3 ms·
People not wanting to work is not the main reason we’re seeing more people find housing unaffordable. It’s the extreme rise in price of housing relative to inco
by gradys 4y ago
People not wanting to work is not the main reason we’re seeing more people find housing unaffordable. It’s the extreme rise in price of housing relative to income.
I make dramatically more than my parents did when they were buying their first house around my age, but as a fraction of my income and savings, housing costs vastly more.
(It’s also not clear that the skilled trades jobs Gen Z apparently doesn’t want actually pay more than the alternatives. See other comments on this post.)
- rednerrus 4y agoHere are the most reliable numbers I could come up with: 1990(Q1) average home price $124,000 2020(Q1) average home price $329,000 1990 average interest rate 9% 2020 average interest rate 3% 1990 average monthly mortgage payment $998 2020 average monthly mortgage payment $1387 1990 Average Wage Index (AWI): $21,027.98 2020 Average Wage Index (AWI): $55,628.60 1990 average monthly mortgage as a percentage of AWI 4.7% 2020 average monthly mortgage as a percentage of AWI 2.5% I'm stopping pre-covid as it doesn't seem like the real estate market has not had time to figure out the rapidly increasing interest/AWI rates. All of the numbers are based on US numbers.