We have seen the future, and it sucks.

How Many Years of Your Life Will Your House Cost You?

9th October 2017

Read it.

“Of course that’s not how mortgages actually work. It’s much worse than that”, he writes in a wryly funny piece, exploring the wide range in the accessibility of home ownership across the geography of the U.S. Expanding on the (overly optimistic) annual salary/house price comparison, he found that “the typical ratio of median home value to the median income is 1:3”.

My rule-of-thumb is that you can afford a house that costs twice your annual income.

I have no idea where I came up with that — perhaps some vague recollection from my youth — but it works out pretty well.

One Response to “How Many Years of Your Life Will Your House Cost You?”

  1. bluebird of bitterness Says:

    Our first house cost only a few thousand more than a year’s income, but that was thirty-nine years ago. Now we pay more in income taxes every year than what our first house cost. I’m not mathematically astute enough to do the inflation-adjusted numbers, so the fact is pretty much meaningless, but still amusing. 🙂