Comment by pbuzbee | Hacker News Reader

Comment by pbuzbee | Hacker News Reader

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The cost of homeownership is a huge factor for me.

When I started working in 2014, I figured I would need to save around $150k for a down payment because the median home price in Santa Clara county was around $800k. Now the median price is around $1.4M [1], so I'd need around $250k.

The growth in home prices has roughly matched my ability to save for a home, so almost seven years later I'm not any closer than I was in 2014.

I feel like my options are (A) live in an apartment forever, (B) hellish commute, or (C) leave. With starting a family on the horizon, Option C looks better every day.

[1] https://www.bayareamarketreports.com/trend/santa-clara-home-...

Not only that, but also consider the fact that you are paying 1.4M for a house that was likely built in the 60s, is not up to date at all, and has a perpetual tax liability of at least 15-18k per year (further raises in taxes are much more likely than not). The mortgage would also not be sustainable if one earner lost their job (or if the high-earner lost theirs), and remember that this high mortgage payment needs to be paid every month for 360 months. All of these are solid arguments against buying even if you did have the down payment.

Yes, exactly. A $1M mortgage is about $5k/month. Paying that means sacrificing other uses of money like retirement, child's college savings, vacations, etc.

And, as you pointed out, we would be in deep trouble if our income took a hit, or if housing prices tumble. If you buy into the high housing costs, you really need them to continue. It's a bad cycle.

Hah, I was in your exact same situation a couple of years ago and when my kid was born, I decided to leave Santa Clara for good. I have not regretted the decision yet. Not only was I able to afford a decent home, I am happy that I wont have to pay an insane mortgage for rest of my life. What I definitely miss about SFBA is the weather and diversity of good food.

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