I don’t think 225 or even 300 would be enough. Especially if you have kids. I don’t think people truly realize how home ownership has become completely out of reach for most, even for tech workers.
My wife and I live in a suburb of the Sacramento, CA area and have a combined household income of $400k and we have 20% saved for a $700k house (avg price in this area). But the mortgage costs would still be insane. We could either pay $2500/to rent a nice house (3-4bed 2b 2000sqft,we have no kids) or $4000-5000/mo for pretty much the same.
At this point in the housing market, buying makes no sense. I wish people would stop pushing the "American dream" of NEEDING to own a home. Homeownership is not a necessity, it is a luxury.
This American dream philosophy has caused very unfair policies where people who make $60k qualify for housing assistance and can buy houses for 0 down because the govt pays for some of their down payment[0].
If I can't enjoy the luxury of owning a home, why do my tax dollars pay for that luxury for those who earn less? I'm not anti socialism at all, either. I'm just stating that home ownership is a luxury in this day and age. Pay for people to live somewhere, yes. Provide them with mental health care, yes. I don't mind my tax dollars being used for those necessities. Helping with home ownership? In a market that already has fierce competition and low inventory? It's ridiculous.
I have often seen people on HN with mind boggling (to me) incomes to whom houses that seem relatively very inexpensive are inaccessible. Why is that? Naively I would think you could rent for 30k/y and save enough in just a few years to buy a house without a mortgage
At the same time people start earning those incomes, they are also paying $20k to $30k per year per kid for daycare. Couple that with $50k+ retirement savings (max 401k and HSA) and 2 $50k cars, and it can seem tight.
Also, the higher the pay, the rarer the source of income, and so lower probability of replacing your income if you lose your job. That means you might want to put down more than 20% to ensure your monthly mortgage payment is still possible even if your income drops by 30% to 50%. Such as if the wife has pregnancy complications and cannot work, etc.
