• @jordanlund
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    141 year ago

    There are, but you can’t make a living there.

    It’s all proportional.

    Let’s say you want to live in a low cost of living state:

    https://www.ramseysolutions.com/real-estate/cheapest-states-to-live-in

    Mississippi.

    OK, I don’t know why anyone would want to live there, but sure, let’s look at the numbers.

    https://www.census.gov/quickfacts/fact/table/MS/BZA115221

    Per capita income in past 12 months (in 2021 dollars), 2017-2021 - $26,807

    Persons in poverty, percent - 19.1%

    https://www.zillow.com/home-values/34/ms/

    “The average Mississippi home value is $174,932.”

    You aren’t buying a $175K house making $12.54 an hour. It’s not happening.

    • @Pretzilla
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      41 year ago

      Good maths but do it again with median, not average

    • @FlowVoid
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      1 year ago

      You need to use median household income, not per capita. It’s $49,111 in Mississippi according to your source.

      The ratio of home price to household income is typically between 4 and 5 in the US, so the median family should be able to afford the median house in Mississippi.

      • @[email protected]
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        31 year ago

        Household income is absolutely not the right metric to use here, because it’ll always be proportional to the cost of the house out of necessity.

        For example, if the cost of a house goes up relative to individual income, then more people in the family need to start working more hours, and more people live with roommates.

        Household income stays proportionally the same, always, but individual income shows you how much people are struggling.

        • @FlowVoid
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          1 year ago

          No, it’s not the right metric. Which is why people don’t use it.

          Imagine you make $160K and buy the nicest house you can afford with that income.

          Then you get married, and your spouse makes $100K. Your household income has increased to $260K, which means you can afford an even nicer house.

          Your per capita income has decreased to $130K. By your logic, you can’t afford a nicer house. In fact, with a second income you might no longer be able to afford your current house. That’s nonsense.

          When multiple people live in a house they all have the opportunity to contribute to paying for it. Some may contribute a lot, some (like children) may contribute nothing. The house you can afford depends on the total amount everyone contributes, aka household income.

          if the cost of a house goes up

          This doesn’t make sense. The cost of a house is fixed when you buy it. It won’t ever go up while you live there.

          • @[email protected]
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            31 year ago

            People didn’t used to need a second income to afford a house. Now they do.

            Household income doesn’t show that change. Individual income does.

            • @FlowVoid
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              -11 year ago

              The median income for a single-income family is $78K. That’s enough to afford a house that costs $310K-$390K.

                • @FlowVoid
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                  1 year ago

                  When everyone needs a separate individual house that they refuse to share, then per capita income will be relevant.

                  But in the real world, people buy houses because they want to share them with their family. On average, 2.5 people live in a single house. And the median household income is $63K in Michigan.

                  So if you really want to look at per capita income, that means there is $87.5K (2.5 x $35K) available to buy a house, which is easily enough to afford a $300K home.

                  • @[email protected]
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                    21 year ago

                    Again, families didn’t used to need 2 incomes to buy a house.

                    Saying that households can still afford houses is tautological. Of course they can, or they wouldn’t be a household.

    • @interceder270
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      -61 year ago

      Yeah, my house was only $60k. 1,200 square foot. Wasn’t the best deal I could get, but I’m satisfied with my purchase.

      I was also looking at houses in a similar price range in Mississippi.

      You don’t “need” to spend ‘average price’ for a nice house. You choose to because you want the luxuries that cause the price to go up.