If you do not already own a home it's getting harder and harder to buy one. Meanwhile, rent outstrips wage growth.
- 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. Also note the difference between median and average new home prices.
The CPI is way understated for many, if not most people, as anyone in school, anyone paying their own medical insurance, or anyone seeking to buy a home will attest.
Median vs Average New Home Price
Meanwhile, the Fed is busy hiking. Each hike in interest rates lessens the amount of mortgage one can afford.
Mike "Mish" Shedlock