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How my perception of low income buyers has changed

By
Real Estate Broker/Owner with Shepherd Real Properties

A few months ago, I went on a Realtor affordable homes bus tour and they took us to a neighborhood that had average prices in the 180s.  Gasping to myself, I said, “Since when is this low income?”   My perception of low income families were minimum wage workers and there was no way they would be able to afford that price!

Just this month, I discovered that there was a “low income” project going on in Charlotte where the average price was $150,000.  Again, to me, even that was too high for low income earners.  However, as it turns out, minimum wages workers are actually living below the poverty line.  Low income is living 20% below the medium income. 

Medium wage is actually a family making about a $100,000.  High income is so far off the scale, it can’t be measured.   1% of the world’s population is holding 90% of the world’s wealth, however over 20% of people in America are living below the poverty line and work 40 hours a week.

         The 2012 census bureau set the poverty line at $23,050 (total yearly income) for a family of four.  That’s over $11. Per hour, however, the federal minimum wage is $7.25 an hour. 

 

Some politicians and small business owners don’t want to raise the minimum wage because it will have a snowball effect and prices would have to raise to compensate the increase, causing the increase to be of non-affect.  Well, I don’t know.  I just know that something has to happen.  Whether they ever buy a house or not, I’m for raising the minimum wage.  All in all, my perception has changed and now I know that low income housing is not for the really low income families at all.

~Elizabeth

Posted by

Elizaabeth Ann Mosley, BIC

Shepherd Real Properties

 

Stacey Williams
Alpharetta, GA
Experienced Metro Atlanta Real Estate Agent

Elizabeth great blog that incorporates how income and housing costs are related. What stood out to me in your article was what is considered poverty level, low income, medium income and of course wealthy.

May 20, 2014 04:21 AM
Elizabeth Mosley
Shepherd Real Properties - Charlotte, NC
BIC - Shepherd Real Properties

Hi Stacey,

Thanks for reading and commenting on this post.  Your points are the main reason I wrote it.  There are so many people living below the proverty level and most were victims of the housing crash and predatory lending.

Jul 09, 2014 08:43 PM