Discussion:
median and mean incomes and buying median and mean houses in certain metro areas.....
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michael anderson
2023-12-22 22:39:22 UTC
Permalink
was just thinking about this as I'm about to buy a place in Atlanta to be closer to family.

I get a chuckle out of how idiots and the media(ok....same thing I know) report these things like they mean something.

Let's take Atlanta, and not only Atlanta but ITP atlanta(which also includes places like Brookhaven, Vinings, etc).

I'll read something like "In metro atlanta median(or sometimes) household income is 89k and single family houses average almost 355k"

ok, first off it's important to note that income(and housing costs) are very bi-modal. The people buying the 'average' house aren't making 89k as a freaking family(not at these interest rates and not without family money, inheritance, etc). More like 250-300k as a family(mostly DINKS anyways).

And mean or median housing price is ridiculous in the context it is often used.

I always remind you guys of this principle: city A can have average housing costs of 350k and city B could have average housing costs of 600k, but that *doesn't* mean average housing cost of a reasonable/safe house is more affordable in A than B. If most all of B's area contains safe/reasonable houses and only 15% of A's does, then A from a practical standpoint is far more expensive.

You see this a lot in comparisons of urban/larger areas vs a more remote suburb. The remote suburb 'seems' more expensive; no......it only seems that way because you're including lots of houses in a war zone that the intended audience would never consider purchasing.

ITP Atlanta is a good example of that. There are no houses for this 'average' of whatever it is they report(high 300s I think).

In reality these are the 'livable' areas inside the perimeter of Atlanta with single family residences: Ansley park, morningside, parts of midtown but not many houses there anyways, most of Virginia-Highland, parts of Inman park, parts of Lake Claire, about 70% of druid hills, 30030 Decatur(not the part in a different zip code that says decatur), most of Vinings and Brookhaven and Chamblee, and most of Buckhead. I know that doesn't mean much specifically to people who don't know atlanta, but the point is that MOST of atlanta that is included in this average figure doesn't contain reasonable houses anyone that doesn't have a death wish would consider living.

So in reality the average ITP atlanta single family residence housing price is about 1.2 million. And all of a sudden the 'affordability' picture becomes much more complicated. But does the idot media report this? no....of course not.

And atlanta is not alone on that....Im sure many urban areas are like this.

Now when they say something like the average buckhead housing price is about 700-800k(Im not sure of the exact number), that does mean something because a much higher percentage(in fact most) of the housing stock there is fine to live in.

So never ever base where you decide to move based on where these sorts of numbers say it is affordable to purchase a home, because they can be very very misleading.

Just my rant for the day lol.......
unclejr
2023-12-23 03:07:27 UTC
Permalink
Post by michael anderson
was just thinking about this as I'm about to buy a place in Atlanta to be closer to family.
I get a chuckle out of how idiots and the media(ok....same thing I know) report these things like they mean something.
Let's take Atlanta, and not only Atlanta but ITP atlanta(which also includes places like Brookhaven, Vinings, etc).
I'll read something like "In metro atlanta median(or sometimes) household income is 89k and single family houses average almost 355k"
ok, first off it's important to note that income(and housing costs) are very bi-modal. The people buying the 'average' house aren't making 89k as a freaking family(not at these interest rates and not without family money, inheritance, etc). More like 250-300k as a family(mostly DINKS anyways).
And mean or median housing price is ridiculous in the context it is often used.
I always remind you guys of this principle: city A can have average housing costs of 350k and city B could have average housing costs of 600k, but that *doesn't* mean average housing cost of a reasonable/safe house is more affordable in A than B. If most all of B's area contains safe/reasonable houses and only 15% of A's does, then A from a practical standpoint is far more expensive.
You see this a lot in comparisons of urban/larger areas vs a more remote suburb. The remote suburb 'seems' more expensive; no......it only seems that way because you're including lots of houses in a war zone that the intended audience would never consider purchasing.
ITP Atlanta is a good example of that. There are no houses for this 'average' of whatever it is they report(high 300s I think).
In reality these are the 'livable' areas inside the perimeter of Atlanta with single family residences: Ansley park, morningside, parts of midtown but not many houses there anyways, most of Virginia-Highland, parts of Inman park, parts of Lake Claire, about 70% of druid hills, 30030 Decatur(not the part in a different zip code that says decatur), most of Vinings and Brookhaven and Chamblee, and most of Buckhead. I know that doesn't mean much specifically to people who don't know atlanta, but the point is that MOST of atlanta that is included in this average figure doesn't contain reasonable houses anyone that doesn't have a death wish would consider living.
So in reality the average ITP atlanta single family residence housing price is about 1.2 million. And all of a sudden the 'affordability' picture becomes much more complicated. But does the idot media report this? no....of course not.
And atlanta is not alone on that....Im sure many urban areas are like this.
Now when they say something like the average buckhead housing price is about 700-800k(Im not sure of the exact number), that does mean something because a much higher percentage(in fact most) of the housing stock there is fine to live in.
So never ever base where you decide to move based on where these sorts of numbers say it is affordable to purchase a home, because they can be very very misleading.
Just my rant for the day lol.......
Weird flex, bruh.
MummyChunk
2023-12-23 15:07:43 UTC
Permalink
Post by michael anderson
was just thinking about this as I'm about to buy a place in Atlant
to be closer to family.
Post by michael anderson
I get a chuckle out of how idiots and the media(ok....same thing
know) report these things like they mean something
Post by michael anderson
Let's take Atlanta, and not only Atlanta but ITP atlanta(which als
includes places like Brookhaven, Vinings, etc)
Post by michael anderson
I'll read something like "In metro atlanta median(o
sometimes) household income is 89k and single family houses averag
almost 355k
Post by michael anderson
ok, first off it's important to note that income(and housing costs
are very bi-modal. The people buying the 'average' house aren'
making 89k as a freaking family(not at these interest rates and no
without family money, inheritance, etc). More like 250-300k as
family(mostly DINKS anyways)
Post by michael anderson
And mean or median housing price is ridiculous in the context it i
often used.
Post by michael anderson
I always remind you guys of this principle: city A can hav
average housing costs of 350k and city B could have average housin
costs of 600k, but that *doesn't* mean average housing cost of
reasonable/safe house is more affordable in A than B. If most all o
B's area contains safe/reasonable houses and only 15% of A's does
then A from a practical standpoint is far more expensive.
Post by michael anderson
You see this a lot in comparisons of urban/larger areas vs a mor
remote suburb. The remote suburb 'seems' more expensive; no......i
only seems that way because you're including lots of houses in a wa
zone that the intended audience would never consider purchasing.
Post by michael anderson
ITP Atlanta is a good example of that. There are no houses fo
this 'average' of whatever it is they report(high 300s I think).
Post by michael anderson
In reality these are the 'livable' areas inside the perimeter o
Atlanta with single family residences: Ansley park, morningside, part
of midtown but not many houses there anyways, most o
Virginia-Highland, parts of Inman park, parts of Lake Claire, abou
70% of druid hills, 30030 Decatur(not the part in a different zip cod
that says decatur), most of Vinings and Brookhaven and Chamblee, an
most of Buckhead. I know that doesn't mean much specifically t
people who don't know atlanta, but the point is that MOST of atlant
that is included in this average figure doesn't contain reasonabl
houses anyone that doesn't have a death wish would consider living
Post by michael anderson
So in reality the average ITP atlanta single family residenc
housing price is about 1.2 million. And all of a sudden th
'affordability' picture becomes much more complicated. But does th
idot media report this? no....of course not.
Post by michael anderson
And atlanta is not alone on that....Im sure many urban areas ar
like this
Post by michael anderson
Now when they say something like the average buckhead housing pric
is about 700-800k(Im not sure of the exact number), that does mea
something because a much higher percentage(in fact most) of th
housing stock there is fine to live in.
Post by michael anderson
So never ever base where you decide to move based on where thes
sorts of numbers say it is affordable to purchase a home, because the
can be very very misleading.
Post by michael anderson
Just my rant for the day lol......
I think it would b
really easy to just take a look at Zillow to get an idea of what th
reality is in regards to the housing situation in any particular area


This is a response to the post seen at
http://www.jlaforums.com/viewtopic.php?p=657709731#65770973

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