patrick.net

Today, some 2.7 million California households –homeowners and renters –pay at least half their income for housing. That includes the Garcias and about 200,000 other Orange County households. The numbers have nearly doubled in the past decade, according to the Census Bureau. A much bigger group –4.6 million California households –is paying 35 percent or more, above the traditional 30 percent norm, up by 1.7 million in a decade.

Its cheapskates like this, that are killing the hosuing market and in turn, the economy. Everybody knows that you have to be willing to fork over at least 3/4 of your next 30 years of work in order to live in sunny california, because california is like, so eff'ing cool!

If you got rid of appraisers and agents, everyone could afford a home, paying less than 1/3 of their income for housing.

Why are stories like these still coming up? I thought worst was behind us. Wasn't 2009 bottom the bottom of the housing market?

I'm under 25% of my income.
A number I learned from people from a time, smarter than the idiots running around changing and rewriting the rules prudence.

Funny when you're less than 25%, you don't really give a crap what the market does.

No matter what any ones payment is, what happens if they lose their job? I guess that couldn't happen in this wonderful economy. Has anyone tried- No Debt?

errc says

Today, some 2.7 million California households –homeowners and renters –pay at least half their income for housing.

Well, they must be pretty fucking stupid.

gonMonnemyGox says

i w ksztalt krzyza naznaczony przez los z tego zycia stanowi najpowszechniejsza forma dzumy posocznicowej i dzumy.

i am convinced!

No matter what any ones payment is, what happens if they lose their job? I guess that couldn't happen in this wonderful economy. Has anyone tried- No Debt?

Yes and it is wonderful and sobering at the same time. We were playing the game like everyone else, and then I realized how much interest we were paying on credit cards. We paid them off and never looked back. We inherited the house, and we are about half the value in fixing it up. Still have miles to go.

jan says

No matter what any ones payment is, what happens if they lose their job? I guess that couldn't happen in this wonderful economy. Has anyone tried- No Debt?

No worries. Squat, save a few years salary by not making any mortgage payments. Wait 2 years, then start over again.

HEY YOU says

No matter what any ones payment is, what happens if they lose their job? I guess that couldn't happen in this wonderful economy. Has anyone tried- No Debt?

When you sign a lease, you aren't exactly taking on debt the same way as you do with a mortgage, but it's a liability on your balance sheet. If you lose your job you still have to pay rent next month, the same as you would have to pay a mortgage. True, with renting your lease term is probably relatively short in comparison to a 30 year loan, but you still do have to live somewhere, probably at some cost.

I don't think it's a good idea to take out a home loan that you would be pressed to afford, but I don't think you need to avoid all debt. Pick a house that is fairly priced (so you can reasonably "get out" if you need to down the road), and one that you could afford the payment on even with a significant (40%?) pay cut. That way you can still live pretty stress free.

I pay 1/3 of my take home pay ... in RENT!

Stupid, lousy job market. People pay more for HOA fees than I do for housing. #endofwhine

errc says

Today, some 2.7 million California households –homeowners and renters –pay at least half their income for housing.

Bill Gorton: "How did you go bankrupt?"
Mike Campbell: "Gradually, and then suddenly."
--Hemingway (The Sun Also Rises)

Watch and learn, the best I could find covering the basis of this entire mess outlined step by step
http://www.youtube.com/embed/JYTyluv4Gws&feature=related

jan says

We inherited the house

Aren't you glad the older generation left you a house? Not everyone is as fortunate. You have a lot to thank for this Thanksgiving.

rfsanders says

I pay 1/3 of my take home pay ... in RENT!

Stupid, lousy job market. People pay more for HOA fees than I do for housing. #endofwhine

That's normal and near the requirement for a mortgage. Most people spend 50% on rent believed it or not

in the article, it was great to hear that Fullerton-based Cheryl's realtor (R) told her not to buy the condo in 2006 because it was overpriced.

maybe realtors (R) aren't that bad after all?

My fiancee and I are fortunate. We are both in high tech, and at the same time have what some would consider to be "low standards" for where we live. Living expenses (rent, utilities, internet) are 10.3% of annual gross base pay, and 8.9% if bonuses & commission are factored in.

It's no wonder that I look at buying a house anywhere in the SFBA and cringe. My quality of life would take a big old shit. Damn near everyone else in our income bracket is putting 30%+ of their income into their houses, and we would have to as well. Or, we could buy a house and put a lot less than 30% in but have to consume 8-10 hours a week commuting (my commute is a 5 minute bike ride now). No, thank you!

What's interesting looking at that chart is that none of the super-high percentage payers appear in the areas you'd expect: aka- SF, Silcon Valley, etc etc. All of the red areas are out in places like the Central Valley, Mendocino, etc.

Being a limosine liberal can be an expensive luxury...

AdamCarollaFan says

maybe realtors (R) aren't that bad after all?

nah, they're really that bad.