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.

Key Ideas

  • 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

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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.

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For details, please see How the Fed's Inflation Policies Crucify Workers in Pictures.

Mike "Mish" Shedlock