The Case for Buying a Home You Can't Afford

Here’s a happy reminder if you're someone who finds escape by perusing real estate listings for unobtainable homes: A mortgage that strains your budget now will be a lighter burden a few years, and a couple of job promotions, down the line.

Young professionals willing to stretch their budgets now should consider Boston, Seattle, and Washington, D.C., among other cities, according to a new report from Trulia. In New Haven, Conn., the typical millennial (defined by Trulia as an adult between ages 25 and 34) can expect to spend 37 percent of her income on housing in the first year of her mortgage. Three years later, though, the same homebuyer’s monthly payments will fall below 31 percent of her income, according to Trulia’s estimates. By the last year of her 30-year mortgage, she’ll be spending 11 percent of her income on housing.