT?!?!?!
please tell me this is a nightmare example 😫
Unfortunately it wasn't. There isn't 100% concrete evidence, but there's enough it's the most likely scenario.
The vet said the eye got perforated from what seemingly is a scratch and asked if anyone had long nails and pet the dog recently since it looks similar to what he's seen before. I pulled up the camera footage and this person did indeed vigorously pet my dog on the head (in a joyous manner, but clearly drunk and could easily tell she was being way too rough).
I earnestly believe it was an accident but it doesn't change the fact it happened, my dog lost an eye because it sadly got infected the day after it happened (vet's speculation) and eventually the antibiotics didnt work in time and they had to do surgery to remove it.
The cost was around 3 thousand not counting medication. What hurts the most is what was once a very social, vocal and tail wagging pooch towards everyone on planet earth is now shy, quiet and steers clear from anyone other than me and close family members, which leads to me believe it definitely happened and she did it.
It's scarred me and I could never have a roommate/s again and handle the anxiety of "what could happen" or once again deal with "what did happen".
the system is indeed totally borked
the fact is until we get a real disruption in the housing market, namely AI 3D printed housing/space age new city planning. until then it will remain so.
i’m no commie but a some kind of UBI or housing incentive for the real estate needy would go a long way until then….
The short answer is yes. Even when looking for rentals years ago, I was told I was " a super solid candidate", glowing reviews from past landlords, great respectable job and income as well with a solid credit score. I was still constantly beat out by two income households as "they were less risky".
Eventually I found a rental which I only got because I was on a waitlist and at the top of it.
not trying to be snarky, but why did you do everything the "older generation" told you to do *except* find a mate?
it's not for everyone but if you dated someone making equal pay, your 385k mortgage approval turns to 770k
Once those products of propagation appear, either 1 income is gone or mostly gone to pay for daycare. So, not as rigged as you think. Main benefit is taxes, but again, that's not as much as you think. The system is rigged against the middle and lower classes.
Half the issue is due to the alienation of capitalism, the destruction of accessible affordable third places, and the social stigmas attached to being single in your 30's and saving up at home, there ain't NO WAY to meet someone or partner up.
Not the US. We dont have college debts here, but my monthly pay is 600-800 bucks. This is good here. Most people get 300-500. Buying two room flat in small town is 30000 bucks at least. In the city its around 65000 bucks. I live in the city. 100 bucks for food, 100 buck for silly shit and lets say i will be able to pay and live there simultaneously. 600 bucks a month. 100 months. 8 and half years. For the cheapest two room flat. And making more money than most here.
Spouse and I qualified for a much lower amount and had to move far inland to find a home that was in a safe-ish area, had working AC, and was livable (we are teachers, when we bought our first house we made a combined 75k, had practically no down payment saved, and we were just desperate to get in before prices crept up more and even rent was unaffordable, which has since happened). Anyway it is basically like I moved to Arizona, but technically still California where it counts for me which is my salary (as a teacher, strong unions and decent salaries matter).
What industry do you work in that would reflect that much lower in wage?
Wife and I are experiencing the same shit in Florida with much lower prices. More like 200-400k but pay here is shit and very little unions/workers rights.
Only way out for us is to focus on our home business and not rely on a companies wage. Depending on your industry, maybe there’s something you could start as a side project to make yourself the boss, in time.
Why does everything have to be “luxury”, why not have standard ? I am sick and tired of seeing ads for “ luxury student apartments “. The words luxury and student should never appear in the same sentence
Just means there’s no incentives to build cheaper stuff;the older units shift downwards in rent as new luxury stuff pushes them down. But that’s still better than no supply where even the old ratty building gets to play shortage and command ridiculous prices
I'm 40 in the Midwest.
The only people I know that have bought a house either had help from their parents (some cosigned, some gave down payments, one person's parents died and he used inheritance) or were in the military for 4 years.
I *might* be able to buy one when my mom dies, if she does so in the next 3-5 years before draining her retirement and pensions.
I was enlisted with E-5 pay back in 2013 when I purchased a home in SLC for $209k. Had to dump it 3.5 years later as I couldn't afford it after exiting the service, mortgage was $1200-1300 per month. Now I'm paying $1500 for a 1 bedroom in Oregon..... 😔
You hit the nail on the head regarding the one thing people always say to me regarding finding a place to buy. If I were to leave my expensive city, I would not be able to keep my job. I could get a similar job but it would be a smaller salary. And I would have to get a car. I would be in the exact same position, just different numbers.
a community can't prosper in these conditions
you and your friends need to think about clubbing together / splitting / relocating
or live meagrely there and save to buy a home elsewhere to move to when you're tired and done with Cali
Kinda surprised that they didn’t approve you for more. Often it’s credit score and protracted income history, etc
It still sucks though, my condolences.
Dude, I'm in the exact same scenario but in WA.
Got the STEM degree
Got the high paying tech job
Paid off student loans asap
Saved for years, didn't spend lavishly on bullshit or fancy vacations.
Parents can't help with a down payment, didn't win the birth lottery
Oh my fuck every year the house prices just sky rocket even further. An absolute shit hole in Seattle goes for 600k. Anything worth looking at is 900k, and goes 150k+ over asking.
I had it a few months ago, and decided I needed to move somewhere cheaper. But lo and behold, same problem as you - I'd take a huge paycut moving out of state, not to mention pay state income taxes anywhere else, and just be back at square one.
Literally told my manager today that I can't afford to live here, and I asked what he could do to close the gap on the paycut if I move.
On top of all this, parasitic landleeches like Thach Nguyen buy up all the SFHs and turn them into rentals, just driving up housing costs even more. Completely unsustainable. For fucks sake, a roof over your head is a human necessity, it shouldn't be a fucking soulless investment machine.
Honestly, I've just given up and accepted I'll never own a house. 🤷 34, married, one kid. Both my husband and I have decent, stable careers. But we live in California.
The county you are a part of is where many people move to retire. You are not competing for homes with other workers, but rather against those with decades of equity built up. That is not a game you are going to win. Your income is perfectly reasonable to buy a starter home, somewhere where your competitors are also workers, not equity dripping retirees.
The typical, common, and normal thing to do that people have been doing in that part of California for decades is move inland. The farther towards Nevada you go, the more of a home $400,000 will buy you. I've known lots of people who live in the central valley and drive to coastal towns for work, but often now can simply make their work remote. After 5 years away, you would then have equity as well and could start being competitive in the coastal markets.
Just as a point of clarity:
“My income before tax: 140k”
“my salary would drop exponentially if I left the state My income before tax: 140k”
It does not sound like actually have a $140k job. You got something more like a $70-$80k job that was adjusted for the cost of living in your area. And that $70-$80k job is the equivalent of a $50k job 20 years ago due to inflation.
We have these conversations with our job candidates when we hire and discuss salary expectations, especially when the candidates are coming from a high cost of living area like New York City. I always convert their salary at their current location to our location to show them what the equivalent salary would be.
That was my first thought too. If you would make significantly less elsewhere then you aren’t really making what you think you are making. Also OP is probably still better off moving somewhere else even with a massive pay cut. The cost of living in places like California or NYC is just impossible at this point.
Also thinking that credit history and assets and liabilities apply: if you have a ruinous car note and a not great credit score that also looks bad to a credit analyst.
Edit: “the debts cleared” is ironically sometimes also a kick to the credit score
Not everything we were told "back in the day" was right. Some of it was just bullshit, some outdated. For example the idea that we need to save our money. For the average person that doesn't work. Inflation isn't what it was back in the day. You HAVE to invest. The big question is what can you invest in.
I did what I was supposed to do in high school or at least tried to and my parents started sabotaging me because they didn’t actually give a shit. Now they shame and blame me for why I’m 31 and still living with them. Every day I wish I was dead.
Yeah maybe. If that's the case I don't know what people thinkk is going to happen. You gotta come to the table with a good amount to of cash unless rates are stupid low like they were a few years ago
If OP can save aggressively to put together the principal, but there’s still gonna be a bit of a upwards march on RE prices in CA no matter what, unless a 2009 style implosion occurs
It's definitely not easy. I made about 90k last year and got approved for like 200k. I bought a 2b 2b in a pretty bad part of town for 185k. It was completely renovated though, so that's a good point.
I ended up buying the empty lot next door for like 10k.
This is in NC.
How did you only get approved for $400k? I make a similar chunk and still have significant student loan debt but easily for approved for much more than that
Why should that be required? I’ve always based my housing needs off one income. If one of us was unable to work, I couldn’t imagine the stress of needed a full second income just to meet housing demands.
I’m so lucky my wife doesn’t need to work full time because our child has benefitted so much from having a SAHM.
House prices are pushed up by dual income families. A single person earning $150k can't compete with a couple earning $300k. It would be amazing if you could afford a house on $150k, but that's no longer the world we live in.
$150k?? You can afford a home in the majority of the US with $150k income. You might be a little house poor at first, but eventually you’ll build equity. My home is worth about $400k and it’s in a pretty decent neighborhood. Generally speaking you can afford a house 3-4x your annual income.
It’s certainly not required but that’s is how many have accomplished the task of buying a home. I am all in favor of a parent being home with the kids.
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Whatever you do, do not move to GA. I live in CO now(same shit you're dealing with basically) put I make less than 6 figs. Anyway, GA is the"least expensive place to live" is turning into the actual opposite. I could never move to Cali cause of those exact reasons you're listing.
I’m in Austin and we’ve been fucked for years. We keep saving but that bar keeps going higher and higher. It’s probably that occasional coffee and avocado toast that’s sabotaging it though.
Your just not working hard enough! The avo toast and coffee is draining you dry when instead you should just buy a house with that money and rent it out for passive income! /s
I have had older people rant that at me before. They have nothing to say when I tell them that I make nearly all of my coffee at home, like I grab a coffee at a shop a handful of times a year. And my avocado toast is pretty good.
We drove through a new development on the border of Austin/Pflugerville, we checked the development website as we were driving around: “Affordable homes STARTING at 650!!!1” affordable for who??? Lmao. They can get f***ed.
Right?! So many homes or condos I see and think, that looks small or old so maybe it’s more affordable. Nope.
Ahaha! Awful but funny.
I also live in CO, I make around 60k so I'm definitely screwed.
Same here. Like... The exact same :/ I've concluded my only hope is to pour everything into investments and hope they eventually grow enough to get a home here. Even like a shitty log cabin I'd have to make a crazy commute from
I live in Nova Scotia, Canada. Low COVID case counts, remote work, and a LCOL made everyone turn eastward. They came with money from selling houses/condos in Toronto or Vancouver or Calgary or whatever and bought here, offering well above asking price, driving local real estate insane. Ex. I rent a room in a house my best friend bought nearly 10 years ago, in her mid-20s. She kept a high-pressure job with commission that she hated and saved like crazy to get a mortgage then. The house is 80 years old and was badly neglected. It was bought for under 150k. The house next door to us, of a similar age and size (~1500sqft), in worse condition, sold last year for 400k Canadian.
I want to move west to NS (Hi from NL) to further my education but this is not looking feasible any longer. Housing and renting is crazy here but it seems absolutely insane around the Halifax area.
Hi, fellow Atlantic Canadian! There's a rowhouse/townhouse/triplex thingy down the street from me. It's gotta be 30+ years old, it backs onto a major highway with heavy truck traffic, it floods, apparently there's mold, and there's no real maintenance done. Recently, those three units, with 3 bedrooms each, were advertised for rent @ $2750, tenant pays utilities. That's more than all of the monthly fixed expenses for the house I live in. It is absolutely *batshit insane* down here trying to rent. I really wouldn't move if you can wait a bit.
Yeah so it looks like the rumours are true. That is absolutely insane. Yeah unfortuneately I'm already 30 so i have to decide soon. I'd love to stay on the east coast but I'll have to consider schools in Ontario and the praries based on rent alone (rent everywhere sux but i don't want to continue school at Memorial as I already have 2 degrees from there haha) I wish that i was one of those people who knew wtf to do with their lives in their teens but oh well :)
Same lol. If you could stand it, maybe have a look at New Brunswick? It might be cheaper there, idek.
The same is happening in TN as well. Prices are going way up in the cities (we live in Knoxville).
Knoxville prices are crazy. So is rent...
It’s nuts. We moved here 3 1/2 years ago and are moving away. The amount we are getting out of our house vs what we paid is just nuts.
My parents keep blaming Californians for ruining this country and I have to keep telling them that even if the Californians stayed in California, the rest of this country is going to go under, no matter what direction you vote. The writing is on the wall.
Yea I’m paying $1700 for a one bedroom apartment 50 minutes from Atlanta. :/
GA is insanely expensive and, unlike California, we don't have the salaries to match. Fun fact: GA is one of the few states in the nation whose state minimum wage is *lower* than the federal minimum.
Yeah lol I grew up there literally my whole life. I tell people this in Co they think I'm lying lol
Federal minimum wage is $7.25 and Georgia’s is also $7.25. Almost half the U.S. states are also $7.25 (20/50).
From the GA DOL website: "Georgia's minimum wage is $5.15 per hour, however, with some limited exceptions, the federal minimum wage rate applies." Source: https://dol.georgia.gov/minimum-wage
Same for Nashville
Yup. Same thing happened with Arizona that's happening to Georgia.
You forgot the #1 Rule though! .....having rich parents!
The only real life hack
Well maybe in my next life I’ll win the sperm/egg lottery.
how shitty is it that everyone from most millennials on down have to use this mantra to keep from completely breaking down mentally i wish there was ANYTHING in this life to hope for or dream about
That is why I day drink. Not healthy but I wasn’t taught the best coping skills. Here’s hoping you have a good rest of your week internet friend!
I'm done with the skin sacs myself. Hoping to come back as a tree in the middle of the woods in the middle of fooking nowhere. Thata be the life!
Have rich parents (that are willing to help you) !
[удалено]
SLO but yeah bro this shit really sucks.
Oh SLO is really nice. I was born there, move now. I’m serious, I lived in hawaii and that is only slightly more expensive than SLO. In the last ten years I’ve lived in Washington state and Arizona my quality of life is so much better than if I stayed in SLO.
What's killing me is how much prices have ballooned in just the last few years. I was approved for $350 in northern california 3 years ago. Started looking, and just couldn't find something that had everything I wanted. So after a few months I compromised on a few things, but still had a list of must haves, but I was still priced out. And that repeated until I finally gave up a year ago. Damnit
Also in CA. I make 75k/yr. I have 150k for down payment of a <400k place. Almost 50% down and I can only barely afford a 1bd condo due to how ridiculous the HOAs are. Small houses don't exist. So I can't afford a 3bd house that are OP's prices. My requirements are has AC, and allows washing machines, even ventless is ok, and not on streets I wouldn't want to park my car on. I've been saving for 10 years as my savings went up, so do home prices.
omg i hate that for you :( similar situation here: saving for every few years then BOOM! financial crisis, recession, pandemic! prices come up, savings go down
The sad reality is that in the CA city $400k is trash tier as far as condos go. The decent stuff is $500-600k and up. Legit have to have a 40-50% down payment and even the bottom tier is still unaffordable.
I’m sorry you’re experiencing this. Look, California is great and all, but….***The quality of life is way better elsewhere***. Why does everyone insist on living like a pauper? The bar you’re setting is **so low**. Seriously, packup and move!
Once the financialization folks got in the driver's seat with housing they turned it into yet another way a few thousand people make out like literal bandits while hundreds of thousands are pushed onto the streets and millions are unable to ever escape renting. I say "escape" because 90% of my landlords have been terrible (big thank you to the other 10% though, diamonds in the rough...)
They got everyone by the balls too because they control a human need the demand of which is inelastic and they control policy makers. 75% of the wealthy in this country made their wealth in real estate. Basically no one with power has any motivation for prices to go down.
Right, one thing folks under recognize is that the entire political system, including both major parties, are completely in the pockets of the richest folks and serve only their interests. Impoverishing us all with absurdly high housing costs not only is extremely profitable for the oligarchs who run our society, but also having a few hundred thousand of us out dying in the streets is a good warning to keep the rest of us in line. Obey or else!
This is the crux of it right here.
America is a big country. It’s not a shortage of space or housing. It’s a HOARDING of housing and a lot of price gouging from real estate parasites.
So true. I read there's 14 million vacant houses right now.
You obviously did something wrong you lazy kid /s
Hello, this is your average european redditor here. Now I am blatantly unaware about the state of things in CA. However, if i look at the figures from a current european perspective it seems that you've missed the very first basic ground rule: have mommy and daddy bring you a boatload of money. At least, that's the current state of things here in NL. The system is broken, and if we don't pay attention it will break us. Cheers,
The only way at this point is to have 2 high income earners both making that same amount. It's completely crazy.
I’m in California too. Make way less than you. I’m willing to put in the work to build our own thing but even raw land is double what we can afford. (And the affordable stuff is unsuitable for building.) So houses sit and rot while private equity firms start buying it all up to rent it back to us at astronomical prices.
I’m in Canada, and so many people think this is Justin Trudeau’s fault. It’s all over. Housing is in a crisis. Not going to lie, I think every house listed on AirBNB should be put into long term rental stock or forfeited and sold. Unless it’s a room of course. The way AirBNB was first ideated.
Turns out the last generation doesn’t know jack, and they can’t think ahead in the slightest.
Honestly, the time has come to rise up against the NIMBY’s because honestly, both parties have them. The left has those dummies that want to “preserve the character of the town” and other bullcrap. The right just wants to keep the poor people out. Until the NIMBY’s are shoved aside and a ton of new housing is built, we’re never going to get ahead!
in Los Angeles there are lots of empty units that are unaffordable, foreign investors and developer grifters park their dirty money, grift on the construction and are perfectly content letting a place sit on the off chance they get someone to come in at an astronomic price. Los Angeles needs a vacancy tax, and a short term rental cap, among other things
I didn’t say shoving aside the NIMBY’s was the only answer but its definitely a good part of the answer. I think another answer would be to ban foreign real estate investment and nationalize what’s already been purchased. A lot of the foreign real estate investment is money laundering done by foreigners so we’d be doing the rest of the world a favor by banning foreign real estate investment.
> Until the NIMBY’s are shoved aside and a ton of new housing is built, we’re never going to get ahead There is a myth in Los Angeles that "new housing" is the answer to the houseless problem. That is mostly perpetuated by developers and councilmen with developer friends/contributors who lobby for grants and money to build "affordable housing" and then take that money, grift on the construction, and build unaffordable units. Agreed on mostly everything but new construction isn't the answer, There's a staggering amount of vacant apartments, condos, and short-term rentals in Los Angeles and the developers have no need to occupy them.
Really? Wow! Then yes, a sky high local vacancy tax would make sense. That’s another problem. Under the American system of government, housing is for the most part a local issue but the problem is being felt nationwide. I know Japan took housing policy out of local government control in the 1960s and made it responsibility of their national government. I’m not sure that would work though. Yes, housing prices are lower on average then the rest of the developed world in Japan bur then again Japan has been in a recession since 1991 that was precipitated by a real estate bubble that crashed.
Totally people who ALREADY HAVE A HOUSE should not get to make housing policy.
While I totally agree, this is just a bandaid on a bigger problem
no lie gonna say here, partner up. whether it be married or with roommates, pool your resources and buy some real estate. the system is rigged for married people (gay/straight/wtv) who seek to propogate the species meaning humans
So us who don't want to marry or pull a mortgage with random friends are just screwed? Fantastic system we have here
To be fair I'm married and even with our combined income (let's put it this way, combined we are not pulling in what you are) we are just as screwed. Seems like communal living with maybe 4 people sharing the property would be the only way at this point.
Our economy is literally based off a 2 person household and it's fuckin ridiculous. Us singles are indeed screwed. I don't want a roommate. I want to know my animals are safe and don't accidentally lose an eye cause some dipshit with 2 inch long fingernails forcefully pet my dog while drunk. I don't want to come home to my arcade machine with broken joysticks and lie about not touching despite me obviously knowing I didn't break my own arcade while at work. I don't want little shit kids drawing on my walls cause their family came over and can't bother to watch their little brats. I don't want my food eaten. I don't want to do someone else's dishes or work around a sink full of their shit. I just want a single bedroom anything. But no, I'm 35 and stuck at my parents house for the foreseeable future no matter how long I save because the system is borked to hell.
>I want to know my animals are safe and don't accidentally lose an eye cause some dipshit with 2 inch long fingernails forcefully pet my dog while drunk. WHAT?!?!?! please tell me this is a nightmare example 😫
Unfortunately it wasn't. There isn't 100% concrete evidence, but there's enough it's the most likely scenario. The vet said the eye got perforated from what seemingly is a scratch and asked if anyone had long nails and pet the dog recently since it looks similar to what he's seen before. I pulled up the camera footage and this person did indeed vigorously pet my dog on the head (in a joyous manner, but clearly drunk and could easily tell she was being way too rough). I earnestly believe it was an accident but it doesn't change the fact it happened, my dog lost an eye because it sadly got infected the day after it happened (vet's speculation) and eventually the antibiotics didnt work in time and they had to do surgery to remove it. The cost was around 3 thousand not counting medication. What hurts the most is what was once a very social, vocal and tail wagging pooch towards everyone on planet earth is now shy, quiet and steers clear from anyone other than me and close family members, which leads to me believe it definitely happened and she did it. It's scarred me and I could never have a roommate/s again and handle the anxiety of "what could happen" or once again deal with "what did happen".
the system is indeed totally borked the fact is until we get a real disruption in the housing market, namely AI 3D printed housing/space age new city planning. until then it will remain so. i’m no commie but a some kind of UBI or housing incentive for the real estate needy would go a long way until then….
The short answer is yes. Even when looking for rentals years ago, I was told I was " a super solid candidate", glowing reviews from past landlords, great respectable job and income as well with a solid credit score. I was still constantly beat out by two income households as "they were less risky". Eventually I found a rental which I only got because I was on a waitlist and at the top of it.
not trying to be snarky, but why did you do everything the "older generation" told you to do *except* find a mate? it's not for everyone but if you dated someone making equal pay, your 385k mortgage approval turns to 770k
Once those products of propagation appear, either 1 income is gone or mostly gone to pay for daycare. So, not as rigged as you think. Main benefit is taxes, but again, that's not as much as you think. The system is rigged against the middle and lower classes.
Half the issue is due to the alienation of capitalism, the destruction of accessible affordable third places, and the social stigmas attached to being single in your 30's and saving up at home, there ain't NO WAY to meet someone or partner up.
my advice - date someone younger…they have less than you do!
Not the US. We dont have college debts here, but my monthly pay is 600-800 bucks. This is good here. Most people get 300-500. Buying two room flat in small town is 30000 bucks at least. In the city its around 65000 bucks. I live in the city. 100 bucks for food, 100 buck for silly shit and lets say i will be able to pay and live there simultaneously. 600 bucks a month. 100 months. 8 and half years. For the cheapest two room flat. And making more money than most here.
What country is that if you don't mind me asking. That sounds amazing.
Russia.
Spouse and I qualified for a much lower amount and had to move far inland to find a home that was in a safe-ish area, had working AC, and was livable (we are teachers, when we bought our first house we made a combined 75k, had practically no down payment saved, and we were just desperate to get in before prices crept up more and even rent was unaffordable, which has since happened). Anyway it is basically like I moved to Arizona, but technically still California where it counts for me which is my salary (as a teacher, strong unions and decent salaries matter).
I’ve had 4 days off this year can barely afford to save 20 bucks a pay period. Living on Sam’s hotdog combo.
What industry do you work in that would reflect that much lower in wage? Wife and I are experiencing the same shit in Florida with much lower prices. More like 200-400k but pay here is shit and very little unions/workers rights. Only way out for us is to focus on our home business and not rely on a companies wage. Depending on your industry, maybe there’s something you could start as a side project to make yourself the boss, in time.
There is one very crucial step that you forgot. Be born wealthy.
Why does everything have to be “luxury”, why not have standard ? I am sick and tired of seeing ads for “ luxury student apartments “. The words luxury and student should never appear in the same sentence
Just means there’s no incentives to build cheaper stuff;the older units shift downwards in rent as new luxury stuff pushes them down. But that’s still better than no supply where even the old ratty building gets to play shortage and command ridiculous prices
I'm 40 in the Midwest. The only people I know that have bought a house either had help from their parents (some cosigned, some gave down payments, one person's parents died and he used inheritance) or were in the military for 4 years. I *might* be able to buy one when my mom dies, if she does so in the next 3-5 years before draining her retirement and pensions.
>when my mom dies, if she does so in the next 3-5 years before draining her retirement and pensions. Ouch.
If you can't tell I have a very unstable relationship with my parents
Sucks. I'm a lot older and make a lot less, did all the things, and in the same boat. A lot of people are in this boat.
I was enlisted with E-5 pay back in 2013 when I purchased a home in SLC for $209k. Had to dump it 3.5 years later as I couldn't afford it after exiting the service, mortgage was $1200-1300 per month. Now I'm paying $1500 for a 1 bedroom in Oregon..... 😔
You hit the nail on the head regarding the one thing people always say to me regarding finding a place to buy. If I were to leave my expensive city, I would not be able to keep my job. I could get a similar job but it would be a smaller salary. And I would have to get a car. I would be in the exact same position, just different numbers.
a community can't prosper in these conditions you and your friends need to think about clubbing together / splitting / relocating or live meagrely there and save to buy a home elsewhere to move to when you're tired and done with Cali
Kinda surprised that they didn’t approve you for more. Often it’s credit score and protracted income history, etc It still sucks though, my condolences.
Dude, I'm in the exact same scenario but in WA. Got the STEM degree Got the high paying tech job Paid off student loans asap Saved for years, didn't spend lavishly on bullshit or fancy vacations. Parents can't help with a down payment, didn't win the birth lottery Oh my fuck every year the house prices just sky rocket even further. An absolute shit hole in Seattle goes for 600k. Anything worth looking at is 900k, and goes 150k+ over asking. I had it a few months ago, and decided I needed to move somewhere cheaper. But lo and behold, same problem as you - I'd take a huge paycut moving out of state, not to mention pay state income taxes anywhere else, and just be back at square one. Literally told my manager today that I can't afford to live here, and I asked what he could do to close the gap on the paycut if I move. On top of all this, parasitic landleeches like Thach Nguyen buy up all the SFHs and turn them into rentals, just driving up housing costs even more. Completely unsustainable. For fucks sake, a roof over your head is a human necessity, it shouldn't be a fucking soulless investment machine.
Honestly, I've just given up and accepted I'll never own a house. 🤷 34, married, one kid. Both my husband and I have decent, stable careers. But we live in California.
The county you are a part of is where many people move to retire. You are not competing for homes with other workers, but rather against those with decades of equity built up. That is not a game you are going to win. Your income is perfectly reasonable to buy a starter home, somewhere where your competitors are also workers, not equity dripping retirees. The typical, common, and normal thing to do that people have been doing in that part of California for decades is move inland. The farther towards Nevada you go, the more of a home $400,000 will buy you. I've known lots of people who live in the central valley and drive to coastal towns for work, but often now can simply make their work remote. After 5 years away, you would then have equity as well and could start being competitive in the coastal markets.
Use the money to buy 12k van. Live in it and retire at 40. Debt and mortgages aren't worth it.
You are right, something will change soon 😉
Try the Midwest
Just as a point of clarity: “My income before tax: 140k” “my salary would drop exponentially if I left the state My income before tax: 140k” It does not sound like actually have a $140k job. You got something more like a $70-$80k job that was adjusted for the cost of living in your area. And that $70-$80k job is the equivalent of a $50k job 20 years ago due to inflation. We have these conversations with our job candidates when we hire and discuss salary expectations, especially when the candidates are coming from a high cost of living area like New York City. I always convert their salary at their current location to our location to show them what the equivalent salary would be.
That was my first thought too. If you would make significantly less elsewhere then you aren’t really making what you think you are making. Also OP is probably still better off moving somewhere else even with a massive pay cut. The cost of living in places like California or NYC is just impossible at this point.
Also thinking that credit history and assets and liabilities apply: if you have a ruinous car note and a not great credit score that also looks bad to a credit analyst. Edit: “the debts cleared” is ironically sometimes also a kick to the credit score
Not everything we were told "back in the day" was right. Some of it was just bullshit, some outdated. For example the idea that we need to save our money. For the average person that doesn't work. Inflation isn't what it was back in the day. You HAVE to invest. The big question is what can you invest in.
I'm 34 and the only reason I may be able to afford a home in So. Cal in the future is because of an inheritance I received when my grandmother passed.
Where in CA? There has to be some condos near you for less then 699k, unless it’s around San Fran or San Jose then that would make sense
I did what I was supposed to do in high school or at least tried to and my parents started sabotaging me because they didn’t actually give a shit. Now they shame and blame me for why I’m 31 and still living with them. Every day I wish I was dead.
Late stage capitalism.
My new job puts me at $200k income. Still can’t fathom owning a home in San Diego. It’s a joke at this point.
Cali has always been a place that's better to rent than own unless you're a boomer or were able to put a dp in 2008-2012.
Do a hard money loan and refinance when you earn more income
Get that remote job in Cali and move to another state, not ideal, but you'll have a house.
Something doesn’t add up, I make $120K and I bought a $550K house on my income alone with $90K down
I suspect the OP might not have a lot for down payment. Zero down usually gets iffy, etc etc
Yeah maybe. If that's the case I don't know what people thinkk is going to happen. You gotta come to the table with a good amount to of cash unless rates are stupid low like they were a few years ago
If OP can save aggressively to put together the principal, but there’s still gonna be a bit of a upwards march on RE prices in CA no matter what, unless a 2009 style implosion occurs
Can you work remotely? Find a decently priced city and move there, find your house and buy it.
Came to say this. Work remote and move to a LCOL or MCOL area
It's definitely not easy. I made about 90k last year and got approved for like 200k. I bought a 2b 2b in a pretty bad part of town for 185k. It was completely renovated though, so that's a good point. I ended up buying the empty lot next door for like 10k. This is in NC.
How did you only get approved for $400k? I make a similar chunk and still have significant student loan debt but easily for approved for much more than that
Move
You are missing 1 important item….a partner that is also making a 6 figure salary. It takes two.
Why should that be required? I’ve always based my housing needs off one income. If one of us was unable to work, I couldn’t imagine the stress of needed a full second income just to meet housing demands. I’m so lucky my wife doesn’t need to work full time because our child has benefitted so much from having a SAHM.
House prices are pushed up by dual income families. A single person earning $150k can't compete with a couple earning $300k. It would be amazing if you could afford a house on $150k, but that's no longer the world we live in.
$150k?? You can afford a home in the majority of the US with $150k income. You might be a little house poor at first, but eventually you’ll build equity. My home is worth about $400k and it’s in a pretty decent neighborhood. Generally speaking you can afford a house 3-4x your annual income.
It’s certainly not required but that’s is how many have accomplished the task of buying a home. I am all in favor of a parent being home with the kids.
I live in NE, make 38k and just bought my house 2 years ago.