MAR 20, 2018
Those who want a home and can afford a home have a home. Radically changing views of home ownership, marked by millennials who see a house as an ungainly, overly expensive, pointless anchor, combined with stagnant-to-falling wages for most of the country has led us to this point.
Most of those in the housing market think they’re selling to people who look at housing as they do, as the cornerstone of the American dream. More and more, every day, that is not the case, and even for those who do want a house, they’re increasingly priced out of reach.
The WSJ says there is a "historic shortage of homes". That's nonsense, but sales are depressed. Why? Real wages explain.
"Nationwide, membership in the National Association of Home Builders peaked at 240,000 in 2007, then dropped to 140,000 in 2012, where it has remained throughout the recovery."
So what? I fail to see a crisis, at least the one the WSJ is moaning about.
Some claim that a rising tide lifts all boats but, the median wage earner is falling further and further behind.
“Real” inflation-adjusted median wages declined in 2007, 2009, 2011, 2012, 2013, 2014, and 2015.
ORIGINAL SOURCE: Fallacy of Wage Growth and a Housing "Shortage" in Pictures by Mike “Mish” Shedlock at The Maven on 3/20/18