Portland Family Earning $250K A Year Refuses To Spend Over 30% On Housing–Are They Wise To Wait For The Market To Cool Down?

Laura and Samuel Graves, a couple earning $250,000 a year, have made headlines for their decision to hold off on buying a home in Portland, Oregon. Despite their high salaries, they maintain their stand of spending no more than 30% of their monthly wages on housing – amidst Portland’s housing market defying the national trend. The average values of homes in the city are now pegged at around $538,294, well above the U.S. average of $362,481.

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“We could technically afford to buy a house now,” Laura Graves told Business Insider. “But that would mean putting almost half our income toward the mortgage alone every month, and that’s not something we’re comfortable with.” The Graves are waiting for the market to cool down while living in an apartment with their two children.

The couple is trying to avoid falling into the trap of being “house-poor.” This refers to homeowners who spend much of their income on housing, leaving little over for retirement, child care, and medical bills. The Graves hope to cap their housing costs at 30% of their monthly take-home pay, around $11,000. However, most houses in their preferred neighborhoods would push their housing costs up to about 50% of their income, a figure they find unmanageable.

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Experts in the real estate market are divided on whether the Graves’ strategy is the right one. Some real estate experts applaud the couple’s move, saying it’s wise to wait until the market settles, especially with the current economy. “Home prices are still relatively high, and those mortgage rates have been all over the map,” said one local real estate analyst. “If they’re not in a hurry, it may pay to wait to see if the prices drop or the rates improve.”

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Others say the couple may be in for a very long wait. “There’s no guarantee that house prices will fall significantly in Portland,” one mortgage expert said. “If interest rates keep going up, they could pay more.”

The Graves are aware of the risks but remain committed to their plan. “We’re not willing to gamble our financial future,” says Samuel Graves. “We’ve worked hard to build our savings, and we don’t want to jeopardize that by stretching ourselves too thin on a mortgage.”

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Their decision to wait has sparked a broader debate about the state of the housing market, particularly in high-demand markets like Portland. Scores of families are facing similar situations: they dream of a home. Still, they are trying to create a strategy that balances an increasingly expensive housing market with surging interest rates.

“Buying a home is a big dedication of money within any budget,” said one financial advisor. “It’s not about being able to afford it this month, but whether you can sustain those payments in the future without giving up other important things in your life.”

For now, the Graves are happy to wait and see, hoping that the market swings their way. “We'll buy when the time is right for us,” Laura Graves concluded. “Until then, we’re happy where we are.”

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