Housing prices surging 13 times faster than wages

Fox News ^ | 26 March 2015

[Lorianne]

Video 1:24

[cherry]

what the price of a new car?.....or a new truck?...many people don’t make that in a year of working full time...

[logi_cal869]

I’ve been saying this for years (long b4 2008) to dumb looks and rude remarks by those that profit from RE.

I am obliged to remark a rhetorical

“DUH”

and

“BOHICA”

[SamAdams76]

Average income 1959 = $5,019
Average cost of home 1959 = 12,400

Average income 2015 = $51,939
Average cost of home 2015 = $188,900

So basically a home was about 2 1/2 times your annual income in 1959 and about 3 1/2 times your annual income today.

A little more expensive to buy a home these days but consider that houses are much bigger and have many more features homes didn't typically have in 1959, like central AC and multiple bathrooms.

That sort of puts the lie to the contention that home prices are rising 13x faster than wages.

Besides, if that was true, nobody would be able to buy houses today.

[GeronL]

Bump, they are not comparing similar houses. I wonder if they are comparing similar dollars? Thr US dollar has lost a lot of value over the decades

[Mears]

I’m in Eastern MA——I haven’t seen a $188,900 house in my area for years.

.

[SamAdams76]

Well this is your lucky day. Here you go.

[mrsmith]

Also, the ‘average’ could reflect that fewer middle and lower income people are buying homes.

[Mears]

Wow !!! I was quite surprised....until I read all of the details.

Eye opening..and buyer beware.

.

[roadcat]

I’m in Eastern MA——I haven’t seen a $188,900 house in my area for years.

Inner SF Bay Area, CA - can't touch a home under $500,000. In the city it's worse.

[roadcat]

http://www.sfgate.com/technology/businessinsider/article/This-San-Francisco-home-in-a-deteriorative-6161821.php

[jcon40]

“I haven’t seen a $188,900 house in my area for years.”

Get a Bank of America appraisal on your house.

[familyop]

"I’ve been saying this for years (long b4 2008) to dumb looks and rude remarks by those that profit from RE."

Give it another year or two. Those facial expressions and comments might be gone.

[kvanbrunt2]

absolutely it’s not like your comparing the price of a beer over the same time. look at what our tv’s are today. my house ws built around 1850 — had fireplaces for heat then later gas light installed. today’s houses being built in my neighborhood are 25% bigger with garages and free taxes. and a 777% bigger price tag.

[who_would_fardels_bear]

But the 13X figure just HAS to be true.

After all, they're not building any more land.

At least that's what the nice man from the real estate agency told me and he was well-dressed and clean cut.

So he had to be telling me the truth.

[SamAdams76]

Actually they are “building” more land. For example, millions of homes are being built in the Southwestern desert where nobody would consider living just a century ago.

[Mears]

My God,what an ugly,trashy little house.

Just curious——is there a view behind it? I thought I glimpsed one in one of the pics.

Whoever sold it must be grinning from ear to ear.

.

[bert]

When the Bigg’un shakes San Fran, the loss in housing value will exceed the GDP of Russia

[roadcat]

In the article, there are a series of pictures of the inside with a couple pics looking out towards the front. The answer for the high cost of the land is apparent, it faces the ocean. Those who live here know that the street lies below a sand berm that supports the Great Highway road that runs parallel to the sandy beach. If you build high enough (as in two or more stories), you can see out over the Great Highway (which is a couple lanes in each direction) and see the beach and ocean. There are multiple crossings to gain access to the wide sandy beach every block or two. Lots of recreational activities happen daily there, real popular. Also some nice small restaurants with outdoor tables on that street. The zoo is at one end, Golden Gate Park at the other end of the street, all within walking distance. It's the land that is valuable, not the house on it.

My son-in-law's sister owns a beachfront house in Huntington Beach facing the ocean. She's a lawyer and spent millions on it. She says its worth the cost just to be at the beach.

[Mears]

I figured it was a land and location thing.

I went through the pics and got a glimpse of what looked like a view.

Thanks for the information.

.