Green Street

 

 

Wall Street Journal: So You Make $100,000? It Still Might Not Be Enough to Buy a Home

According to The Wall Street Journal,

It takes an annual household income of about $90,000 to afford Denver’s median-priced house, which costs around $471,000, according to HSH. But that is assuming buyers have 20%, or about $94,000, for a down payment.

“The lack of savings for a down payment in this country is grossly underestimated,” said John Pawlowski, a housing analyst at Green Street Advisors, who estimates that the typical renter’s net worth is about $5,500. “Consumer balance sheets are not good.”

In Stapleton, where Ms. White lives, the typical household income is more than $135,000. Tom Cummings, whose company manages some 240 rental homes in the neighborhood, said his typical tenant is a two-income family with children, drawn by the neighborhood’s top-rated schools. Some are recent transplants unsure if they’re staying long-term. Others can’t afford to buy, he said.

To read the full article, click here.