4 ms·

Lots of headroom left on the 1970's, prices are set at the margin: https://fred.stlouisfed.org/series/LNU01300002 https://fred.stlouisfed.org/series/LNU01300002

Lots of headroom left on the 1970's, prices are set at the margin: https://fred.stlouisfed.org/series/LNU01300002 https://fred.stlouisfed.org/series/LNU01300002 Housing prices on the other hand - mostly stable until the 1980's, and then shelter became an investment vehicle: https://fred.stlouisfed.org/series/LNU01300002 https://fred.stlouisfed.org/series/LNU01300002 The prediction is that we will have a period of monetary inflation to deal with the problem of asset inflation.

refurb 5y ago
My point stands. The vast majority of households were dual income in 1984. Since then house expenses have only increase by 5%. The real issue is people in HCOL cities think their experience is the same across America. Plenty of places in the US where housing is still affordable.
- HarryHirsch 5y ago
  What kind of salary can you get in LCOL cities, and will you have to move when you change jobs? The withdrawal from the countryside has been ongoing for a long time. In the 1980's one might have joined Dow in Midland, MI or Upjohn in Kalamazoo, and expected to retire with them. Nowadays, job tenures are short, and one would think that this is reflected in demand.
  - refurb 5y ago
    You realize the Upjohn plant in Kalamazoo is now Pfizer's largest manufacturing site in the US? They actually did the final packaging of their Covid vaccine there. I have a friend who has worked there for 20 years. He's not making Bay area wages, but he also bought his house for $150k a decade ago (houses are now ~$250k). Public schools are great. There is no way to "have your cake and eat it too". Large cities are expensive because that's where people want to live and wages are high. In exchange housing is highly priced. There are plenty of smaller cities with affordable housing. Sure, you might be limited to a handful of employers and yeah, your wages will never be at coastal levels, but that's the trade off.

refurb 5y ago

My point stands. The vast majority of households were dual income in 1984. Since then house expenses have only increase by 5%. The real issue is people in HCOL cities think their experience is the same across America. Plenty of places in the US where housing is still affordable.

HarryHirsch 5y ago
What kind of salary can you get in LCOL cities, and will you have to move when you change jobs? The withdrawal from the countryside has been ongoing for a long time. In the 1980's one might have joined Dow in Midland, MI or Upjohn in Kalamazoo, and expected to retire with them. Nowadays, job tenures are short, and one would think that this is reflected in demand.
- refurb 5y ago
  You realize the Upjohn plant in Kalamazoo is now Pfizer's largest manufacturing site in the US? They actually did the final packaging of their Covid vaccine there. I have a friend who has worked there for 20 years. He's not making Bay area wages, but he also bought his house for $150k a decade ago (houses are now ~$250k). Public schools are great. There is no way to "have your cake and eat it too". Large cities are expensive because that's where people want to live and wages are high. In exchange housing is highly priced. There are plenty of smaller cities with affordable housing. Sure, you might be limited to a handful of employers and yeah, your wages will never be at coastal levels, but that's the trade off.