3 ms·
> Everything seems to be on the brink of collapse all the time, housing prices are absolutely bonkers in most cities and wages are, in the best scenario imagina
by onlyrealcuzzo 5y ago
> Everything seems to be on the brink of collapse all the time, housing prices are absolutely bonkers in most cities and wages are, in the best scenario imaginable, same they were 20 years ago for your average professional who lives paycheck to paycheck.
Personal income per Capita went from ~$30k to ~$63k in the last 20 years [1]. REAL weekly earnings are at an all time high [2].
Debt service reached an all-time low during the pandemic [3]. Even for new buyers with house prices at their peak, with interest rates where they WERE, mortgage payments were historically quite low.
Now that interest rates have gone up, payments are ~20% higher. But unsurprisingly, the insatiable demand has also dried up.
[1] https://fred.stlouisfed.org/series/A792RC0A052NBEA https://fred.stlouisfed.org/series/A792RC0A052NBEA
[2] https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q
[3] https://fred.stlouisfed.org/series/TDSP https://fred.stlouisfed.org/series/TDSP
I honestly feel sorry for all the people like you who can't see how manipulated prices are and realize that it's a good deal. The market shouldn't be this manipulated (by our government) and confusing. It's screwing over so many people who think common sense still applies.
- Aeolun 5y agoI really don’t understand what you are trying to say. Are you arguing the buying a home is within reach of the average man anywhere outside of the middle of nowhere?
- onlyrealcuzzo 5y agoIt WAS within reach everywhere beside the most desirable parts of the most desirable cities. You only need to put 3.5% down. When interest rates were at 2.75% and PMI is only .5% for 3 years - the median HH could EASILY afford the median house. At 2.75% - almost 40% of your mortgage payment is principal - even in the first year. This made the true cost of your housing absurdly cheaper than rent.
- sjg007 5y agoUh no, not in the Bay Area… or any place that requires a jumbo loan.
- Der_Einzige 5y agoOwning a house is so much better than renting in Portland and you need jumbo loans here. It's only places like the bay and other ultra hcol locations where renting is cheaper. I specifically bought my house to escape renting in the bay area when my job went remote. I do not want to rent anywhere near Portland. More than Half the rent price for a third of the home prices...
- sjg007 5y agoRight but you can't do that with 3.5% down.
- Der_Einzige 5y agoI did it on 5% down...
- onlyrealcuzzo 5y agoYou can get places for under $920k in parts of the bay that aren't the Peninsula, Mill Valley, and SF.
- yobbo 5y agoYou yourself actually linked to the relevant plot "Employed full time: Median usual weekly real earnings". If you want to make credible arguments, look for median income. Q3 2001: $338, Q3 2021: $367, so that's an 8% increase, claimed to be CPI adjusted. CPI measures price changes for things such as flip flops, snickers bars, and TVs - things you find in Walmarts. What people complain about is the price of housing.
- deleted 5y ago[deleted]
- onlyrealcuzzo 5y agoThe price of housing is irrelevant. It's a debt market. The debt service of housing (and property tax and insurance) is what matters.
- disambiguation 5y ago> Personal income per Capita went from ~$30k to ~$63k in the last 20 years At an inflation rate of 3%, the value of money decreases by half every 25 years.
- onlyrealcuzzo 5y agoThat's why I posted the second link that REAL income reached an all-time high during the pandemic, and is still higher than any time 20+ years ago.