3 ms·
I don’t think the price of home sales is a good measure of housing affordability. Here’s a graph from Zillow which does not show a huge increase in last 30 yea
by alexmingoia 6y ago
I don’t think the price of home sales is a good measure of housing affordability.
Here’s a graph from Zillow which does not show a huge increase in last 30 years: http://www.doctorhousingbubble.com/wp-content/uploads/2016/07/mortgage-and-rent-affordability.png http://www.doctorhousingbubble.com/wp-content/uploads/2016/0...
According to the American Housing Survey, housing as a percentage of income only increased from 19 to 22% from 1985 to 2005.
Overall, wages have exceeded or kept pace with inflation since 1979:
https://www.politifact.com/factchecks/2019/jan/30/kamala-harris/are-paychecks-failing-keep-inflation/ https://www.politifact.com/factchecks/2019/jan/30/kamala-har...
- Retric 6y agoAverages ignore the growing income inequality. From 1979 - 2018 incomes for 90% of the population is up 23.9%. 90-95% up 45.7%, 95-99% up 71.3%. Top 1% is up 157.8%. https://www.epi.org/blog/top-1-0-of-earners-see-wages-up-157-8-since-1979/ https://www.epi.org/blog/top-1-0-of-earners-see-wages-up-157... So chop off the top 10% and numbers are going to look very different. From housing to CPI it’s tricky to adjust for such things to understand how most of the population is doing.
- taurath 6y agoIn that time homeownership has gone down - those BUYING houses spend less of their income on it, but that’s a smaller and smaller piece.