If you do not already own a home it's getting harder and harder to buy one. Meanwhile, rent outstrips wage growth.

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. Also note the difference between median and average new home prices.

Purported CPI

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

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Meanwhile, the Fed is busy hiking. Each hike in interest rates lessens the amount of mortgage one can afford.

Mike "Mish" Shedlock

Home Buyer's Dilemma Explained in One Picture

If you do not already own a home it's getting harder and harder to buy one. Meanwhile, rent outstrips wage growth.

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

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Investigating Trends in Median Home Prices: When Did Price Acceleration Start?

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Investigating the Mystery of Weak Wage Growth

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New Home Sales Decline 0.6%, Near Expectations, Prices Jump

New home prices are up, sales are soft but slowly rising over time. Sales are only 0.5% higher than a year ago.

Real Wages Decline Year-Over-Year

Wages are not keeping up with consumer price inflation. The average worker is worse off than a year ago.

Imaginary Wage-Inflation Conundrum

Economists are puzzled over the wage growth conundrum. Wages were supposed to rise significantly. They didn't. Why?

Debate Over Food Inflation: What's the Real Story?

Is food a bargain or are prices rising far faster than the BLS says they are?

Existing Home Sales Rise, Median Price is Up 14% From Year Ago

Existing home sales rose in January albeit from a big negative revision in December. Prices escalate.