https://preview.redd.it/3bbhbluxf2ea1.png?auto=webp&v=enabled&s=a8af4070b6c999cd9eebb153bbbc85a75cabe919
A look at house payments vs income ratio. Housing market has never been this unaffordable (in history)
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Ah it’s blue, nothing bad can happen when it’s blue
You should see ours in Canada, the peak would be off the charts lol..
it’s time to short the real estate market for the second time 
According to your own image it was more unaffordable last year.
The dinosaurs running our government were able to work one summer job that paid for their tuition and expenses that year.
They have no clue whatsoever.
Houses pop up for sale in my neighborhood. Go off sale quickly. Then it’s for rent. Wonder why shit isn’t affordable for single-owners.
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I’d like for this chart to go back to say, 1850.
TIL 22 years of data = all history
What did house payments versus income look like from 1970 to 1980 when inflation was sky high?
Given inflation sky rocketed, real asset prices including home values rose. However, wages (as typical during inflation), did not rise as much as real asset prices.
So pointing out that home prices as compared to wage income rose without addressing what happens during inflationary periods is unhelpful.
On a side note, from 1970 to 1980, homes prices TRIPLED in value (during this 10-year period, home prices rarely fell in value as compared month to month).
In 1982, home prices did fall but the next year, prices resumed the uptrend.
“History”
Chart bottoms at 1997…
This thread is rich. People complaining about politicians profiting off people not being able to afford housing are the the same people holding SPY puts.
Way cheaper when we were all serfs
all the ppl bitching in this thread don’t own a home lol
Why is it every time something peaks is when I buy it? Bought a new house last year. Car in 2008. Etc. Get your burritos now or in 2 weeks, I’m looking at Mexican for Lunch tomorrow.
And there are a bunch of people with cash on the sidelines…..don’t expect a huge pullback. People will snatch properties up.
Now compare this to the rest of the world and see that the US remains one of the most affordable places to own a home.
Back then we were overbuilt. Now there is a shortage. I don’t see it falling much more. Houses just going to be expensive from here out
I’m calling cup and handle.
Except for 2 months ago that is.
One thing about statistics . You can make them show what ever you want .
1997 to 2023 is not a very good representation of ” history ” for example. Number 2 what is the basis for income ?
What is the actual home price being used in comparison to that income ?
I’ll agree home prices have risen but everything has risen in price .
Should we now say eggs have never been less affordable ?
Or should we compare the price of eggs to housing and then price Starbucks coffee to gasoline ?
The cost of housing, as a percentage of income, is expected to rise in the next few years. This is based on data from the US Census Bureau and Zillow. The average affordability ratio was 30.2% in 2017, and it is expected to increase to 31.0% by 2021. This means that people will have to spend more of their income on housing costs, such as mortgage payments, taxes, and insurance premiums.
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Do not discount the laundering of money in the US real estate market. Foreign nationals do not have to show proof of funds to purchase US real estate. Americans are competing with global criminals looking to safehouse their cash. Most never even rent the property. It sits empty, eventually sold at a profit and walk away with cleanly laundered cash. A few real estate pros have estimated 10% of apartments in NYC and SF are purchased this way. Don’t think middle America skates. They buy houses all over the country. 200k here, 300k there.
The largest landowner in Cleveland is a Ukrainian oligarch.
It’s not going to crash. You are going to be renting till you get a windfall
It’s only worth what you’re willing to pay for it
HOUSES WILL NEVER GO DOWN IN THE US
* Gov won’t let a crisis occur
* Institutions will always buy when cheap then rent
* USD is going to be devalued in coming years due to shitty gov – this will make real assets gain in value and new construction expensive
* Inflation will not ever be 2% again, and Fed will have to raise target to 3%
You will always not have a home, rent forever, and be happy.
Post a chart with the percentage of homes owned by investment firms vs primary residence each year.. Unfortunately, that’ll keep prices inflated due to the lower supply… (bc banks ain’t selling their homes it’s rent for life).
My rich real estate selling friend can’t understand why young people aren’t buying houses. He is opposed to raising the minimum wage.
The problem is inequality and rich people has increased. More of us cant afford homes. But more people can. Its a broken system
Want me to really blow you’re mind? Go pull 15 vs 30 year mortgages starts and then total interest expected in the total amm schedule. Also, the argument that “oh well rates are cheaper these days” is so much horseshit it instantly tells me everything I need to know about someone when I hear that… since 1980 avg price per square foot is about 7 fold more expense. Average income is only 3 fold larger, and this number gets widened when you look at homebuying incomes.
Hmmm, if I were a betting man, I would say that this kinda market can only be good for the wealthy and corporations. Everyone else will suffer.
That’s because actual transaction activity is low. People haven’t really been forced to sell into the market yet so there hasn’t been any reason for asset prices to materially decrease.