[quote author="Adam Ginsberg" date=1243047819][quote author="MalibuRenter" date=1242982742]Having a $100k a year job here is enough to raise a family in a decent neighborhood. There are a ton of two income families who are only a few years out of college that have an easy time affording a good house. I can dig out the calculation, but there is an academic paper which calculated how many more years someone buying a median price home in LA had to work vs Dallas in order to afford the house price difference.</blockquote>
You are spot on. When we bought our second home in TX (sold house #1, rolled equity into house #2), our 2 little ones were still very young - 3 and 6 (the oldest was 15 or so). Within a year, we paid off some additional debt, and my wife quit her well paying job to be a stay at home mom (not an easy job.....I've done it myself). We couldn't do the types of things we did with a dual income, but the time spent with our kids simply cannot be understated.
Given the cost of living in CA at the time we were a single income family in TX (~1996-2002), we would not have been able to do it.
<blockquote>I also did an interesting calculation, "How many children does the house cost?" The concept is simple. Compare the cost of raising a child to buying a home. If you can have a similar job in a city where homes are less expensive, it's easier to afford 2 kids instead of 1, etc. I calculated that I was able to afford two more children just by not purchasing in California near the peak.</blockquote>
That's a very unique perspective. Not one we ever thought of when deciding to have children. I will say that if we'd stayed in CA during the crash of the early 90's, we likely would not have had our 3rd.
Trust me.....it's never easy to afford kids. And, no matter how old they get, you never stop paying for 'em.
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I look at being able to afford kids as both involving money and time/attention. Places like Los Angeles tend to leave you with less time and less disposable income. In the early 1990's, home prices went down and traffic got lighter. The quality of life improved for those who weren't already homeowners, and who still had decent jobs. I went from straight out of school at a sucky job in 1989 to 2.5x the pay in 1993, as home prices were dropping.