When we hear the term “low income” we often think of poor, destitute or even homeless people. We think of people who are unemployed, have never had jobs, and live on welfare alone.
Obviously, that couldn’t be further from the truth, but it’s what pops into peoples minds. Well let us squash that rumor right now.
Do you know what the Average house cost is in California. $352,000! That’s the median price for a house in the state of California. Do you know how much a person would have to earn to afford a house like that? $135,000!
Even in parts of California that are not as high priced, like Sacramento, it’s easy to fall into the low income category. There, the median house price is $205,000 which means you’d still have to earn around $79,000/year to afford a house.
The disconnect between housing costs and affordability is getting bigger each year.
Even in homes with 2 family incomes it is extremely hard to be able to afford a house.
So next time you think of the term “low income,” let’s remember we are talking about a huge part of the population and not necessarily those living in poverty.