Median Highest Paid Income with Lowest Median Home Prices

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invest2bfree
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Median Highest Paid Income with Lowest Median Home Prices

Post by invest2bfree »

I live in Illinois (Chicago metro), I feel that this area has the best house you can buy for the income.

The median house price is 220K.
Median Household Income is 70k.

So Chicago Metro Homes are 3 times median household income.

Now SanFransisco house price is 850k
Median household income is 100k

So homes are 8 times household income.
I did not include property taxes which is 2.5% in Illinois which could affect the numbers.

Now as far as schools go Illinois has excellent public schools and I am sending my 3 kids to public schools, that saves me 30k a year in costs.My cousin lives in DC\MD area and has very few good schools and she sends her kids to private school

Am I on the right track or am I taking a simplistic view.

I could have moved to west coast but decided to stay were Iam so was checking to see whether I made the right decision.
ThankYouJack
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by ThankYouJack »

I think you're taking too simplistic of a view. This is a personal decision, so I'm not sure how comparing what everyone else is making and spending on a house factors in. Some people will be happier living on the west coast and paying the huge premium, others will not. It all depends what you're looking for and how much you're willing to spend. I personally love the west coast (and have lived there for a bit) but wouldn't move there unless I had an extremely high income ($400k+)
tibbitts
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by tibbitts »

Not simplistic, just misguided. Everything you've mentioned is a horrible basis for deciding where to live. Decide where you want to live, then decide if that location is financially reasonable for you.
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invest2bfree
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by invest2bfree »

ThankYouJack wrote: Sun Nov 29, 2020 10:06 am I think you're taking too simplistic of a view. This is a personal decision, so I'm not sure how comparing what everyone else is making and spending on a house factors in. Some people will be happier living on the west coast and paying the huge premium, others will not. It all depends what you're looking for and how much you're willing to spend. I personally love the west coast (and have lived there for a bit) but wouldn't move there unless I had an extremely high income ($400k+)
Jack you make my point, when you said you wouldnt move without a high income.

All my life I made only 65-115k and my wife did not work so if I moved to west coast I would be living in a shack.
jbmitt
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by jbmitt »

I suppose you can look at it that way.

A small, wealthy suburb like a West Des Moines or Waukee, Iowa can skew your data. I’m sure there are much wealthier areas, but not necessarily the mix of jobs or amenities. I’d guess that an Indian Hill or Wyoming in the Cincinnati area would also be examples that affect your multiplier.

It seems to me that you’re justifying where you live.
Ron Ronnerson
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by Ron Ronnerson »

There are far more things to consider than what you mention. I won’t list all of them but will just say that overall taxes for your specific situation is worth considering. If you only consider property taxes, that can skew your perception. Also, to be even fairer, extreme heat and cold can tax the body and spirit and should be considered too.
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Watty
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by Watty »

Here is another web site that you might find interesting.

https://www.nar.realtor/research-and-st ... ordability
invest2bfree wrote: Sun Nov 29, 2020 9:53 am Am I on the right track or am I taking a simplistic view.

I could have moved to west coast but decided to stay were Iam so was checking to see whether I made the right decision.
One thing you are missing is that the median home in the different markets will be very different.

It was a long time ago but I used to live in the Bay Area and typical suburban homes were frequently less than 1,500 square feet on a tiny lot. Houses less than 1,000 square feet were not all that uncommon. I would suspect that the median home in Chicago is a LOT larger and on larger lots.

You also have to look at the commute time in the different cities. In the Bay Area you might need to have a very long commute to live in a Median price home.
CyclingDuo wrote: Sun Nov 29, 2020 10:44 am Now SanFransisco house price is 850k
It would be good to double check that number, it sounds way low especially for the city of San Francisco
adamthesmythe
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by adamthesmythe »

This is a useful strategy if you are a median person.
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Kenkat
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by Kenkat »

I think you will find similar numbers in many midwestern cities; your numbers would indicate that Chicago is probably cheaper overall than San Francisco but I could substitute many midwest city names and numbers into your post and show them as “best”.

The other point I would make is that you’d want to be sure you are comparing metro area numbers and not city limits; some cities have a metro government encompassing many richer and more affluent suburbs while others do not. Cincinnati city is an example of the latter so you’d want to use Cincinnati metro which would include affluent / excellent school communities such as Wyoming and Indian Hill as mentioned above - both are in close proximity to the city of Cincinnati but not a part of it.
rockstar
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Re: Median Highest Paid Income with Lowest Median Home Prices

Post by rockstar »

invest2bfree wrote: Sun Nov 29, 2020 9:53 am I live in Illinois (Chicago metro), I feel that this area has the best house you can buy for the income.

The median house price is 220K.
Median Household Income is 70k.

So Chicago Metro Homes are 3 times median household income.

Now SanFransisco house price is 850k
Median household income is 100k

So homes are 8 times household income.
I did not include property taxes which is 2.5% in Illinois which could affect the numbers.

Now as far as schools go Illinois has excellent public schools and I am sending my 3 kids to public schools, that saves me 30k a year in costs.My cousin lives in DC\MD area and has very few good schools and she sends her kids to private school

Am I on the right track or am I taking a simplistic view.

I could have moved to west coast but decided to stay were Iam so was checking to see whether I made the right decision.
You also have very high taxes in Chicago. I've lived there and left because of the cost of living mainly being pushed up by yearly tax increases. And Chicago public schools are not good.
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Re: Median Highest Paid Income with Lowest Median Home Prices

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