Maybe it’s my interest in economics, but American life is so expensive in part because Americans are willing to spend a shit ton of money because they think they’re supposed to. It’s like we’re all enamored with the idea that bigger and more is better just because someone said so. And then we complain about things being unaffordable like corporations aren’t trying to fleece us for all we’re worth.
I’ve heard it said that Americans purchase based on the maximal use case as opposed to the typical use case. As an American, that description makes so much sense. As an example, I live in an area where there are a lot of hills and it snows rarely, but just about everyone who can afford a 4WD SUV has one. Heaven forbid they can’t drive around on those 1-2 days a year that it snows! Meanwhile, they get shitty gas mileage driving to work the other 300-odd days of the year.
The maximal use case! That’s a good way of thinking about it!
I’m struggling with my SO to buy a reasonable house in a high cost of living area. They want a massive 2000 Sq ft monstrosity because we plan to have a kid soon, and I’m thinking 1500 is more than enough. They’re reasoning it’s we need space for each other and entertaining. My reasoning is I want to eat out at the nearby fantastic restaurants nearby more often and buy cheese and wine and stuff.
I had to use a unit converter, but I’ve lived in places housing up to seven people that weren’t that big. Comfortably.
This is a conversation I had here recently as well when I pointed out to a car thread that for the money Americans pay for pickup trucks you can also buy a hatchback and a proper van, cover most use cases and not drive a tank to take kids to school. They did NOT like that.
The more walkable the location of the house, the less space you need because that space is outside your house.
We have two kids in a 3 bed/2 bath 1350 sq ft home. We do have a full basement, but the kids aren’t really allowed down there (power tools, toy stash, etc). I guess I do hang out there some nights, but that’s only because my gaming computer moved downstairs years ago when our oldest started to be able to reach the keyboard and pull key caps off it.
In our experience, you’re probably not going to do a lot of entertaining while you have young kids. While one of your kids is under 3-4, and sometimes older, they’re going to need naps. They’re also going to have early bedtimes. Naps are mostly behind us, and we do have afternoon play dates, but the kids don’t really care what space they’re in as long as they’re engaged and have things to do. Having an adult gathering is… very rare. We have a nice sized yard, so we tend to have gatherings outside.
I don’t think we need extra bedrooms or bigger bedrooms/bathrooms. An office might be nice, but working from the basement works just as well. A toy room could be nice, but to me it would be wasted space as the kids get older and have fewer, but larger/more engaging, toys. At least around here, the extra room comes with extra walls that result in a space that’s not often used (think a formal dining room).
There’s also the financial side of things. We could afford a larger house, but would rather be putting any extra into 529s, our own 401ks, etc. Kid related expenses really add up before you start also thinking about a bigger mortgage payment.
Ok. We raised 4 kids in an 1800 sq foot house with one bathroom. I do not recommend the one bathroom, but the space was more than adequate.
Having said that, it does make a difference, we have the same size house now and only 2 kids left at home, but this house has a bigger main kitchen/dining area, smaller bedrooms, a separate living room for the kids, an enormous back porch/deck adding to the useable space and entertaining space is really helpful more than I had imagined.
1500 arranged right with small bedrooms and enough common area, and at least 2 bathrooms sure. It’s not a small house, that’s a medium size house. With an enormous porch? Hell yeah. We used to live in one of those with two other couples, it was fine. But I do think you are undercounting the value of common space.
On cars I agree wholeheartedly. It’s way too expensive to maintain that capacity. We rent a minivan to travel but buy small car for daily use.
House I am not convinced, the value proposition is different. It really is nice to have a little extra space. Not some monstrous McMansion, but not cozy, and space for the kids to have their gaming computer stuff not inside their bedroom and my home office stuff not inside my bedroom. And moving is a pain in the ass and expensive, absolutely don’t want to have to scale up if the family gets bigger.
It’s the issue of “but sometimes”. People want to use a worse solution because the better solution has an issue that happens only rarely.
I’m always blown away seeing these blue collar guys driving around these $50-80k trucks that probably get 8 mpg. How do they afford this?
Loan on a $50k vehicle is $1000-$1500/month depending on loan term. It’s likely $80 minimum every time you refuel too.
Also some of them are paid very well. Any of your unionized specialty trades can easily make $150k+ a year, especially if they’re willing to travel or work a lot of OT. If you’re single or married with no kids, you can pretty easily afford a big fancy truck like that.
If you’re willing to travel that can be more than $50k a year in per diem pay, so in two years you can easily pay off a new trailer to live in and a nice truck to haul it with. I personally know people who have done exactly this. The catch is that you need to get into a good union and do your apprenticeship and generally have your shit together. It always surprises me that more people don’t know this.
Yes, I’ve been trying to get the idea across to people to spend less instead of making more.
They just don’t get it, and I think that’s by design.
These problems won’t get solved until our culture changes. It won’t change until enough people feel disenfranchised.
In other words, it’ll get worse before it gets better. Blame every poor person who believes the disparity in wealth should grow instead of shrink.
Can’t have the poors driving - they should be working! cf. Drive to eliminate internal combustion driven vehicles and replace with EVs as well.
Don’t worry! Well make them all return to the office so that 90% of them are forced to commute via car. That means they’ll have to buy one even if they can’t afford it! It’s genius and there’s definitely no other way this can be done because otherwise they will miss out on all that important in-office interaction bullshit!
It blows my mind how many people are paying nearly my rent on their car payment. We’ve already normalized having 48+ month financing on cars people would never even think about buying because it’s 2 years salary instead of a 2 months. But you can pay $800 every month, right?
Better not lose the job you need the car for that you need to pay for the car payment because miss a few and all those payments go bye-bye, it’s repo time! Then good luck getting a job, if you can’t pay your car payment, you won’t even be able to afford a clapped out 94 civic with 200k for $5k. Maybe if you just move out for a few months you can save up enough to get that car. Just a few months on friends couches or in motels, then it will be okay. Then you’ll get back on your feet.
How do they even do it? I know for a fact that a lot of them are not especially wealthy.
I like how the article mentions: The preferred solution of many planners – replace car trips with transit – faces difficult odds in this country. Yet the last paragraph discusses s proposed solution being provide money to help lower income people buy and maintain cars.
Stop buying SUVs and expensive cars!
How else will I feel superiority to others just because I spend more money than them?
the average used car lists at more than $26,000
Craig’s list is your friend. Giant pile of cars there for four digits.
ones that run are in the high four digits, and the days of a sub $1000 running beater are over
I’m hanging on to my sub $1000 beater. Late 90s Civic with 240k miles and no clear coat still has better mpg than our newish CRV.
20 years ago I bought a civic for $1200 from Craigslist. Sold it 10 years ago for $1600. They’re great cars.
