Seattle Bubble

News & discussion about real estate & the housing bubble in the Seattle area.

Seattle Bubble - News & discussion about real estate & the housing bubble in the Seattle area.

Entries Tagged as 'social'

Without Mom’s Income, Seattle is Unaffordable

By The Tim on July 13th, 2007 at 9:12 AM · 49 Comments

The Seattle P-I is running an article about some interesting survey results regarding mothers’ attitudes toward working. Despite the fact that more mothers are working full-time, fewer think that it’s best for the family.

After generations of debate about working mothers, only about a fifth say full-time jobs are ideal, fewer than held those views 10 years ago, the Pew Research Center reported in a survey released Thursday.

Yet most of these women aren’t getting what they want. Although 60 percent of working mothers say part-time jobs were ideal, only 24 percent actually hold those positions, Pew reported, citing Bureau of Labor Statistics data.

How does this relate to housing, you ask? Well, why do you think they’re working full time when they believe their family would be better off if they didn’t?

Nicole Grant is one of those mothers looking for work-family harmony as an apprentice electrician and mother of a toddler. The 29-year-old can’t work part-time and says most employers simply haven’t adjusted to women in the workplace.

Most mornings Grant leaves her Columbia City home by 6 a.m., long before her 1-year-old son Flynn wakes, to get to work. Without her income, she and her husband, a general contractor, couldn’t afford to live in Seattle.

“Despite taking a lot of pride in my work, I’m regularly overwhelmed emotionally,” Grant added.

Now, the article doesn’t specify whether Mr. & Mrs. Grant are renting or paying a mortgage, but I suspect it’s the latter. Granted, even when renting, Seattle can be unaffordable for a family on a single below-median income. But don’t general contractors make a pretty decent wage? Let’s run some numbers…

Using the Center for Housing Policy’s online tool, we can compare the income required to afford to buy vs. rent in Seattle, and how the income of various occupations stack up. The tool doesn’t have an option for “general contractor,” so I selected “Construction Laborer” and “Construction Manager.” I think it’s safe to assume that as a general contractor, Mr. Grant’s income is somewhere between those two. Here’s what the situation looks like for a general contractor and an electrician buying a home in the Seattle area:

CHP: Buying in Seattle

It looks like Nicole Grant was right. According to the CHP, a $72,000 salary from her husband plus a $50,000 salary of her own only barely add up to enough to buy that Columbia City home. But maybe they’re renters. Let’s see how that looks…

CHP: Renting in Seattle

Oh my. It looks as though they would be able to afford to “live in Seattle” on just one income, even if her husband was making a construction laborer’s wage of just $18.67/hour ($38,839/year).

Clearly there is a lot of supposition here, and we don’t have the complete picture. Maybe they are renting, but couldn’t find a 2-bedroom apartment for under $900 per month (although ForRent.com shows plenty). Or maybe they “need” more than two bedrooms. However, it would appear that the need to “own” a house is more important to the Grants than Nicole being able to stay home, and avoid being “regularly overwhelmed emotionally.”

I have a feeling that’s the case for a large number of full-time working mothers. Home “ownership” has become so important, that people have become willing to sacrifice their financial, emotional, and physical well-being to obtain it. I’m not passing judgement on people’s personal choices, but I do have a problem with someone making a general statement like “we can’t afford to live in Seattle on just one income” when the truth is in fact “we can’t afford to buy a ridiculously overpriced home in Seattle on just one income.”

You make choices, and you live with them.

(Paul Nyhan, Seattle P-I, 07.13.2007)

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Seattle Becoming an Upper-Class “Resort Community”?

By The Tim on June 5th, 2007 at 2:36 PM · 19 Comments

P-I columnist Bill Virgin sees the increasing unaffordability of housing in the Puget Sound as just another example of the big squeeze being put on the middle class:

Billboard not yet spotted along state Route 99:

Will the last middle-class family leaving Seattle please turn out the lights?

The future — or lack thereof — of the middle class has been on the minds of a lot of people lately. Escalating housing prices have many worried that the middle class is being priced out of the city. Three locals of the United Food and Commercial Workers union are sponsoring a Town Hall forum Sunday that asks, “Is Puget Sound losing its middle class?”

The expectation (more than a hope) was that the upward migration would continue. A lucky few might move up to the status of wealthy. An unlucky few might drop into the category of poor. On the whole, though, the middle class would continue to grow.

That notion is now under attack — from several directions. In Seattle, for example, the worry is that even with a job that pays what most would consider a comfortable wage, only a privileged few will be able to afford a house in the city, transforming the city into a resort community for well-to-do yuppies and empty nesters. (And if they can afford the pricey condos engulfing the city, do they still qualify as middle class?)

I’m not really one to pontificate on the philosophical social issues related to the housing bubble, but I thought the column might interest some of you.

So, does it?

(Bill Virgin, Seattle P-I, 06.05.2007)

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