From Yahoo Finance: http://polls.yahoo.com/public/archives/57019568/p-quote-300 The typical U.S. family in the 1970s had one wage earner. As of 2000, it had two. What family expense increased the most in this period, as a percent change? - Total spending on health insurance - Total spending on mortgage payments - Total spending on cars & maintenance - Total spending on home entertainment Correct answer is : Total spending on mortgage payments. "The authors of 'The Two-Income Trap' detail how the typical U.S. family today, with two wage earners, is worse off than a generation ago, even with higher family income. In their account, mortgage expenses are largely the culprit. Expenses like automobiles and taxes increase nearly in lockstep with adding another wage earner in a family, and for the typical family they did increase significantly over the period. But in the typical family's budget, the largest percent gainer (aside from taxes) has been mortgage expenses. It's not that typical families today buy newer homes. The authors argue that, instead, the middle-class family faces a potent housing problem. Housing is important not just because home ownership is a traditional value, but also because it is the key to obtaining good public schools for children. But with relatively few good schools, and relatively many dual-income households, a bidding war has ensued. The result? Adjusted for inflation, mortgage payments rose 69% in real terms for the typical U.S. family in this period. So while the typical U.S. family in 2000 had 75% more income than its counterpart in 1973, it was still left with less after expenses." --- Very interesting. Is this why some or many out there believe there is a housing bubble? I hate to break it to those waiting for a burst, but housing markets don't collapse like equitiy markets. Anyone read the "The Two-Income Trap" ??
"I hate to break it to those waiting for a burst, but housing markets don't collapse like equitiy markets. " What if 10% default rate happened rapidly (2-3)- think that would burst the bubble?
Yes, it's sad for the younger generations. It will be near impossible for the average young family to afford a home. In San Diego, the worst condo's in the worst area's are going for $250K+. The people who already own homes,will have their property value's increase. But, for others it's almost impossible for them to afford a mortgage. I mean, you'd have to make $100k a year to afford even a crappy home in the worst area. Well, I guess only the strong survive and only the strong can overcome it. I'm hoping for a bubble burst, but I agree that it will probably not happen.
its all a matter of perspective. in america you pay those prices by choice. there are many small towns in my state that you can buy nice used homes for < 40k. and land can be had for 300 per acre. you can get a brand new house with no money down for < 120k. we even have a state program that will sell you a brand new 1000 sq ft house for 28k that you can put on your lot if you are low income(<33k year). i suppose most people would chose not to live here even though we have fine schools, no income tax, low crime, and major medical care facilities within few hour drive. its the same thing with auto expenses. in america you dont have to spend much on cars unless you want to. you can get fine used cars with many years use left in them for < 2000. expensive cars when you are young are a major retirement killer. the money you could save by being car smart when you are young can really add up.
I agree many people waste huge$ on cars. Most expensive car I ever bought was $4000. Many people I see spend 300-500 per month leasing a car and return it after 3 years. Insanity. OK I give up, are you going to reveal your state or county? I understand if you don't want to. Be well.
i live in south dakota. here is the housing deal of a lifetime. if you are handy you can finish this yourself and have instant equity. http://www.sdhda.org/sdhdagh.htm
actually we have one of the lowest unemployment rates in the nation. its under 2%. wages arent outstanding unless you have skills. big things here are medical,construction, and citibank has a big credit card center here.
Why don't I see taxes on this list? I suppose because certain pols keep telling me that taxes are good for me. The more I am taxed the more money I have?!?
Let me guess...you are in the midwest somewhere? Problem is often lack of JOBS. I see people enduring crazy commutes and lousy quality of life in order to have a job. m