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Homes "unaffordable" in 99% of nation for average American
(www.cbsnews.com)
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this post was submitted on 01 Oct 2023
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The phone also stands out.
$250/month is just nuts! We pay like $30/month for two lines, though I could see up to $60/month for two lines being reasonable (unlimited data at Mint for two lines). We spend about $500 every 3 years or so for phones, so add in ~$30/month to save for that, round a bit for taxes, and you really shouldn't be paying more than $100/month for two lines.
Insurance also seems high. We pay ~$50/month for two cars, though they're older cars and we are in our 30s with clean records, so we've got that going for us.
So since I don't have a car payment, have inexpensive insurance, and don't pay out the nose for my phone, I save like $1400/month vs those numbers you quoted. So if the average person actually spends that much (I doubt it), by cutting out some unnecessary expenses, they could buy a house.
I'm not sure if this is really representative of everyone, but it's telling that the news decided to use that example when trying to convince viewers the economy is bad. I'd love to see more research into middle class spending habits, as I suspect that predatory lending and consumerism cause problems more than inflation.
Agreed. For now, you can check out the BLS data here. The categories leave a lot to be desired, but I think it's still interesting. Specifically, the amount people spend on transportation is terrifying, and that's definitely on the "predatory lending" end of the spectrum.
We have clean driver records and paid off cars, and insuring 3 cars 4 drivers is running $900 a month for us here. That is car insurance alone, no car payment. Phone we do pay $200 but it's covering 8 people, calls text unlimited data on 8 phones so if we made the kids pay could reduce that to about $50.
But your $50 car insurance is unusual. And not everyone can get a rate like that while simultaneously living close enough to work to manage the rest of the transportation expenses.
I don't think it's that unusual in my area. I've never paid more than $450 or so for 6-months of coverage on two cars, and I've been with multiple insurers. Granted, I get liability only, but comprehensive coverage isn't that much more expensive (esp. on the older cars I drive). Something different is happening in Florida that isn't happening here.
And I don't live that close to work, my commute is ~25 miles each way. I live in the suburbs and work in the city.