For who and what income are you talking about? A first year teacher starts at $55k in my school district and is over $65,000 after 5 years. Cops in my area average a little more than that, nurses are around $40 an hour and plumbers, electricians, carpenters all higher. All of those jobs pay enough to afford a starter home in a decent area and a nicer house if it’s a married couple both working.
ALL!!!
Housing price increase 2000-2022 = 77.4%
Inflation 2000-2022 = 66.5%
Seriously, give an example of someone’s age and income that can’t afford to buy something. I know a lot of young couples that bought a home before or when they got married.
Also what is your definition of a starter home? You and KC seem to think if it’s not in one of the top 10 areas in a state it’s a ghetto.
I literally just posted the data.
The median income in 2020 was 67,521.00. in 2000 it was 41,989.89.
If you purchase a home that’s 3 times income in 2020 that would be $202,563. In 2000 it was $126,000.
This link says the average price of a starter home is $215,000 in 2019.
Which is about 62%.
Houses have went up in price by 77%.
Thank you for proving my point.
So someone would need a less than a hundred bucks more a month to buy the same house.
Housing prices have outpaced wages by 15%.
That is real data.
You refuse to believe math.
Yes they have, it would cost a little over $100 a month to buy the same house today, if someone can trim $30 a week from their budget they can buy that home.
So that $30 a week is removed from some other aspect of the economy.
But, hey, let’s not math get in the way of your imagination.
???
Sure, if you say so.
If someone can’t afford an extra $20,000 on a 30 year mortgage they shouldn’t buy and rent. A $1,500 a month 2 bedroom apartment over 30 years will cost them over a half a million dollars. Bringing their lunch and cancelling cable TV will give them an asset (their home) worth close to $400,000 using your housing inflation numbers.
So 15% increase is irrelevant?
Just checked.
That math is wrong.
It is what it is, the economy fairy isn’t going to wave her magic wand and make it change. People can buy a less expensive home, earn more, save more for a down payment or rent forever. After reading your’s and KC’s posts I’m thinking that build to rent is going to be the future for a lot of people, I’ll have to look into investing in a company that does that.
Our posts are irrelevant.
Look at the math.
That may or may not be true, but it is more due to technology and culture than economic reasons.
Many people entering today’s workforce are not wanting to be tied down to one spot for 15-30 years, or are in a profession that can do a significant amount of work remotely.
I am and it’s obvious that a lot of people will be renting their whole life instead of buying a less expensive home, saving more, earning more or anything else because housing inflation is slightly higher than inflation in general.
By using that word you obviously are math challenged