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Suggest retitling the article as.. The article is based only on the 55% of households in the top 50 US cities by size. The article wrongly states that rents gr
by rtfartfa 6y ago
Suggest retitling the article as..
The article is based only on the 55% of households in the top 50 US cities by size.
The article wrongly states that rents grew by 175% in excess of household incomes in these cities over this period. But on page 15 of the linked report in the caption to a figure it says that "Median rents increased 93% between 2001 and 2020 while median incomes increased by 58%."
Ie so rents indeed compounded by 1% faster than wages over this period in this subset of US housing. But this is nothing like the implied excess compounding of rents over income of 5% per annum or 175% total.
Did anyone else stop to think about the intuitively tight linkage between incomes and rents and how these could possibly diverge at such a rate implied by the headline?