I've wanted to ask this question for years and feel like an idiot asking it, but I just don't understand how so many people are affording the outrageous home prices in places like California. Last night the wife and I were watching a "House Hunters" episode where a single mom was looking for a house in Oakland. Her budget was $800k (which is ANOTHER thing I don't understand), and the 3 home choices she was deciding from were AWFUL. One was a 1600sq 2 bedroom, 1 bath option that wouldn't be more than $100k here. The one she ended up choosing was about 2400sq. and was listed just under her $800k budget, but the show said she ended up in a bidding war for the house with multiple other buyers and had to shell out $920k to secure it!
Any of those homes would have been $130k MAX anywhere in Texas, so the price difference is just ridiculous. I know property taxes are much lower there, but there is no way that makes much of a difference. Incomes can't possibly be 5 times greater on average out in California, so how exactly are people doing it? Or is it actually that only the rich have houses out there?
Again, just curious. I've never lived anywhere but Texas so I have no idea how people do it in these coastal states where I see the average home prices are nearly half a million. All I know is a world here where you can make $60000/year and actually own a modest $150k house.
Any of those homes would have been $130k MAX anywhere in Texas, so the price difference is just ridiculous. I know property taxes are much lower there, but there is no way that makes much of a difference. Incomes can't possibly be 5 times greater on average out in California, so how exactly are people doing it? Or is it actually that only the rich have houses out there?
Again, just curious. I've never lived anywhere but Texas so I have no idea how people do it in these coastal states where I see the average home prices are nearly half a million. All I know is a world here where you can make $60000/year and actually own a modest $150k house.