Discussion in 'Wall St. News' started by kaciara, Jan 11, 2010.
Makes one chuckle when people claim how "food was so much more affordable in the good old days".
We're paying more than ever for housing, but I don't think there is any doubt that peoples standard of living has increased greatly in the past 20 years as well. It used to be common for a middle class family of 4 to live in a 2-3 BR, 1,200 sqft house. No more. Now that same family lives in a 4-5 BR, 3,000 sqft home.
i wonder what's ''other''...
If you talk to folks from 2 generations back, housing in the 50's and 60's generally required only 1 income, the husbands to pay mortgage. A guy I used to work with said his Dad had a 3 bed in Long Beach, nice neighborhood, and used 1/4 of his take home pay. I know what some of you astute ppl. are thinking he was not in aerospace BTW. I can't recall what he did exactly. Yes the home was much smaller than standards today. 1200 sf. I believe for kids.
If you think about what has additional credit done for us? For one, it has increased prices substantially in many cases.
That's a fair point, although I would argue that if one wanted to live like this family you're refering to, you can still live that way as a 1-income family.
That would mean, no Starbucks, eating out a handful of times/yr, no cable, no cell phone, no Xbox, etc.
It's your kid's b-day..... you bake a cake and give him one small present.
I still believe that a family can live on one-income (average income) if they make the choice to do so and live that type of lifestyle.
As a reference, my parents were able to purchase 2 homes on one salary: the first (main) home was purchased with the help of a G.I. mortgage, which probably just about every male got since they all served. The 1 1/2 percent mortgage enabled them to move from the East side walk-up to a 1/4 acre in Jersey. You could equate it to today's r.e. market with ridiculous leverage and low rates, the only (or main) difference was that then, you bought a house to live in, not to flip so you could buy the next big LCD or lease the newest Lexus/Mercedes/Escalade/etc.
The second house was a vacation house down the shore. Both roughly 1200 s/f homes were about 20-30k. And my dad never made more than 40k in his life.
You can't do in CA anymore, no way. Maybe in Iowa. Unless you want to live in the freakin' desert
There are definitely some areas that are just too expensive, but again, that is a lifestyle choice.
So Cal, Bay area, Chigago, NY, certain parts of Florida.
Outside of those areas, you could do it if you chose to.
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