I know it is more than average American household income but in areas like Boston, SF, some areas of Canneticut, Miami, average household income is close to 80K. 60K is below poverty line for them. House prices range from 500K to millions.
How do people living in these areas and making average American household income (Teachers, Nurses, mailmen etc.) afford housing?
2006-06-29 02:20:36 · 5 answers · asked by dude 4 in Social Science ➔ Economics
Some may have inherited their homes (or money to buy them) from wealthier relatives (the proverbial rich, but childless uncles). Some may have bought their homes before they became expensive. Some may have gotten lucky with investments. Some may have received a large settlement from a lawsuit or a large insurance payout. Some may have used interest-only (or even negative amortization) mortgages hoping to flip the properties soon. This is America; anything that can happen, does.
2006-06-29 08:34:01 · answer #1 · answered by NC 7 · 1⤊ 0⤋
You can finance up to your ears. Adjustable arms, etc.
Not that this is a particularly good idea if interest rates are going up..
But, those are basically your options: finance the heck out of a house, buy during a housing slump, or don't buy there at all. Move to the suburbs, like the above person mentioned.
With the housing market being as soft as it is right now, with a huge inventory of houses on sale, you can get lower prices - but the Northeast has always been notoriously expensive: higher wages, higher cost of living, higher property values.
2006-06-29 02:53:29 · answer #2 · answered by buzzfeedbrenny 5 · 0⤊ 1⤋
Canneticut? interesting spelling.
Most of these households with a lower salary are from two salary households. Both husband and wife work for a living. Plus there are ways to manipulate a mortage with interest rates and length of time to make it work.
2006-06-29 02:26:07 · answer #3 · answered by thunder2sys 7 · 0⤊ 1⤋
I travel a lot and have seen what you speak of but if you look there is always alternatives to the high cost of housing - buy in a suburb and commute - lower your standards - try looking into tax repossessions
2006-06-29 02:33:19 · answer #4 · answered by trickster_travels 3 · 0⤊ 1⤋
they probably got their houses before they became that expensive
2006-06-29 02:23:01 · answer #5 · answered by Anonymous · 0⤊ 1⤋