> Do you think the income stagnation is due to housing costs rather than globalization? I'm not denying globalization's role. However, as bufordsharkley said i

> Do you think the income stagnation is due to housing costs rather than globalization? I'm not denying globalization's role. However, as bufordsharkley said in a sibling comment, housing costs often do prevent people from moving for work opportunities. They deprive the companies of potential hires and are a significant opportunity cost for the individual. In aggregate this might have an effect. Plus, long-term stagnating income is painful per se, but it's only disastrous when core expenses rise at the same time. > with increasing urbanization the costs of housing was rising dramatically (as currently people prefer the dense urban areas of a city to its cheaper suburbia) I'm not american so the phenomenon must be different to me. I think most people end up paying too much for housing, relative to their income. Fortunate and less fortunate people alike spend 35-50%, it's just that some end up in a dump far away from anything (incl. their workplace) while others have a proper flat in the city. Also, it might be interesting to look at the problem from an age perspective. Retirees (except the wealthiest ones) probably don't expect to see their incomes rise much, and as a group they're more likely to live in cheap places in the countryside. Younger, working-age people feel the housing pressure, need income to relieve it, and are facing dwindling opportunities for upward mobility.