The Illusion of a Six-Figure Income: Why My Family Can’t Afford a House in twenty twenty-four

We’re living the dream… or at least that’s what our bank account should reflect, right? My husband and I pull in a combined household income that looks pretty sweet on paper. We even managed to buy a cute little condo back in two thousand and twenty – you know, right before the world decided to lose its collective mind. Our plan was to ride out the condo life for a few years, build up some equity, and then make the big leap to a house with a yard, maybe even one of those fancy kitchen islands everyone’s always raving about. Sounds reasonable, yeah? Well, buckle up buttercup, because the housing market has officially entered the Twilight Zone, and our six-figure income suddenly feels about as robust as a soggy tissue.

The Great American Housing Conundrum

Here’s the thing: it’s not just us. The whole housing situation has gone full-on bananas. It’s like everyone and their pet goldfish is trying to buy a house right now, and there simply aren’t enough rooftops to go around. Throw in sky-high home prices, interest rates that would make a loan shark blush, and a severe lack of inventory, and you’ve got yourself a recipe for a full-blown affordability crisis. Don’t just take my word for it, though. A whopping ninety-three percent of Americans are seriously stressed about rising home prices, and it’s putting a serious damper on the whole “achieving the American Dream” thing. Bankrate even went so far as to crunch the numbers, and their report claims you need to be raking in a cool $one hundred and ten thousand, eight hundred and seventy-one bucks a year to even think about affording a median-priced home these days. Yikes.

Mass-achusetts, More Like Mass-ive Housing Costs

Now, let’s zoom in on our little corner of the world: Massachusetts. Apparently, the cost of living here decided to take a page out of Beyonce’s playbook and go “Crazy in Love” with inflation. To even sniff at the possibility of buying a house in this state, you need to be earning at least $one hundred and sixty-two thousand, four hundred and seventy-one per year. And while our combined income technically clears that hurdle, like I said before – it’s a bit more complicated than that. The average home price in our area is hovering around $five hundred and ninety-nine thousand, nine hundred and fifty, and that’s before you factor in the fact that most of these places are stuck in a time warp and in desperate need of a serious makeover.

We’re talking gut renovations, people. If we want a “turnkey” home – you know, one where we don’t have to immediately start tearing down walls and battling ancient plumbing – we’re looking at a cool $seven hundred and fifty thousand… or more. And let me tell you, the thought of pouring that much of our hard-earned cash into a mortgage payment makes my soul hurt (and probably my accountant cry).

Beyond the Numbers: Our Budgetary Constraints

Okay, so maybe on paper, we look like we’re rolling in dough. But let’s get real for a sec. Once you factor in the government’s cut (taxes, ugh), our retirement contributions (gotta secure that future, yo!), and our savings goals (because, emergencies), our monthly disposable income shrinks faster than my patience during a toddler tantrum. We’re left with a not-so-whopping $nine thousand, three hundred to cover everything else life throws our way.

Now, that might sound like a decent chunk of change to some, but trust me, it disappears faster than a plate of cookies at a preschool party. Rent (or in our case, a hefty mortgage payment on the condo), utilities (because apparently, keeping the lights on costs a small fortune), groceries (have you seen the price of avocados lately?), childcare (our tiny human is an expensive date), and all those other miscellaneous expenses that pop up like unwanted weeds in a garden – it all adds up, fam.

And yeah, I know what you’re thinking: “Just cut back on your lattes and avocado toast, you entitled millennials!” But here’s the thing – we already make conscious choices about our spending. We prioritize things like maxing out our retirement accounts (because retiring early sounds way more appealing than working until we’re ancient), investing in our daughter’s education (college ain’t getting any cheaper, folks), and yes, even indulging in the occasional fancy coffee or dinner out (because sometimes a mama just needs a break, okay?).

The Lending Landscape: Factors Affecting Affordability

Even if we threw all caution to the wind and decided to chuck our budget out the window (don’t worry, our financial advisor talked us off that ledge), there’s another hurdle in our homeownership quest: the wonderful world of lending. Turns out, banks don’t just hand over wads of cash to anyone with a pulse and a dream. They like to see things like a solid credit score (check!), a manageable debt-to-income ratio (double-check!), and proof of stable income (uh oh…).

Now, thankfully, we have excellent credit – thanks, in part, to my borderline-obsessive habit of checking my credit report like it holds the secrets to the universe. And we’ve been pretty diligent about avoiding debt like the plague (student loans, we’re coming for you next!). But here’s the kicker: my income, as a freelancer, is about as predictable as the weather in New England. One month I’m raking in the big bucks, the next I’m praying my meager savings can cover the grocery bill.

When we applied for our current mortgage, the bank basically laughed in the face of my fluctuating income and based our approval solely on my husband’s steady paycheck. And while we were grateful to even qualify for a mortgage at all, it definitely put a damper on our borrowing power. So yeah, the lending landscape is just another reminder that even with a six-figure income, the path to homeownership is paved with obstacles.

Navigating the Housing Market: Strategies for Affordability

So, where does that leave us? Are we doomed to a lifetime of condo living, forever dreaming of spacious backyards and that elusive kitchen island? Not necessarily. While the current housing market might feel like a scene out of a dystopian novel, there are still some strategies we (and others in the same boat) can employ to make our homeownership dreams a reality – eventually.

Here are a few ideas we’re considering (and some we’ve already implemented) to navigate this crazy housing market:

• Play the Waiting Game: As much as it pains us to admit it, sometimes the best offense is a good defense. We’re seriously considering hitting the pause button on our house hunt for a while and seeing how things play out. Mortgage rates can’t stay this high forever, right? (Please say I’m right.) And who knows, maybe the market will cool off a bit, giving us a fighting chance to actually compete with the hordes of cash buyers out there.
• Boost That Credit Score: As I mentioned earlier, we’re lucky enough to have excellent credit, but even a few extra points can make a difference in securing a lower interest rate. So, we’re all about maintaining that good credit karma by paying our bills on time, keeping our credit utilization low, and resisting the urge to open a million new credit cards (no matter how tempting those sign-up bonuses may seem).
• Tackle Debt Like a Boss: We’re fortunate to have minimal debt (thanks, Dave Ramsey!), but if you’re carrying around a hefty credit card balance or student loan payments are sucking the life out of your budget, tackling those bad boys should be a top priority. Freeing up that extra cash flow can make a huge difference in your ability to qualify for a larger mortgage or even just make those monthly payments more manageable.
• Save, Save, Save: Yeah, I know, saving money can feel about as fun as watching paint dry, but it’s crucial if you want to buy a house in this market. The larger your down payment, the lower your loan amount and monthly payments will be. Plus, it shows lenders you’re serious about this whole homeownership thing. We’re channeling our inner squirrels and stashing away every extra penny we can find.
• Embrace the Budget: I used to think budgets were the enemy of fun, but creating a realistic budget has been a game-changer for our finances. It helps us track our spending, identify areas where we can cut back (sorry, daily lattes), and make sure we’re prioritizing our financial goals.

These are just a few ideas to get the ball rolling. The key is to find what works best for your unique financial situation and remember that even small steps can lead to big progress over time.

Conclusion: Accepting Our Reality, For Now

So, there you have it – the not-so-glamorous truth about living with a six-figure income in a housing market gone wild. It’s frustrating, it’s disheartening, and it definitely makes us want to shake our fists at the real estate gods every now and then. But it’s also our reality, and we’re choosing to face it head-on.

Do we regret buying our cozy little condo back in two thousand and twenty? Not one bit. It’s our little slice of home, and it’s allowed us to build equity and experience the joys (and challenges) of homeownership. However, we’ve come to terms with the fact that our dream of upgrading to a bigger place with a yard and that coveted kitchen island might have to wait a while.

For now, we’re focusing on what we can control: slaying our financial goals, enjoying our sweet little condo, and teaching our daughter the value of a dollar (and maybe a thing or two about the perils of the housing market). Because sometimes, the best things in life are worth waiting for – even if it means putting those house-hunting apps on hold for a while.