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

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

Wide Gap Between Wages and Median Home Price: Home Buyers Dilemma

The BLS says wages are rising faster than the CPI. Prospective home buyers would not agree.

Housing Bubble and Everything Bubble in One Simple Picture

To understand the magnitude of the housing bubbles simply compare the index of wages to the index of prices.

Fallacy of Wage Growth and a Housing "Shortage" in Pictures

The WSJ says there is a "historic shortage of homes". That's nonsense, but sales are depressed. Why? Real wages explain.

How the Fed's Inflation Policies Crucify Workers in Pictures

Every month, pundits comment on average wages. But median wages best explain how the Fed's policies crucify workers.

Senate Battle in One Picture

The midterm election coming up in November. I expect Democrats will take the House. The Senate is iffy for Democrats.

Squeezed Out of House and Home

I compared apartment prices as determined by the Rent Cafe to shelter indexes in the CPI.

Fed Brainwashing on Net Wealth in One Picture

The Fed released its "Z1" report today on Household Net Worth and Domestic Nonfinancial Debt. Let's dive in on wealth.

Trump "Boom" in One Picture

Deficits have only been at this level in or shortly after a recession. Unfortunately, this is the new normal.

Explaining China’s “Import Surge” in Seven Pictures

As a follow-up to China Exports, Imports Soar: Global Trade Outlook Improving? let’s investigate China’s “Import Surge” with a series of pictures.