How rich are people buying 1-1.5 mil homes?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

[Anonymous]

House was $1.25M. HHI $300k. Between proceeds from the sale of our first house (bought for $800k when we made $225-250k) and some realized stock gains, we put enough down to keep our mortgage the same as the first house ~ 4K.

Don’t know our net worth or even how to calculate it - like do retirement account count? Unrealized investment gains? Doesn’t matter - we’re on track for our personal retirement and college saving goals.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

No, I grew up middle class and now I have a $1M+ home in Arlington. My life is very comfortable and my kids are beyond privileged. Just because everyone we know also has a $1M house and a similar lifestyle does not make it “middle”. We live in an affluent bubble that has little in common with how most middle class people in the US live. It just seems normal because we’re smack in the middle of the most contiguous counties in the US with a median household in ole over $100k. I live in “central Arlington” between Washington and Wilson. When I drive through the NE section of Arlington, I certainly do feel middle class in comparison. However I also drive through the neighborhoods south of Columbia Pike and then I feel rich. It’s all perspective.

[Anonymous]

Bought recently at 1.35 but also put about 100k of work in on top.

We are late 30s. HHI ranging from 500-700 over last 3 years. Net worth at about 3.25 M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

No, I grew up middle class and now I have a $1M+ home in Arlington. My life is very comfortable and my kids are beyond privileged. Just because everyone we know also has a $1M house and a similar lifestyle does not make it “middle”. We live in an affluent bubble that has little in common with how most middle class people in the US live. It just seems normal because we’re smack in the middle of the most contiguous counties in the US with a median household in ole over $100k. I live in “central Arlington” between Washington and Wilson. When I drive through the NE section of Arlington, I certainly do feel middle class in comparison. However I also drive through the neighborhoods south of Columbia Pike and then I feel rich. It’s all perspective.

No, you're living in your own bubble. Middle class elsewhere in the US live in much larger and nicer houses and have much better life quality. Your $1M shit shack dump in Arlington costs pennies elsewhere.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

No, I grew up middle class and now I have a $1M+ home in Arlington. My life is very comfortable and my kids are beyond privileged. Just because everyone we know also has a $1M house and a similar lifestyle does not make it “middle”. We live in an affluent bubble that has little in common with how most middle class people in the US live. It just seems normal because we’re smack in the middle of the most contiguous counties in the US with a median household in ole over $100k. I live in “central Arlington” between Washington and Wilson. When I drive through the NE section of Arlington, I certainly do feel middle class in comparison. However I also drive through the neighborhoods south of Columbia Pike and then I feel rich. It’s all perspective.

You don’t understand. You are making my point. You live near Bluemont. You are rich 22207 and you aren’t poor Columbia Pike. You are the middle. Average. I’m glad you feel fortunate, but it doesn’t change reality.

[Anonymous]

these are the houses rich people are buying in Chicago...much more than that price tag.
Avg price in Chicago for high-end homes is in the $3m range.... and there is no inventory so bidding wars galore.

https://www.estately.com/listings/info/2435-n-burling-street
https://www.redfin.com/IL/Chicago/1857-N-Orchard-St-60614/home/113095994

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

No, I grew up middle class and now I have a $1M+ home in Arlington. My life is very comfortable and my kids are beyond privileged. Just because everyone we know also has a $1M house and a similar lifestyle does not make it “middle”. We live in an affluent bubble that has little in common with how most middle class people in the US live. It just seems normal because we’re smack in the middle of the most contiguous counties in the US with a median household in ole over $100k. I live in “central Arlington” between Washington and Wilson. When I drive through the NE section of Arlington, I certainly do feel middle class in comparison. However I also drive through the neighborhoods south of Columbia Pike and then I feel rich. It’s all perspective.

No, you're living in your own bubble. Middle class elsewhere in the US live in much larger and nicer houses and have much better life quality. Your $1M shit shack dump in Arlington costs pennies elsewhere.

Agree. $1m home is not rich or wealthy at all.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Compared to total net worth? I agree with you. Essentially these folks are all dependent on their continued gainful employment to fund their lifestyles.

Lol, what? Yes, most of us have to work to get money to live. That is called capitalism.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Compared to total net worth? I agree with you. Essentially these folks are all dependent on their continued gainful employment to fund their lifestyles.

Lol, what? Yes, most of us have to work to get money to live. That is called capitalism.

Not according to this PP...who thinks that when we were poor grad students, we had extra money to invest, but just didn't understand the power of compounding.

I was literally eating ketchup on saltines to save money. Growing passive income streams at that point was quite an impossibility, I assure you.

[Anonymous]

These data points don't make sense without age. For example, we are $250K HHI (one spouse working) and $6M NW but live in a 850K house. But we are mid-50s. Should we upgrade to a $1.5M house? Can't make that call without understanding who's buying those more expensive homes..

BTW, buying a $1.5M house does not make you rich. That's reserved for $3M and over in this area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Compared to total net worth? I agree with you. Essentially these folks are all dependent on their continued gainful employment to fund their lifestyles.

Please explain to me how, as a 41 yo with a family but no family money, I could have a lifestyle that would not be dependent on my continued gainful employment?

This. Exactly. 99% of people have to be employed to live. Hello!!!

[Anonymous]

Paid $1.4mm for our house, HHI of around $650k at the time i believe, dual income household.

Mid and late 30s at the time.

We have other large expenses as well that at the time made a more expensive house too much of a reach. We had 3 kids in private preschool plus a FT nanny, and combined i would say those added up to $12k/month...now only one kid in preschool but still have the nanny.

With rates so low a few hundred thousand in housing cost doesn't really make a difference. You have to consider all of the other expenses. If we were 40 and childless with a $750k income we would have far more to spend on housing (if desired). And if we were 55 and empty nesters, same.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Wow it is amazing how much people have tied up in their houses.

Compared to total net worth? I agree with you. Essentially these folks are all dependent on their continued gainful employment to fund their lifestyles.

Lol, what? Yes, most of us have to work to get money to live. That is called capitalism.

Not according to this PP...who thinks that when we were poor grad students, we had extra money to invest, but just didn't understand the power of compounding.

I was literally eating ketchup on saltines to save money. Growing passive income streams at that point was quite an impossibility, I assure you.

I’m in the market for a house at around 1.5M price with cash from a trust that can only be used for housing and I feel pretty poor in this area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s a lot of dual income families making $350-$450k, rolling the equity from their starter home into the new home.

This, and with childcare and saving for college, they are barely above middle class.

As a dual income family making about $300k that rolled the equity from our starter home into a new $1.1 million home and also saves for college, no, sorry, you're wrong. Our household income alone makes us well above middle class. Then, of course, there's also the fact that we own a $1.1 million home. Just because we spend most of our money on stuff for rich people (like an expensive home and tax-advantaged college savings) and don't save like rich people doesn't make us any less rich.

I should’ve clarified. Middle class for close in DC suburbs. The average price of a single family home in Arlington is over $1m now. It’s by definition middle class.

No, I grew up middle class and now I have a $1M+ home in Arlington. My life is very comfortable and my kids are beyond privileged. Just because everyone we know also has a $1M house and a similar lifestyle does not make it “middle”. We live in an affluent bubble that has little in common with how most middle class people in the US live. It just seems normal because we’re smack in the middle of the most contiguous counties in the US with a median household in ole over $100k. I live in “central Arlington” between Washington and Wilson. When I drive through the NE section of Arlington, I certainly do feel middle class in comparison. However I also drive through the neighborhoods south of Columbia Pike and then I feel rich. It’s all perspective.

No, you're living in your own bubble. Middle class elsewhere in the US live in much larger and nicer houses and have much better life quality. Your $1M shit shack dump in Arlington costs pennies elsewhere.

That just means housing is expensive close-in to D.C., which makes a close-in house near D.C. a luxury items. Which means those of us who bought one own luxury items, not that we're middle class.