And I am still shocked about the perception that an $80k/year income is inadequate to save up a down payment. Assuming you live reasonably, that is still more then enough to save up quite a big chunk of money after a few years.

Let’s do some math. A young couple with one child, $80k/year income.
– Federal tax $7000
– Social security and medicare tax $6000
– State tax $3000
– Health insurance employer contribution $200*12 = $2400 (assuming they have good benefits)
– Rent (2br apartment in a decent area) $1500*12 = $18000
– Utilities $200*12 = $2400
– Daycare $800*12 = $9600 (could be worse)
– Two car loans (two Civics/Corollas) $300*2*12 = $7200
– Car insurance $300*12 = $3600
– Gasoline (two commutes of 10 miles each on weekdays, staying at home on weekends, at 35 mpg and $3.50 gas) $1000
– Food for two adults and a child, say $500*12 = $6000

That leaves $13800/year from which they are to save $80k down payment on a median house in Mira Mesa, $120k down payment on a median house in RB/RP, or $180k down payment on a median house in Carmel Valley.

Note that I didn’t include any spending on entertainment, clothes, vacations, toys for the child, etc. etc. I’m assuming that nobody ever gets sick, cars don’t break, there are no five-digit credit card balances or student loans in the picture.

And a dual income couple making that much money (is most likely) either very young – or probably shouldn’t be buying in CV, PQ, MM, etc but somewhere a bit more in-line with their salary ranges.

In your mind, what area would be in line with their salary ranges?