Why “Overpriced” Markets Like San Francisco May Be Healthier Than You Think

And because the cost of life outside of housing expenses is roughly equal in most parts of the country, housing prices do not scale linearly with growth in median income.

They scale exponentially.

A $6,000 increase in after-tax, take-home pay enables a household to afford the payments on roughly $100,000 more in property value. (Monthly payments, just principal and interest, on a $100,000 mortgage at 4.5% interest comes out to about $500 per month or $6,000 per year.) And, of course, they can make a $6,000 annual increase in rent work too.

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A good way to look at relationship between median wages and housing price. You need to strip out the other expenses, which is more similar than people assume, and look at the excess. All of that extra dollars will go to housing.

You’ve convinced me. Have asked my Austin realtor to sell all my Austin rentals. Will go to an open house to overbid everybody else. I’m on the prowl, please stay at home for your safety :skull:

Can I buy your Austin rentals then?

If @hanera owns a large enough share in Austin, he could probably move the market.

Down in Watsonville there is one family who has the goal to own the city. For decades they have purchased rentals. I was surprised that they let me beat them a few times at trustee sale auctions when the auctioned property was on their turf.

That’s why I’ve never understood why DTI ratio is a static requirement regardless of income level.

If you want to buy Austin, avoid Travis County (apparently run by Democrats), property tax has been increasing at a rate of 10-15% per year. Buy Williamson county (apparently run by Republicans), property tax has declined this year… buy the well known Avery Ranch for techies.