Vietnamese families can afford million-dollar homes in the US

In the United States, the average income in New York is $120,000 a year, while the price of a two-bedroom apartment is about $1 million (equivalent to 10 years' worth of income). The top 10% of earners here make up to $400,000 a year, more than enough to easily afford a home.

Let me give my own example. I live in Boston, one of the most expensive cities in the United States. My wife and I have a combined annual income of around $450,000 and we have managed to buy a house. Of course, like many Vietnamese people, we are paying for it over 30 years. It is not because we do not have the money to pay it off sooner, but because the mortgage interest rate here is only 4%, while even just investing in an index fund yields 8% per year. So, I would rather let my money grow through investment than pay off the mortgage early.

Our family's income is only in the top 10% where we live since it is an expensive city. Meanwhile, the cost of a home here is about US$1 million (a little more than twice our annual income). One major difference compared to Vietnam is that many generations live together in the same house, which is not the case in the U.S. The lifestyle here is also different as people want to enjoy life more and home ownership is not as much of a priority as it is for Vietnamese people.

Reader Anne

The comment was left on an article about how an American homebuyer now needs to earn at least $114,000 a year to afford a $431,250 home - the national median listing price in April. This means homebuyers need to earn $47,000 more a year to afford a home than they would have just six years ago. Median household income was about $80,600 annually in 2023.

Also believing that it is entirely feasible for Vietnamese families to buy homes in the U.S., reader Eurthho offered an analysis:

"Suppose a Vietnamese family in the U.S. includes a couple and two children over the age of 18, they would have four sources of income. Even if they are doing manual labor and earning minimum wage, their combined annual income would still be over $150,000. With careful saving, even living in San Jose, California—also one of the most expensive places in the U.S.—they could still afford to buy a home and pay it off over 30 years. The biggest challenge is simply covering the initial down payment, which is 20% of the home’s value.

If family members are willing to support one another, children can eventually branch out, buy additional homes, and move into their own places. No one can buy a big, beautiful house and shoulder a 30-year mortgage alone. But it is different if the whole family works together. The chance of losing all four income sources at once does exist, but it is very low."

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*The opinions were translated into English with the assistance of AI. Readers’ views are personal and do not necessarily match VnExpress’ viewpoints.