After I saw a pretty sobering presentation last week about housing in D.C., including this graph, which shows the inflation-adjusted median rent in the district, I crunched the numbers, but the result wasn’t especially encouraging.
Consider a hypothetical young couple. They both have modest careers and earn $100,000 a year, combined. Using the traditional 30 percent metric, they can afford to pay up to $2,500 on rent and utilities per month. It also means they could afford monthly mortgage payments for a house that costs roughly $350,000 (the exact price depends on the interest rate and other factors). Now, that amount of money won’t buy this couple a rowhouse in Dupont Circle, but it might get them a decent condo or house in an up-and-coming part of the city.
[Continue reading Rob Pitingolo’s post at Extraordinary Observations.]
Rob Pitingolo blogs at Extraordinary Observations. The Local Blog Network is a group of bloggers from around the D.C. region who have agreed to make regular contributions to All Opinions Are Local.