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Visualizing Why Everyone Should Move From Detroit To Seattle

Tyler Durden's picture





 

Between stagnating incomes and centrally-planned spillovers into housing and transportation costs, workers in this country are increasingly pressured to move to more 'all-in affordable' areas (if they can). As a recent study by the Center for Housing Policy shows, the housing and transportation cost burdens of moderate income households living in the 25 largest metro areas problem is getting worse; moderate-income households pay a disproportionate share; Moderate-income homeowners carry heavier cost burdens than renters; and the combined burden of housing and transportation costs is greatest where costs are out of sync with local incomes - not always the places with the highest absolute costs. Of course QE is designed to 'help' homeowners... and yet the middle-class continues to be squeezed.

Via The Center for Housing Policy:

The problem is getting worse. Housing and transportation costs rose faster than income during the 2000s, increasing the burden that these costs placed on already stretched budgets. This held true for each of the 25 largest metropolitan areas, though the disparity was greater in some areas than others. For all households, including homeowners who have paid off their mortgage, housing and transportation together consumed an average of 48 percent of the median household’s income by decade’s end.

 

Moderate-income households pay a disproportionate share. For households earning 50 to 100 percent of the median income of their metropolitan area, nearly three-fifths (59 percent) of income goes to housing and transportation costs. For these households, the growing costs of place1 are particularly burdensome, leaving relatively little left over for expenses such as food, education, and health care, not to mention savings.

 

The combined burden of housing and transportation costs is greatest where costs are out of sync with local incomes; these are not always the places with the highest absolute costs. In some metro areas, such as Washington, DC, Boston, and San Francisco, high costs are matched by relatively high incomes, helping moderateincome households better afford their housing and transportation costs. But other regions, such as Riverside-San Bernardino, CA, Miami, and Los Angeles, have moderate or even high housing and transportation costs in spite of relatively low median incomes. In these metro areas, combined cost burdens for moderate-income households are very high, with average burdens ranging from 65 to 72 percent of household income.

 

Transportation costs still shape differences in the overall affordability of metro areas. Six years later, it remains as important as ever to consider transportation costs along with housing prices in measuring overall affordability. The inclusion of transportation costs affects the relative affordability of many metro areas. For example, housing costs in the Houston region are comparatively affordable as a share of income, ranking eighth out of the 25 regions examined. When transportation costs are included, however, Houston drops into 17th place, as one of the less affordable regions for the combined costs of housing and transportation. In contrast, metro areas such as San Francisco, Boston, and New York are some of the least affordable regions for local moderate-income households when just housing is considered, but are among the most affordable when housing and transportation costs are considered together.

 

Moderate-income homeowners carry heavier cost burdens than renters. For the typical moderate-income renter, housing and transportation costs consume an average of 55 percent of income. Moderate-income homeowners carrying a mortgage face average costs of nearly 72 percent of income.

 

Cost burdens for moderate-income households vary substantially within metro areas. Even in metro areas where average cost burdens are relatively affordable, there are many neighborhoods that are out of reach for moderate-income households. In the Philadelphia region, for example, moderate-income households are faced with average housing and transportation costs exceeding 90 percent of their income in some neighborhoods.

 

Despite lower burdens than homeowners, moderate-income renters are still barely making ends meet in many metro areas. In the Los Angeles metro area, where average housing and transportation costs consume 61 percent of income for moderate-income renters, a typical renter household would not have enough left over at the end of the month to pay for food, health care, and other basic necessities. This would suggest these households are either cutting corners on essentials, or accruing debt.

And here is why people should move from Detroit and Atlanta to Pittsburgh and Seattle (click image for larger - eligible - version) as the ratio of growth-in-costs to growth-in-income for the median-income household is 4.54 in Detroit versus a 1.16 ratio in Seattle:

 

 

Full presentation:

LosingGround_10_2012

 


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Thu, 10/18/2012 - 21:36 | Link to Comment The Gooch
The Gooch's picture

8 mile fallout.

Thu, 10/18/2012 - 23:59 | Link to Comment CrazyCooter
CrazyCooter's picture

Not sure anyone cares, but a few years ago I bought a house in an urban area at the peak. I mean THE peak (Sep 2007). Fucking ex wife. Still costing me money. However, I insisted on 1 to 1.25 annual income as the cap. Further, as an engineer, I bought a brick shit house. I probably sank 10% of the total price in core repairs/improvements. The place is now Cadillac in terms of lifestyle.

The property is less than seven miles from down town (i.e. the high rise towers of the city center) and on a bus route. It is also close to very affluent areas, just on the other side but still blue collar.

My rationale at the time was; I can afford it and I can afford the energy to get to work.

After a divorce, eviction of the ex wife, and placement of new tenants, and after a serious consideration of the specter of foreclosure, I put my chips on my instinct. I put the cash in required to keep it.

Why? The suburbs will collapse due to energy costs.

Think I am crazy? I live in AK and I am about 1.5 miles from my job. Working for a 100% renewable energy producer. With a bus option to get to work (if I don't get pissed and decide to walk).

Suck it hippies. I eat lots of salmon and moose die next year. And you can't walk my walk, you just talk it.

Regards,

Cooter

P.S. The last time I shot off my mouth, I came in way south on a responder. Sorry about that. I don't keep score, but I took a licking on that. Pony up for your chips because I am online a while. Ooops!

Fri, 10/19/2012 - 01:56 | Link to Comment SilverRhino
SilverRhino's picture

Fuck, they have high rises in Alaska?    

Fri, 10/19/2012 - 02:45 | Link to Comment CrazyCooter
CrazyCooter's picture

I moved to AK because, per my read of the tea leaves, it was time to get the hell out of dodge. While I am 12 months behind my schedule, I hope to hunt/fish instate in the next 12 and stock the shit out of my freezer. Rice is damn cheap to pile up. So, I am good to go.

I am VERY happy here and hope to stick around many years. I have a list of gripes, but it isn't a relavent issue.

The fact that my place in TX is still (sorta) above water is an expression of my values during the bubble. If Ben wins, I come out ahead in nominal terms. If Ben loses, I have very little down side just based on math.

I bought a good house, with good location, at a low price, put some cash in to fix the short list of issues, and now I got something that will at least break even. Well, other than my pile of old coins.

Regards,

Cooter

P.S. To be fair, I have (and continue) to work fast food to float the boat during the "sqeeze". I have had this sort of work ethic my whole life, from fixing everything on my VW beetle in college to now where I make burgers at McDs to fix the math. I have had professional employment as an egineer the whole time ... it just wasn't enough. But you know what ... it was "transitory" ... and now I am about ready to quit and start on an employer footed degree in accounting. And the pay is a lot better. And I am caught up now.

Work ethic bitchez.

Thu, 10/18/2012 - 21:39 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

Breaking News-The cities of Detroit and Pittsburgh have agreed to a merger.  The new city shall be known as DePitts.

Fri, 10/19/2012 - 01:22 | Link to Comment eatthebanksters
eatthebanksters's picture

I would love to see everyone from Detroit move to Seattle...it would be a marked improvement to both cities...

Fri, 10/19/2012 - 02:49 | Link to Comment CrazyCooter
CrazyCooter's picture

The problem with detroit (and has been all along) is demographics.

But, that is the problem with the west.

Pay heed, listen, and observe.

Regards,

Cooter

Fri, 10/19/2012 - 04:27 | Link to Comment ZaphodBeeblebrox
ZaphodBeeblebrox's picture

Care to elaborate on Detroit's problem being the demographics? Electronic communication sometimes leaves to much between the lines to be read wrong. Thx -R

Thu, 10/18/2012 - 21:45 | Link to Comment Pbn2Au
Pbn2Au's picture

Looks like three borders of advertisements are not enough. Monetization has now unfortunately taken over pop ups. On the iPhone it is distressing. A sad day for Fight Club.

Thu, 10/18/2012 - 21:49 | Link to Comment Professordoomfinger
Professordoomfinger's picture

Chrome

Thu, 10/18/2012 - 21:49 | Link to Comment Orly
Orly's picture

Gosh, will everyone just get over it already.  Monetisation.  That's how it works.

What you think, you get it for free?

Fri, 10/19/2012 - 02:57 | Link to Comment CrazyCooter
CrazyCooter's picture

The "internet" is in many ways a "free lunch" culture, and as always it is a function of ignorance.

I like my free information, my free ideas, but I never expected it to be a free ride. After all, I get an amendment, but bets of luck trotting that shit out at a protest.

Every minute spent at a PC is "shit spewed into the air" at the local utility to generate power, infrastructure spent by the internet utility, and time invested by the content producers to say something people care about. In the middle of all that is Google helping you find it.

Monetization is precisely how this process continues. But, I think I reaffirm the comment.

Regards,

Cooter

Thu, 10/18/2012 - 21:45 | Link to Comment lolmao500
lolmao500's picture

Now just imagine when the interest rates rise... wouldn't surprise me if we see in the future headlines like : 1 million + homeowners kicked out of their homes in the last month.

Thu, 10/18/2012 - 21:46 | Link to Comment Professordoomfinger
Professordoomfinger's picture

Tigers

Ford

GM

OK, one out of three

Thu, 10/18/2012 - 21:48 | Link to Comment billsykes
billsykes's picture

Seattle? yuk. so depressing, too much rain and neckbeards. 

Thu, 10/18/2012 - 21:50 | Link to Comment Orly
Orly's picture

Guh-ross!  Prolly hair on their backs, too.

<shivers>

:/

Thu, 10/18/2012 - 22:33 | Link to Comment EvlTheCat
EvlTheCat's picture

"...neckbeards"

And that is just the women.  Depressing in itself!

Fri, 10/19/2012 - 00:20 | Link to Comment James-Morrison
James-Morrison's picture

That's the plan.
It keeps the riff-raff out.

Thu, 10/18/2012 - 21:49 | Link to Comment tony bonn
tony bonn's picture

"....Of course QE is designed to 'help' homeowners..."

horse crap! qe is designed to continue bankster bonuses, bail them out of their criminally incompetent business failures, and to rape and plunder amerika for the rockefeller axis of evil and the bush crime syndicate.....

Thu, 10/18/2012 - 21:53 | Link to Comment topspinslicer
topspinslicer's picture

I love the 7 mile - Hoover area -- it's to die for. Used to have nice courts at Harvey Barcus (Farwell) but they stole all the fencing that surrounds the 24 courts making it difficult to fetch stray balls

Thu, 10/18/2012 - 21:57 | Link to Comment The Gooch
The Gooch's picture

stray bullets

Thu, 10/18/2012 - 23:03 | Link to Comment fourchan
fourchan's picture

3 bedroom brick homes are 5-10k  here, this survey has its head up is ass.

Thu, 10/18/2012 - 23:42 | Link to Comment Terra-Firma
Terra-Firma's picture

Good links!

Thu, 10/18/2012 - 21:57 | Link to Comment toady
toady's picture

The talking heads on the local news were just trumpeting this as a 'good news' story. They said phoenix is an 'affordable' city, like Detroit!

Fri, 10/19/2012 - 01:38 | Link to Comment XitSam
XitSam's picture

Phoenix? It's ok. Excluding the housing market. Bad sheriff. Food prices going up. Everything's spread out, so it costs gas to get anywhere. Gotta be able to take the heat. I'll be moving north soon, fewer people, fewer problems.

Detroit? If everyone moves to Seattle, who will commit the crime?

Thu, 10/18/2012 - 22:02 | Link to Comment Dasa Slooofoot
Dasa Slooofoot's picture

I'd love if the *ahem* demographics of Detroit moved to these "keep _____ weird" cities on the Pacific Westcoast.  

 

The videos of skinny fat hipsters getting punked around on Worldstarhiphop.com videos would be so worth it. 

 

Give them their diversity.  Forward.  

Thu, 10/18/2012 - 22:32 | Link to Comment toady
toady's picture

Oakland is *ahem* demographically like Detroit. It was like a little piece of home in the bay area.

Thu, 10/18/2012 - 22:57 | Link to Comment headless blogger
headless blogger's picture

Typical East Coast Trash

Thu, 10/18/2012 - 22:01 | Link to Comment ifishivote
ifishivote's picture

It cost just over 10k a year for me and the wife to commute to work(LI to Manhattan). In March my subway fare is going up and my monthly LIRR pass is going up another 9%. This will be the 3rd increase in 7 years. My salary can not keep up. The service doesn't get any better!!! All of these increases go right to the unions.  NY will be toast in 10years. I can't wait to get the F out of here.

Thu, 10/18/2012 - 22:03 | Link to Comment Dasa Slooofoot
Dasa Slooofoot's picture

I do the LIRR commute, too.  Luckily I can walk from Penn Station to work, so that cuts out any subway fare for me.  

It's killer and a slap to the face when you find out how much money these "ticket please" conducters make.  

Fri, 10/19/2012 - 00:21 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Toll booth operators ... $120k a year.

Thu, 10/18/2012 - 22:02 | Link to Comment lolmao500
lolmao500's picture

Soon this will mean moving out of the US entirely.

Thu, 10/18/2012 - 22:09 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Yeah, I hear the Moon is lovely this time of year.

Fri, 10/19/2012 - 00:08 | Link to Comment BeaverFever
BeaverFever's picture

Welfare recepients won't go there. ObamaPhones don't work on the moon.

Thu, 10/18/2012 - 22:02 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

visualizing is great but if you're blind it sucks

as does being tased

http://news.sky.com/story/998967/blind-man-tasered-as-cops-mistake-stick...

Blind Man Tasered As Cops Mistake Stick For Sword
Thu, 10/18/2012 - 23:48 | Link to Comment FeralSerf
FeralSerf's picture

Useless eaters.

Thu, 10/18/2012 - 22:04 | Link to Comment ZeroAvatar
ZeroAvatar's picture

"............Why Everyone Should Move From Detroit to Seattle"......

 

NOW you've done it!    Now you've REALLY done it!

Thu, 10/18/2012 - 22:05 | Link to Comment Bay of Pigs
Bay of Pigs's picture

They should raze Detroit and move them all to ChiTown, not Seattle.

Let Barry O and his lil buddy Rahm figure it out.

Thu, 10/18/2012 - 22:12 | Link to Comment toady
toady's picture

Or they could raze chitown & move to detroit...

Not much difference either way ....

Fri, 10/19/2012 - 00:04 | Link to Comment FeralSerf
FeralSerf's picture

Wouldn't it be cheaper to move them to Windsor?

Fri, 10/19/2012 - 10:13 | Link to Comment Metalredneck
Metalredneck's picture

Winters are much harder once you cross the river. ;-)

Thu, 10/18/2012 - 22:12 | Link to Comment Spastica Rex
Spastica Rex's picture

I sold my 1,400 sqr ft 1927 Seattle home 10 years ago for almost half a million dollars. Seattle is retarded. I now live in a crumbling 1957 rambler in the desert of eastern Washington State. I'm retarded.

Thu, 10/18/2012 - 22:23 | Link to Comment toady
toady's picture

Sounds about right.

Thu, 10/18/2012 - 22:27 | Link to Comment fonzannoon
fonzannoon's picture

funny shit. I do the Tom Hanks Money Pit laugh everytime my wife points out something else the f'n house needs done.

Fri, 10/19/2012 - 11:20 | Link to Comment glenlloyd
glenlloyd's picture

I assuming here that when you say 1957 Rambler you mean a car....

Thu, 10/18/2012 - 22:34 | Link to Comment Cobb
Cobb's picture

This site officially sucks now because of the ads. If they don't fix it, then I know many of us will not return. Tyler, from what I've known of this site for years you're working to fix this. If not I guess I had too much trust in you guys.

Thu, 10/18/2012 - 22:36 | Link to Comment lolmao500
lolmao500's picture

Ads? What ads? I don't see anything.

/using firefox

Thu, 10/18/2012 - 22:45 | Link to Comment Nadaclue
Nadaclue's picture

Yes, yes

Move Detroit to Seattle, with my blessing. Seattle is a bunch of Socialist commies that think the rest of the state should support the poor, homeless, disenfranchised and every other variance of the social state. Good chance to show the moderate income fucks just what socialism is about.

ha-ha, I can only wish.

Fri, 10/19/2012 - 00:47 | Link to Comment Bear
Bear's picture

Use adblock ... I see nothing, sorry TD

Fri, 10/19/2012 - 01:17 | Link to Comment Essential Nexus
Essential Nexus's picture

What about you donate...

Thu, 10/18/2012 - 22:36 | Link to Comment headless blogger
headless blogger's picture

Just the Minimum wage alone in Seattle (and all of WA state) has gone up 40% since 2000. In January of 2013 it goes up again to $9.19 and hour. The highest in the country I think...So PLEASE Zero Hedge, DO NOT ENCOURAGE PEOPLE FROM DETROIT TO MOVE HERE.

I grew up on an island here. It was great, but now we have masses of Genetically Modified looking people roaming the streets...Women fat as doorways; Men who speak like hicks and missing teeth, and children who look more like Honey Boo Boo than Shirley Temple.

Most of that has happened with the current Governor Greigoire, who is ruining the state with socialism.

She is giving out free medical care to illegal immigrants, as well as drivers licenses to anyone who pays the fees.

Fri, 10/19/2012 - 09:36 | Link to Comment farmerjohn2112
farmerjohn2112's picture

Truth, every word... fled to the coast years ago and it was swell. Now, every weekend the population doubles, the smell of McDonald's grease fills the air and we just hunker down and wait it out.

Passing I502 will be a breath of fresh air, but I still can't have a lid in my closet and the fees for a first-year producer will be north of $1250.

Greigoire sucks.

Thu, 10/18/2012 - 22:47 | Link to Comment cyberseer
cyberseer's picture

nooooooo, don't tell them to come and ruin my city!

Thu, 10/18/2012 - 22:54 | Link to Comment hustler etiquette
hustler etiquette's picture

American Dream Nightmare.  Unions are the cartelling of the human resource.

Thu, 10/18/2012 - 23:07 | Link to Comment Talleyrand
Talleyrand's picture

If everyone in Detroit moved to Seattle, then Seattle would become like Detroit.

Fri, 10/19/2012 - 00:46 | Link to Comment Bear
Bear's picture

And, of course Detroit would become like Seattle ... Oh, except for the weather

Fri, 10/19/2012 - 11:13 | Link to Comment Stuck on Zero
Stuck on Zero's picture

Reminds me of an old saying: "There's no such thing as a ghetto.  There are only ghetto people."

 

Thu, 10/18/2012 - 23:22 | Link to Comment mirac
mirac's picture

Seattle is a dangerous city to live in.  That Cascadia Fault line is going to snap and the resulting tsunami will kill most, and that is if Mt. Raainer doesn't blow first...ditto for Vancouver or Portland

Fri, 10/19/2012 - 00:28 | Link to Comment FeralSerf
FeralSerf's picture

Detroit is a dangerous city to live in too.

http://www.neighborhoodscout.com/mi/detroit/crime/

Fri, 10/19/2012 - 08:46 | Link to Comment Umh
Umh's picture

The houses are not that cheap after you factor in the security guards.

Fri, 10/19/2012 - 00:44 | Link to Comment Bear
Bear's picture

Ouch

Fri, 10/19/2012 - 01:58 | Link to Comment Ham-bone
Ham-bone's picture

I'm in PDX - so tell me, which will happen first...any number of natural disaster you enumerate or the Ponzi disaster hits?  I've been hearing bout both for quite some time but neither seems iminent?  All the same, I'll put my money on Ponzi collapse before Mt. Hood blows or Cascadia snaps...and Portland seems as nice a place as any to take it in.

Fri, 10/19/2012 - 00:25 | Link to Comment valkir
valkir's picture

You must be insane moving east to west.Everybody else is moving to opposite dirrection.

Fri, 10/19/2012 - 00:33 | Link to Comment callmestupid
callmestupid's picture

Just packing up and moving away from Seattle.---I've had enough of the crappy weather, the traffic and people are just plain getting grumpy. 37 years ago, I would have told anyone to move here, anyway someone else will fill my spot.

Fri, 10/19/2012 - 00:44 | Link to Comment Bear
Bear's picture

Maybe 37 years ago you were less grumpy ... perspective has a lot to do with it. I mean given your handle 'callmestupid' may just be a reason for leavng Seattle.

Fri, 10/19/2012 - 02:04 | Link to Comment Ham-bone
Ham-bone's picture

Gotta say most who are "aware" are not made happier by the knowledge they glean.  Stepping out of the consensus can be pretty painful...particularly when it's for great periods of time before recoupling with society (if ever).  And Seattle does kinda suck compared to Portland...

Fri, 10/19/2012 - 04:12 | Link to Comment Supernova Born
Supernova Born's picture

Stupid,

What libtard-free paradise you moving to?

Fri, 10/19/2012 - 02:21 | Link to Comment q99x2
q99x2's picture

Columbus, Ohio is good up until the election.

Fri, 10/19/2012 - 07:16 | Link to Comment GCT
GCT's picture

Great place to vist in the summer.  Parked me a Bayliner in Bremerton, great mooring fees and visit my son in the summer.  Arkansas summers suck!

Expensive real estate and expensive to live in Seattle.  Beautiful state and if the wife and I want to head out in the boat to another location fire her up and off we go.  I was shocked to find out how big the live aboard a boat crowd is in Washington.

Fri, 10/19/2012 - 08:44 | Link to Comment Monedas
Monedas's picture

Blacks don't like boats .... since the slave ships .... plus they don't swim well .... sounds like Washington liberals white flight .... with deniability of their own racism !

Fri, 10/19/2012 - 07:26 | Link to Comment Baldrick
Baldrick's picture

I think I would disagree with this article. After finishing The Long Emergency, I would be inclined to bet on Detroit. The thing is, there are THOUSANDS of people who live around the Great Lakes who bought 20-30 foot sail boats and use them every season. So if trade does revert back to 19th century then Detroit may just rise again.

Fri, 10/19/2012 - 07:49 | Link to Comment youngman
youngman's picture

Everyone talks about income taxes....but its the fees ...licenses...subscriptions....tolls...regulations...that the governments are killing us with....they have all gone up...and they are making new ones...

Fri, 10/19/2012 - 08:40 | Link to Comment Monedas
Monedas's picture

Detroit should share it's black, welfare treasure with Seattle .... for the pure Socialist egality and altruism of it !     Think about all the welfare checks they would bring with them .... and maybe a little urban rot .... kind of an inner city bleeding heart transplant !  Oh the humanity !        www.blackwhackattack.com         Monedas       1929        Comedy Jihad Slumlord World Tour

Fri, 10/19/2012 - 08:44 | Link to Comment topspinslicer
topspinslicer's picture

recent advertising campaign about Detroit was SAY NICE THINGS ABOUT DETROIT .... my contribution is I got shot at but it was only a flesh wound

Fri, 10/19/2012 - 08:44 | Link to Comment topspinslicer
topspinslicer's picture

Detroit the land that Democrats controlled forever and a day, black and white

Fri, 10/19/2012 - 08:46 | Link to Comment topspinslicer
topspinslicer's picture

in Detroit you can gets lots of free copper within abandoned buildings

Fri, 10/19/2012 - 08:49 | Link to Comment topspinslicer
topspinslicer's picture

I got a great education in Detroit learning when to duck in and out of alley ways

Fri, 10/19/2012 - 08:50 | Link to Comment topspinslicer
topspinslicer's picture

on the bright side I do get extra combat pay when my firm sends me into Detroit

Fri, 10/19/2012 - 09:09 | Link to Comment Grand Supercycle
Grand Supercycle's picture

GOOGLE FORECAST:

As mentioned Oct 15 - days before premature earnings release sell off - GOOGLE daily / weekly / monthly charts are overextended & significant correction expected.

http://trader618.com
http://www.zerohedge.com/news/2012-12-24/market-analysis

Fri, 10/19/2012 - 10:52 | Link to Comment icanhasbailout
icanhasbailout's picture

I remember being taught that housing shouldn't cost more than 25% of one's income

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