Reddit User Asks, 'How Do So Many People Afford Multi-Million Dollar Homes?' Says Even Six-Figure Salaries 'Mean Nothing In This Area'
Last week, a Reddit user sparked a heated discussion in the r/RealEstate subreddit by asking, “How do so many people afford multimillion dollar homes?” The person, living in a very high-cost-of-living (VHCOL) area in Southern California, shared their struggle to afford a home in a market where even livable houses cost around $3 million. Despite earning a six-figure salary and having a partner who is a law firm partner, they feel stuck. “Everyone says it's doctors and lawyers who live in these areas ... but we still can't afford it,” the post reads.
Hundreds of people chimed in to share their thoughts. The responses painted a revealing picture of how people manage to live in these exclusive neighborhoods.
A recurring theme was parental financial assistance. "There is almost zero chance anyone young could buy a mid-to-high-end SoCal home today without generational wealth," a person said. Another one bluntly stated that the Bank of Mom and Dad “is a hell of a bank!” and many shared stories of parents either gifting their kids down payments or outright buying the homes for them.
For example, one user from Lake Tahoe shared, "My realtor often deals with young clients whose parents buy the house and then serve as the bank to their kids, who make payments to them on the loan." Others explained how family wealth cushions the financial blow. “A lot of parents helped their kids buy houses after they realized their kids were planning to move out of state to somewhere more affordable and take the grandkids with them," one commenter explained.
Topic: Yep, depends on the area, sometime our 6-figure middle class income won't cut it (Read 138 times)