Quote to Research

[tikiera]

Michael Hill pointed out in a Washington Post , this Monday, "forty years ago, the median national price of a house was about twice the median household income. In some parts of the country, this ratio was closer to 1 to 1. Twenty years ago, the median home price was about three times income. In the past 10 years, it jumped to four times income." And in most thriving metropolitan areas, Hill adds, the ratio is far higher than that."

Huh. 

Comments

[jamesofengland.livejournal.com]

That relative rise is a near universal companion to a successful economy. Houses (basically, land + permission + labour) cost what the market will offer. As people spend less on food and other necessaries, the amount that they spend on housing goes up as they compete with each other. It's one of the core relative wealth/ absolute wealth problems.

It's why the current correction is never going to end up with us back in the 70s, although it's likely to knock prices down a fair bit further. Thanks for the implied link, though. I think it's one worth quoting.