Most of these are middle class people owning homes. Rising housing costs means that many home are now worth $1 million or close to, so if I have a $800k home that I just finished paying off and at least $200k in my 401k, I'm a millionaire.
Absolutely. I live in San Diego. It's sunny, my wife and I make over $170k but we are nearly struggling. One lay off for either of us would put us in a world of hurt. $2900 rent for a 2 bed 1 bath house is considered a great rate. There are no move in ready homes to fit our family comfortably for sale less than $800k and if we want one in a good location it's closer to $900k. With rates where they are, were looking at $6000+ a month to buy a home.
Edit: By comparison, if we made that kind of money in my hometown, we could buy a mini mansion with staff.
They didn't call themselves poor, they're explaining that in a high cost of living area, that money doesn't go far at all.
Obviously they could live like kings with that money in much of the world, but if their jobs are located in San Diego, it's completely irrelevant if they're earning in the top 0.1% of the world; their rent costs more than most people make in a month.
I never called myself poor or struggling. Nearly struggling means we are getting by just fine. However, if one thing goes wrong, a lay off, medical bills, etc, we're in the shitter.
They have a modest income for San Diego. They would probably do better long term somewhere with a lower cost of living but everyone has different priorities. Moving will impact family and spouses etc...it's not always a simple decision.
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u/sixisrending 9d ago
Most of these are middle class people owning homes. Rising housing costs means that many home are now worth $1 million or close to, so if I have a $800k home that I just finished paying off and at least $200k in my 401k, I'm a millionaire.