What HHI to feel comfortable with a family in a close-in city like Bethesda/Arlington/McLean?

[Anonymous]

We make a decent amount, but it feels crazy to attain the American dream in our desired location. House, kids, cars, expenses - it's a lot.

At what point from an income perspective do you start feeling this is doable?

[Anonymous]

Anonymous wrote:We make a decent amount, but it feels crazy to attain the American dream in our desired location. House, kids, cars, expenses - it's a lot.

At what point from an income perspective do you start feeling this is doable?

When you have equity from other RE or investments. Or you are very high earning and can save DP quickly and also afford a high mtg amt adn home maintenance with RE taxes. I don’t remember a decade when non high earning or already having accumulated wealth person could afford an SFH in a premium area that’s not a dump or an apartment in a city that’s not a dumpy studio or living with roommates in a rental. I am GenX. The train of American dream has either departed long ago or people just have higher standards now and affordable housing is replaced with luxury housing in premium areas.

[Anonymous]

You really need two premium incomes ($300k each) or one super-premium income ($600k).

The super-premium options are typically elevated roles in law (BigLaw), finance (hedge funds, VC, PE), medicine (surgeon), and corporate (C-suite), or equity-rich positions in tech or one’s own small business.

[Anonymous]

We were comfortable on two decent government salaries. We made compromises like living on a busy street, but had a very good quality of life. I think a HHI of $300k is plenty.

[Anonymous]

We make good money but not big big money for the area. One makes 300 one makes 90. We now live in a 2900sq ft house in Vienna. We could not buy a single family home until we were 43. We brought smaller town homes and slowly traded up. It can take longer here but if it’s your goal you can save to it.

[Anonymous]

We were comfortable at 600k but we had a low mortgage and no other debt.

[Anonymous]

Anonymous wrote:We make good money but not big big money for the area. One makes 300 one makes 90. We now live in a 2900sq ft house in Vienna. We could not buy a single family home until we were 43. We brought smaller town homes and slowly traded up. It can take longer here but if it’s your goal you can save to it.

Lol. Vienna is not close in.

[Anonymous]

How much passive income do you have? Don't use your passive income to buy a house. It will be stuck there, grows slowly or not at all, and can't help you with the house expenses.

[Anonymous]

To get a real answer you first need to be more specific about how you define the American dream. That "expenses" category is where you'll see the biggest variation in the incomes people think they need. Also, SFH or town house? One SAHP or both parents working (and thus needing full time child care)?

[Anonymous]

We're a family of 4 with $300k in Chevy Chase and it's fine

[Anonymous]

Anonymous wrote:To get a real answer you first need to be more specific about how you define the American dream. That "expenses" category is where you'll see the biggest variation in the incomes people think they need. Also, SFH or town house? One SAHP or both parents working (and thus needing full time child care)?

And you need to realize that most people chiming in to say $300k bought their homes 10-20 years ago and locked in a 3 percent mortgage.

[Anonymous]

500k+ but it depends on if you are buying a new house with no money down and starting or you are old 40+ and have a large down payment.

[Anonymous]

Bought in 2022, in Rockville at age 28. Hhi of 390k. We’re comfortable but if we had bought in Bethesda, we would have been tight. But part of my budget is aggressively saving for an early retirement at 45 so that affects what we’re willing to spend

I think Bethesda is doable on 350k-400k but depends on your spending habits and goals

[Anonymous]

Real answer: We are living the American dream but it's funded by previous generations plus what we earn. DH makes 300k, I make 90k. We bought in North Arlington in 2003 and the mortgage is paid off with family money. Family money also funded 529s and paid private school tuition.

[Anonymous]

It really depends on housing. I know many dual fed couples in Arlington, but they bought a while ago.

I also know families in apartments or condos, but many wouldn't be okay with that and want a SFH. Those family love being walkable and the community that comes with shared spaces like the local playground.