3 ms·
How is this possible if housing purchase price did not change in real terms, and vs household income, greatly decreased in the same period? Simply put... well
by anovikov 3y ago
How is this possible if housing purchase price did not change in real terms, and vs household income, greatly decreased in the same period?
Simply put... well the chart is a blatant lie.
Average rent was $339 in 1985 and $1191 in 2021. Median household income was $23630 in 1985 and $70780 in 2021. Difference is only 17.3% and not worth any discussion. Naturally rents should increase as a proportion of income because they don't get any cheaper with technological progress: when people make more, goods for which productivity reduces prices, get cheaper, and the remaining income must be sucked in by "something". Which is rents, education and healthcare.