Posted on 10/18/2023 10:12:56 AM PDT by Kaiser8408a
Housing in the US is simply unaffordable!
Under Bidenomics, home prices are up 30% while real weekly earnings growth has been negative for most of Biden’s Presidency. And mortgage rates are up 178% under Bidenomics.
Sky-high mortgage rates and still-rising home prices have made it harder than ever to afford a home, especially for first-time buyers. The typical buyer needs to earn 15% more than they did a year ago–and wages are only up 5%.
It’s harder than ever for Americans to afford a home.
A homebuyer must earn $114,627 to afford the median-priced U.S. home, up 15% ($15,285) from a year ago and up more than 50% since the start of the pandemic. That’s the highest annual income necessary to afford a home on record.
This is based on a Redfin analysis that compares median monthly mortgage payments for homebuyers in August 2023 and August 2022. The income data in this analysis is adjusted for inflation. See the bottom of this report for more on methodology.
The typical U.S. homebuyer’s monthly mortgage payment is $2,866, an all-time high. That’s up 20% from $2,395 a year earlier, and by that time payments had already increased substantially from the beginning of the pandemic, a time of ultra-low mortgage rates and yet-to-skyrocket home prices. In August 2020, for instance, the typical monthly payment was $1,581, based on that month’s average mortgage rate of 2.94% and median home price of $329,000. At that time, a homebuyer would have needed to earn $75,000 per year to afford the typical home.
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Face it, the US economy and housing/mortgage markets are addicted to gov!
Doctor, doctor (Yellen), we have a bad case of unaffordable housing!!
I like Yellen’s Space Invaders suit, so ’80s!
(Excerpt) Read more at confoundedinterest.net ...
When I bought my first house in 1992, you needed to have an income of at least $40K, but houses were in the $200K range
Build back broke! Anyone else notice how the leftists who loved to trash talk Trump on their personal Facebook pages, as example, have been silent about anything political for at least a year now?
conventional wisdom used to say your mortgage should never be more than three times your annual salary.
Yet they do not want illegals being turned down for mortgages. How the heck does that work?
Yeah, but so many more people are making $200,000 because of Bidenflation. (/s)
The American Dream died a while ago.
The illegal aliens, the crooks, and the parasites are doing fine. The US citizens with jobs and tax bills are just out of luck. Nothing for them.
I bought my current house in 2008 for 155k (3BR2B)
I work for a tech company out of Brooklyn NY, but I live in deep flyover country in North Dakota. I can’t believe my NY colleagues pay $2-3,000 month in rent. When I told them my monthly mortgage is $660 they thought I was lying.
Some people are crushing it, of course. Our neighbor’s son is graduating next May with his Certified Registered Nurse Anesthetist (CRNAs) degree as is his girlfriend.
They will be advanced practice registered nurses who administer anesthesia and other medications. They monitor patients who are receiving and recovering from anesthesia. They both have job offers at the same hospital in Boise with very good salaries. They won’t have any trouble buying a house in the Boise area.
These kids in their mid 20s are nailing it. He’s going to the general ICU and she’s going to the Pediatric ICU.
The US is comprised of 50 member nations, all “mostly” sovereign. Many are becoming third world nations: A few rich, a lot of poor, and very little “middle class”.
e.g. California, or at least parts of it. Also, western Washington state (where I lived most of my life in the Seattle area).
I have explained it in a similar way, to others.
I am glad we have separate states.
Eh...anyone who thinks they actually own their home is only fooling themselves anyhow.
Cursory review online, is that home prices are far out of line with median family income compared to the past.
Median house prices in 1960 were about 2.2 times the median family income at the time. Looking at the ratio of median family income to the median home price today, will show why so many find housing unaffordable.
Pretty much at the point that if you don’t own a home, you never will.
Flooding the country with 100 million illegal and legal ‘immigrants’ combined with Blackrock buying and the Air BnB dynamic has changed things for the long haul.
House prices are currently the most unaffordable they have ever been.
Prices will collapse as soon as investors dump inventory on the market. Prices will have to come way way down for demand to recover.
“the leftists who loved to trash talk Trump on their personal Facebook pages, as example, have been silent about anything political for at least a year now”
They are probably on the run from debt collectors...
lol.
I was looking at the numbers in detail the other day.
The affordability indexes vary wildly by location.
Large parts of the country are totally unaffordable—but there are areas where it can be done by average folks.
West Virginia has very favorable stats—just one example.
All the affordable older homes in my hood are being bought then razed for million dollar McMansions.
Sounds self-contradictory. The “typical home” by definition is one that is most commonly purchased, and they say it’s unaffordable. Perhaps the conclusion is based on a lagging indicator.
What does “addicted to government” mean? The increased interest rates caused by government spending?
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