How Much House Can We Afford?
Wages between 2000 and today have been about stagnant for many and have even fallen for a number of Americans. Recently, we have read about hundreds of thousands of layoffs and job reductions from companies going out of business or shutting down.
Let's look at what costs have done. Gas has tripled. Food has doubled. Utilities have doubled or tripled(depending if you use heating oil), Health Insurance has doubled or tripled (depending on employer contribution), Property Taxes have doubled.
Just factoring the above alone, many American families are spending $1000 to $1500 MORE per month not factoring any higher debt payments from additional borrowing due to a larger mortgage, resetting interest rate, or higher credit card balance.
$1500 per month is about the payment on a $250K house.
Here is the question.....Has the rise in non housing related expenses priced most American families out of owning a home completely?
A seperate question is if housing got repriced to what Americans could afford, and property taxes went down accordingly, how many states, counties, and cities would go bankrupt after borrowing Trillions supported by the new higher income stream?