Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Is affordable housing in America fast becoming unaffordable?

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July 10, 2005

Is affordable housing in America fast becoming unaffordable?

Are you a recent college grad and looking to buy something more or less affordable in Miami or Houston? Tough luck. For the first time home buyers times are really getting rough. If you live in any major metropolitan area or its close vicinity, to find something you can afford is close to impossible. Sure you can still buy a place but it will be quite far from the action.

When I graduated from college in December of 1991, I was making $38,500 to start. Not bad for someone who delivered pizza in his early American days and moonlighted as a contractor security guard at sprawling Motorola campus for $6 in hour.
I bought my first condo in a nice north suburb of Chicago, albeit in the most affordable section of it. The price was $92,000 and with 7 year balloon at 7.5% I still had money for brand new car and even few bucks to go out. I also paid monthly association fee of $242 that included gas, heat, water, pool, tennis courts and decent acreage of grass.

It was tight but at least I could pull it.

Well, 14 years later that affordable place is still the most affordable housing there but the price increased somewhat, to just around $170,000. Association fee is about $330, still all-inclusive.

But there are very few single first time buyers there. Who can afford it when the average salary increased very little compare with those of 14 years back. The hottest jobs today are said to be in the accounting with salaries going to high $40s and even low $50s to start.

So what, try to buy a place for $170,000 and the rest of works, car, gas, etc. on $50,000 a year.

Read more on today's "affordable housing"

 
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