Arksansas - Where it's a crime to not pay rent.

[sanantone]

is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

In other words, their poverty is being subsidized by other people. At least Arkansas is not as dependent as many other states are on other states' tax dollars, but most of the 10 most federally-dependent states are in the South and Appalachia. 


https://www.businessinsider.com/homeowne...map-2017-7

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is someone making $16000 a year getting their employer to pay for their health plan ?

or are they paying for their own ?

or are they just deciding to pay the tax penalty ?

Medicaid

There is no more tax penalty

or they work at Walmart and pay $50 a month, but I'm sure they are just going for the free Medicaid.

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Yes, $75 a week is very doable for someone who makes $1333 a month.  

$1333
-133 FICA
-37 State tax
-300 savings
--------------------
$863 disposable income --- this is very doable

It boils down eliminating instant gratification for a short period of time for long-term benefits.  

Now suppose this person gets married and both make $16,000 a year, one person's salary can go toward the house payment and it is free and clear in 4.5 years.  Can we do the same in California?  No.

Now the $16,000 a year is an example that your dollar can go much further in AR than in coastal cities.  The average salary in Little Rock is much higher than 16k, but you can see how low your salary can go and you can still own a home (the example of a home was one from Little Rock).  You will never be able to afford a home in coastal cities at that salary, therefore your upward mobility is much better in AR than in coastal cities despite what your articles say.  Teenagers can afford to buy a home in AR.

And, what's going to happen to that disposable income? You have to pay for rent, utilities, food and transportation. And, you better live in a city with decent public transportation; otherwise, you would need a car or find someone to drive you everywhere. If you have to live with your parents, then you're poor.

Who is making $16k in California? People working part-time? Wages are higher in California. House prices are also higher in California, but they aren't as high as you make them seem.

You have roommates to absorb the cost.  This is very doable.

Or, you can move to another state and be able to afford a house without having to live with roommates for several years.

There are many blue and purple states with similar and higher homeownership rates than Arkansas. 

https://www.businessinsider.com/homeowne...map-2017-7

The roommate thing is only for a couple of years.  People do it all the time, heck I even had roommates when I was younger.  But now you can see how little you can earn and still own a home in AR.  The safety net is much better there as you can still own a home despite being in "poverty". 

Remember "want" is not a need, and falls into the category of instant gratification.  

Also, a little bit of real data, my rentals in Indianapolis, Birmingham, Memphis,  are worth about $90,000 each.  My average tenants make over $5,000 a month (usually 2).  Why do they rent? I'm not sure, but their income to housing cost is more effective there too.

You said 4.5 years, and that's several years, not a couple.

I don't see what you're seeing. Most people in Arkansas, as poor as it is, are not making $16k.