Ugh, just lost a rather long post. Probably better for it. UCGAL, you’re technically correct. My point was figurative and not literal.
As craptcha points out, $75K to $113K is the squeeze zone now. you make enough that FICA rakes 7.65% of each additional dollar, the State rakes 9.3% of each dollar and the Feds want either their 15% if married or quarter if single. After taxes and housing a set of young DINKs making $75K will have about $600/week to cover everything else. Food, insurance, utilities, retirement, student loans, cars/bus, going out.
A family in the same range might with a couple kids have an extra $100-$200/month.
The house you buy doesn’t push your deduction high enough to beat the standardized deduction without major other expenses and if you have them you likely have serious problems.
That same $75K-$100K ‘family’ would likely feel pretty wealthy elsewhere, whereas here, they probably feel kind of strapped. That same feeling strapped family watches 30-40% of their annual raises get taken by taxes. And watch many things they buy with what’s left get hit for another 8% sales tax.
As for the BP house, I have to think of it some more or the real target buyer is now for that neighborhood. The location is a plus and curse at the same time. And to be honest, not a 100% sure what demographics shifts have occurred with the bubble. It used to be a nice integrated neighborhood of solid middle class families. I’m assuming it still is.
