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I don’t think it is easier for the average person today to achieve the standard of living of the average person 10, 20, 30 years ago. Housing is the biggest cu
by JambalayaJimbo 2y ago
I don’t think it is easier for the average person today to achieve the standard of living of the average person 10, 20, 30 years ago.
Housing is the biggest culprit. It has gone up something like 5x in the last 20 years, while salaries have increased maybe 20%.
- yorwba 2y agoSure, the value of housing has gone up a lot since 2004 (about 2.5×) https://fred.stlouisfed.org/series/BOGZ1FL155035013Q https://fred.stlouisfed.org/series/BOGZ1FL155035013Q What people actually pay for it, though, in terms of mortgage payments as a share of income, is at basically the same level (6%) https://fred.stlouisfed.org/series/MDSP https://fred.stlouisfed.org/series/MDSP As long as people buy houses on credit, high house prices only reflect that mortgages are cheap.