The Most Expensive Towns in the US — and What it Costs to Live There

Here’s how much you need to make to live in the top 10 priciest ZIP codes

luxury home

Everyone knows that living in Beverly Hills, California, or Greenwich, Connecticut, doesn’t come cheap. But how much, exactly, does it take to live there? A recent report by personal finance site GOBankingRates spells it out, naming the most expensive ZIP codes in each state and determining what it costs to comfortably live there.

Considering the cost of an average mortgage in the area, plus healthcare costs and daily living expenses like groceries, utilities and transportation, the report estimates the annual income required to live in each town – and the results are staggering.

The estimates are based on the “50-30-20 rule,” which dictates that 50% of a person’s income will be spent on necessities, 30% will be left for discretionary spending and the remaining 20% will be reserved for savings.

Based on these factors, here are the top 10 most expensive cities and the annual salary required to live there.

  1. Sagaponack, New York: $853,738

Located near the eastern tip of Long Island in the town of Southampton, Sagaponack is the perfect weekend getaway for New York City’s wealthy elite. The median home price was $5.5 million in 2016 and $2.8 million in 2017, according to Property Shark, making it one the most expensive places to live in the U.S.

  1. Beverly Hills, California: $692,388

Everyone knows that life in 90210 comes with a hefty price tag. With constant sunshine and close proximity to the Hollywood scene, Beverly Hills ranks No. 2 for the most expensive place to live.

  1. Alpine, New Jersey: $499,244

This private little enclave with less than 3,000 residents is located across the Hudson River and is just nine miles outside of Manhattan, making it a convenient place to quietly nest for celebs and business titans alike.

  1. Fisher Island, Florida: $452,630

Located three miles south of Miami Beach, the ultra-exclusive Fisher Island is home to just 700 families with homes nestled between the shore and a golf course.

  1. Aspen, Colorado: $380,590

Situated at the heart of the White River National Forrest and featuring breathtaking mountain views, the median home value for this popular vacation destination is $1.4 million.

  1. Sea Island, Georgia: $354,366

This five-mile island off the coast of Georgia has just 400 full-time residents and was a playground for the uber wealthy in the 1920s. Its massive oak trees and five-star hotels continue to attract the vacationing elite.

  1. Greenwich, Connecticut: $343,126

Situated on the border of Connecticut and New York, Greenwich is an ideal destination for the high-flying businessman. In fact, it’s home to 12 of the world’s richest billionaires.

  1. Nantucket, Massachusetts: $331,558

Located 30 miles off the coast of Cape Cod, Nantucket has long been a popular summer destination for wealthy vacationers. With its striking water views and seaside charm, Nantucket boasts a median home price of $1.85 million.

  1. Sullivan’s Island, South Carolina: $296,354

A suburb of Charleston located just east of the city, this 2.4 square mile-island is known for its pristine beaches and impressive coastal mansions.

  1. Honolulu, Hawaii: $288,004

Honolulu wins the prize for the highest cost of living, as most daily necessities are two-thirds more expensive on the island than the rest of the country, making life on the island quite pricey.

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More Young Families Opt to Rent instead of Buy

Homeownership for families with young kids drops 14%

House for rent 1

More young families chose to rent instead of buy in the 10-year span from 2006-2016, according to a study by RENTCafé.

Likely influenced by rising home prices, tough lending rules and a lack of entry-level homes, the number of families with minor children that owned a home decreased by 3.6 million during this time, while rentals for this group increased by 1.9 million.

Using data from the U.S. Census Bureau, RENTCafé noted that during this 10-year period, the number of families with children living in rentals increased by 16%, while homeownership rates for the same demographic fell 14%.

The study states that this trend is apparent nationwide.

“The rise of renting and the decline of ownership among families with children is not only confirmed in all 30 largest U.S. metropolitan areas, but it’s also very prominent in many of them,” RENTCafé wrote. “At the confluence of forces that prevent families from buying homes and compel them to rent, the cost of housing is probably the strongest force.”

The report states that the national median price of a single-family home has increased 35% in the past five years, increasing at a rate that is 75% greater than rents.

Southern cities saw the highest increase in families that were living in rentals, according to the report, with Atlanta, Phoenix, Houston, Miami and Charlotte, North Carolina topping the list.

The greater Charlotte area experienced the most significant jump with a 73% increase in families with kids who were renting their home. The Atlanta area came in second with a 51% jump in the number of renting families.

The metro areas that lost the most homeowner families were Detroit, Miami, Las Vegas, Los Angeles and Riverside, California, which all registered decreases of more than 20%, according to the report.

“These statistics show the tremendous effects of this relatively short but eventful period of time on American families,” the report stated. “These 3.6 million fewer owner households are families who lost their homes in foreclosures or otherwise, they are young families who are unable to overcome the current financial barriers to become homeowners, and they are also homeowners whose children grew up and no longer fall into this category.

Source: RENTCafé
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Is a “Generational Housing Bubble” Taking Shape?

DSNews.com, July 17th, 2018

housing bubbleBaby boomers have long accounted for a significant portion of the housing market, so how will the market be impacted by the aging of this large generation? Are we heading toward a “generational housing bubble?”

Fannie Mae’s Economic and Strategic Research Group teamed up with the University of Southern California to answer this question in a new Housing Insights report, titled, “The Coming Exodus of Older Homeowners.”

Currently, baby boomers, those born between 1946 and 1964, live in 46 million owner-occupied homes with a total combined value of $13.5 trillion, according to the research.

As baby boomers enter their 70s, the report said, “we can expect many to leave the housing market for rentals, senior care facilities, or even death.”

“With the oldest boomers now in their early 70s, the beginning of a mass homeownership exodus looms on the horizon, fueling fears of a ‘generational housing bubble’ in which homeownership demand from the younger generations is insufficient to fill the void left by multitudes of departing older owners,” stated Dowell Myers of the University of Southern California and Patrick Simmons of Fannie Mae in their report that was published on the Fannie Mae blog.

Examining historical and recent homeownership trends among older Americans, the researchers sought to predict how many older homeowners would leave the market over the next two decades.

Between 2006 and 2016, 9.2 million Americans who reached age 65 or older during the decade transitioned out of homeownership, the report indicated. Over the next 10 years, from 2016 to 2026, the researchers anticipate another 10.5 million to 11.9 million homeowners exiting their homes. Over the following decade, between 13.1 million and 14.6 million older Americans will exit the housing market.

“The number of older homeowners ‘at risk’ of attrition due to advancing age will balloon as the large baby boomer generation moves full-force into the 65-and-older age group where homeowner retention rates drop substantially,” Myers and Simmons explained.

The researchers pointed out some possible ways to “ease the market impacts of the coming wave of older homeowner departures,” such as offering home improvement financing and social services for those who wish to age in their homes instead of moving.

Another way to ease the impact is by helping the millennial generation to replace some of the boomers as they exit the market by ensuring “sustainable” financing options for first-time buyers.

The report pointed out that “immigration policy will also likely play a role in determining the adequacy of replacement demand for the homes vacated by boomers” because “immigrants contribute substantially to homeownership demand.”

“Fostering a smooth intergenerational handoff of housing assets will likely require approaches that span the age spectrum and that seek to forge a bond of mutual housing market interests between old and young,” Myers and Simmons said.

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Closet Organizing Tips Everyone Should Know

Closet Organizing Tips Everyone Should Know https://www.realsimple.com/home-organizing/organizing/genevieve-gorder-organizing-tips?utm_source=twitter.com&utm_medium=social&utm_campaign=social-button-sharing via @RealSimple#Closet

http://www.realsimple.com, July 17th, 2018

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Are you Wondering if you can Buy your First Home?

KCM Crew, July 16th, 2018

Are You Wondering If You Can Buy Your First Home? | MyKCMThere are many people sitting on the sidelines trying to decide if they should purchase a home or sign a rental lease. Some might wonder if it makes sense to purchase a house before they get married or start a family, some might think they are too young, and still, some others might think their current incomes would never enable them to qualify for a mortgage.

We want to share what the typical first-time homebuyer actually looks like based on the National Association of Realtors’ most recent Profile of Home Buyers & Sellers. Here are some interesting revelations on the first-time buyer:

Are You Wondering If You Can Buy Your First Home? | MyKCM

Bottom Line

You may not be much different than many people who have already purchased their first homes. Let’s meet to determine if your dream home is within your grasp today.

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Americans’ Confidence in Housing Reading a Plateau

But there’s still optimism about direction of economy

houses neighborhood

Americans are growing less confident in housing, and experts wonder if, after years of climbing, their confidence is hitting a plateau.

Fannie Mae’s Home Purchase Sentiment Index dropped 1.6 points in June to 90.7, just after reaching new survey highs in both April and May.

“After several years of steadily climbing, HPSI’s slowing upward trend suggests the index may be reaching a plateau,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Tight supply and lackluster income growth continue to weigh on housing activity, and consumer expectations for home price growth over the next 12 months have moderated.”

Four of the six HPSI components decreased in June, but the net share of respondents who said now is a good time to buy a home remained unchanged at 28%, and those who said now is a good time to sell a home increased one percentage point to 47%. This represents a new survey high for the third straight month.

The four components that decreased included Americans expressing a decreased sense of job security. Those who said they are not concerned about losing their job fell two percentage points in June to 76%, while the share reporting their income is significantly higher than it was 12 months ago decreased two percentage points to 19%.

The share of Americans who answered that mortgage rates will go down over the next 12 months dropped four percentage points to -53%, and the net share who said home prices will go up over the next 12 months decreased three percentage points to 46%.

But despite this decrease in confidence, Fannie Mae pointed out many Americans are still confident in the current direction of the economy.

“Consumers expressed increased optimism about the direction of the economy and their personal financial situations over the next 12 months, with both measures matching previous survey highs this month,” Duncan said.

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All the Actually Good Amazon Prime Day Deals You Can Get Right Now

All the Actually Good Amazon Prime Day Deals You Can Get Right Now (Updating) @Thrillist https://www.thrillist.com/news/nation/best-amazon-prime-day-deals-2018?utm_content=All+the+Actually+Good+Amazon+Prime+Day+Deals+You+Can+Get+Right+Now+%28Updating%29&utm_source=twitter&utm_medium=social-media&ref=twitter-869

http://www.thrillist.com, July 16th, 2018

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