Home Buyer's Dilemma Explained in One Picture
Mike Mish Shedlock
I got the idea for the above graph from a similar idea by Sven Henrich.
In my chart, I indexed all the values to 1982.
- Those who seek to buy their first home will have a very difficult time finding one that is affordable.
- There was a small window of buying opportunity from 2009 to 2011 but that window has since been closed.
- Making matters worse, rent prices accelerated in 2011 and far outstrip wage growth.
Median vs Average Wages
It's important to note that hourly wages are averages. The median wage earner is even worse off.
The latest median wage data is from May of 2016. It shows real median wages decline in seven out of the last 11 years.
For details, please see How the Fed's Inflation Policies Crucify Workers in Pictures.
Mike "Mish" Shedlock