4 ms·
Don't forget that until about the mid 90s most people were only buying with one income. And even into the 2000s that second income was often significantly lower
by ljf 4y ago
Don't forget that until about the mid 90s most people were only buying with one income. And even into the 2000s that second income was often significantly lower.
So that graphs never align that well when you look back and try to say 'in the past it was 3x salary for a house, now it is 6x'
That is as buyer are now competing for houses with two good salaries to buy with.
- ljf 4y agoTo add to this, the low interest rates have added the ability for these joint income purchasers to bid higher to win the property they want. In the UK at least, the move has broadly been in line with the 3x joint salary with mild adjustment for increased borrowing opportunities, but largely driven by the increase in joint salary.