Affording the Jumbos? Income distribution for Seattle
Actually this is Seattle/Bellevue/Tacoma Metro area, from
The Census' American Community Survey, 2005
In case you are interested in who can really afford Jumbos....
Seattle-Tacoma-Bellevue, WA Metro Area
Estimate Margin of Error
Total: 1,280,591 (100.0)
Less than $10,000 83,767 (6.5)
$10,000 to $14,999 58,398 (4.6)
$15,000 to $19,999 55,375 (4.3)
$20,000 to $24,999 62,177 (4.9)
$25,000 to $29,999 59,279 (4.6)
$30,000 to $34,999 68,142 (5.3)
$35,000 to $39,999 63,545 (5.0)
$40,000 to $44,999 72,214 (5.6)
$45,000 to $49,999 59,463 (4.6)
$50,000 to $59,999 104,928 (8.2)
$60,000 to $74,999 143,022 (11.2)
$75,000 to $99,999 169,617 (13.2)
$100,000 to $124,999 111,260 (8.7)
$125,000 to $149,999 60,118 (4.7)
$150,000 to $199,999 61,415 (4.8 )
$200,000 or more 47,871 (3.7)
The Census' American Community Survey, 2005
In case you are interested in who can really afford Jumbos....
Seattle-Tacoma-Bellevue, WA Metro Area
Estimate Margin of Error
Total: 1,280,591 (100.0)
Less than $10,000 83,767 (6.5)
$10,000 to $14,999 58,398 (4.6)
$15,000 to $19,999 55,375 (4.3)
$20,000 to $24,999 62,177 (4.9)
$25,000 to $29,999 59,279 (4.6)
$30,000 to $34,999 68,142 (5.3)
$35,000 to $39,999 63,545 (5.0)
$40,000 to $44,999 72,214 (5.6)
$45,000 to $49,999 59,463 (4.6)
$50,000 to $59,999 104,928 (8.2)
$60,000 to $74,999 143,022 (11.2)
$75,000 to $99,999 169,617 (13.2)
$100,000 to $124,999 111,260 (8.7)
$125,000 to $149,999 60,118 (4.7)
$150,000 to $199,999 61,415 (4.8 )
$200,000 or more 47,871 (3.7)
Comments
It seems like just yesterday that families earning $150K/yr were doing pretty good. Now that's no longer middle class, unless you rent. (But really, can you consider yourself "middle class" if you don't own a median priced home?)
<hat1>
We know that Jumbo loans are for mortgages exceeding $417,000. If we divide that by 6 (old realtor rule of thumb that your mortgage should not exceed 6x yearly salary), you get a salary of $70,000 to afford a jumbo mortgage. This is a fact.
Assume that the $60,000-$75,000 range contains no earners making less than $70,000 and we see that (11.2 + 13.2 + 8.7 + 4.7 + 4.8 + 3.7 = 46.3) 46.3% of households in Seattle can safely afford the median jumbo loan at 8% or more.
</hat1>
<hat2>
We know that Jumbo loans are for mortgages exceeding $417,000. If we divide that by 3 (old realtor rule of thumb that your mortgage should not exceed 3x yearly salary), you get a salary of $139,000 to afford a jumbo mortgage. This is a fact.
From the chart you can clearly see that (4.8 + 3.7 = 8.5) less than 10% of all households in Seattle have an income exceeding $139,000 a year. Clearly we need not worry about Jumbo loans affecting Seattle because almost no buyers are using them anyways.
</hat2>
<hat3>
We know that Jumbo loans are for mortgages exceeding $417,000. If we divide that by 4 (old realtor rule of thumb that your mortgage should not exceed 4x yearly salary), you get a salary of $104,000 to afford a jumbo mortgage. This is a fact.
None of this matters because I have personally hired a pink pony to flip "CONDO -->" signs in front of every house/condo I am selling.
</hat3>
Here's Seattle proper:
Total: 261,433 (100)
Less than $10,000 24,932 (9.5)
$10,000 to $14,999 15,525 (5.9)
$15,000 to $19,999 13,380 (5.1)
$20,000 to $24,999 14,141 (5.4)
$25,000 to $29,999 11,483 (4.4)
$30,000 to $34,999 14,641 (5.6)
$35,000 to $39,999 12,958 (5.0)
$40,000 to $44,999 13,628 (5.2)
$45,000 to $49,999 11,475 (4.4)
$50,000 to $59,999 20,236 (7.7)
$60,000 to $74,999 24,268 (9.3)
$75,000 to $99,999 27,491 (10.5)
$100,000 to $124,999 20,478 (7.8 )
$125,000 to $149,999 10,332 (4.0)
$150,000 to $199,999 14,191 (5.4)
$200,000 or more 12,274 (4.7)
Slightly higher-end distro, but not hugely so.
Total: 48,998 (100)
Less than $10,000 2,212 (4.5)
$10,000 to $14,999 1,233 (2.5)
$15,000 to $19,999 1,465 (3.0)
$20,000 to $24,999 1,903 (3.9)
$25,000 to $29,999 2,347 (4.8 )
$30,000 to $34,999 1,830 (3.7)
$35,000 to $39,999 1,617 (3.3)
$40,000 to $44,999 2,170 (4.4)
$45,000 to $49,999 2,117 (4.3)
$50,000 to $59,999 3,870 (7.9)
$60,000 to $74,999 6,413 (13.1)
$75,000 to $99,999 6,528 (13.3)
$100,000 to $124,999 4,922 (10.0)
$125,000 to $149,999 2,575 (5.3)
$150,000 to $199,999 3,458 (7.1)
$200,000 or more 4,338 (8.9)
Households (%) (cumulative %)
Owner occupied: 801,479 (100.0)
Less than $5,000 9,383 (1.2) (1.2)
$5,000 to $9,999 9,805 (1.2) (2.4)
$10,000 to $14,999 17,526 (2.2) (4.6)
$15,000 to $19,999 20,160 (2.5) (7.1)
$20,000 to $24,999 23,511 (2.9) (10.0)
$25,000 to $34,999 59,351 (7.4) (17.4)
$35,000 to $49,999 107,862 (13.5) (30.9)
$50,000 to $74,999 166,006 (20.7) (51.6)
$75,000 to $99,999 137,323 (17.1) (68.7)
$100,000 to $149,999 150,583 (18.8) (87.5)
$150,000 or more 99,969 (12.5) (100.0)
Renter occupied: 479,112 (100.0)
Less than $5,000 26,924 (5.6) (5.6)
$5,000 to $9,999 37,655 (7.9) (13.5)
$10,000 to $14,999 40,872 (8.5) (22.0)
$15,000 to $19,999 35,215 (7.4) (29.4)
$20,000 to $24,999 38,666 (8.1) (37.4)
$25,000 to $34,999 68,070 (14.2) (51.6)
$35,000 to $49,999 87,360 (18.2) (69.9)
$50,000 to $74,999 81,944 (17.1) (87.0)
$75,000 to $99,999 32,294 (6.7) (93.7)
$100,000 to $149,999 20,795 (4.3) (98.1)
$150,000 or more 9,317 (1.9) (100.0)