Australian here. That's cute.
:'(
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It's kind of awesome that this article is just a summary of a tiktok video
People aren't likely to buy a typical middle class home as their first house, they'll usually start in a starter home/townhouse and then upgrade as their family gets bigger. By that point, their house will have appreciated and they'll have built some equity, meaning they can afford a larger house than if they had been renting.
So while the math may be correct given the inputs, I think the inputs don't make sense for most people.
It's probably okay to stretch a bit (say, 40-50% of income) on the first home, since income will likely increase and the payments will stay mostly flat. Just don't expect to buy a new house, new car, and new furniture all within the first 5-ish years.
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Welcome to the world that neoliberalism built.
Do a search for homes in your area that are between 50 and 75 yrs old. These are the houses of the American dream. They are small and they are cheap. When I look in my town I see dozens that can be bought for less than 100k. We’ve got housing affordability problems to be sure. But also, a person in the 1960s living on a factory wage would have looked at a modern 3k sq ft “middle class” home and thought that the richest guy in town must live there.
Sure my grandfather raised 5 kids on a GM salary, but he did it in a 900 sq foot 3 bedroom, 1.5 bath house. His house is still standing, Zillow says I could expect to pay 115k for it. The average GM line worker today would turn his nose up at it.
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