I see charts from the 1960’s – 2000 showing wages keeping up with the cost of housing. Then there’s a huge boom in housing cost. What factors caused the price to jump so high? Is it only the low interest rates, or did something else happen?
For example: [https://imgur.com/a/8HWIlqx](https://imgur.com/a/8HWIlqx)
Edit:
This guys just uploaded a video today answering the question I posted. He says a lot of the same things that you guys said too[https://www.youtube.com/watch?v=eL9DBjfhWAE](https://www.youtube.com/watch?v=eL9DBjfhWAE)
In: 50
People/companies buying up houses to flip or for airbnb. Reduces the supply. 2 billion more people alive now than in 2000 and 5 billion more than in 1960. More demand.
Where did you get this graph? It doesn’t appear to be right. Certainly “growth rate” is just flat-out wrong – it presumably means “growth from 1960 baseline”. But even then, the median household income line, even adjusted for inflation, is just blatantly false.
a combination of zoning regulations limiting supply and just the fact that we cant make more land.
In addition to a lot of the things said already housing has gotten a *lot* bigger. Lewittown, the first mass produced, cookie cutter suburban development in the US had houses of 750 sq ft (70 sq meters), you’d very rarely find houses that small being built today.
Because people have chosen to live and buy as well as they can afford. Everyone wants to live in the best areas, close to work, schools, entertainment etc. And those areas are few, and the cost goes up.
First of all, the housing price metric is skewed by interest rates, which used to be much much higher before 2001.
The rent metric is much more relevant and it seems like it’s pretty stable relative to income outside of a few years in the 70’s when inflation was really bad and the 2010’s when gentrification removed a lot of the cheaper rent available in the market.
I feel like a lot of people in here are ignoring good ole supply and demand. People are willing to pay more for housing, so housing goes up. This is because there’s been an uptick of investors and corporations buying housing so they can use them as rental properties. A very large portion of houses aren’t owned by the people living in them anymore.
I don’t know why more people aren’t mentioning this, but corporations buying up investment property is probably the single biggest contributor to the current housing shortage (and thus high prices). I live in Phoenix AZ. Over 20% of the homes here are vacant because they were bought up by investment firms that are just sitting on them. We have had some of the highest increases in cost of living and housing prices nationwide.
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