Price has gone up, yes, but the cost has not if you compare price inflation and wage inflation. I have a video on my YouTube channel that shows the research...I'll have to find the link for you.
Funny enough, if you go back 30 years, take a 0 off the end of the price. Another 30 years before that, take another 0 off and so on...
In the early 90's in S. California, my current house would have sold for about $50K but is worth about $500K today. In the 1960's it would be about 5K. 1930's, about $500...and so on. It's not exact, of course, but it has rung true in many of the cases I've researched. Prices go up, but affordability goes with it because of wage inflation...
I dug up the link...
Wages haven't gone up 10x since the early '90s.
No, but wages have gone up in a ratio fast enough to maintain a payment on a loan for a house that has gone up 10x.
This still supports my original assertion that it's an artificially high price though. This is due to artificially suppressed interest rates to ensure price inflation, which is part of the conflict of interest the government has holding a monopoly over currency. They do this because it devalues the dollars that they owe money in. As these prices climb, their revenues go up in nominal terms, but their debt obligations stay the same in those terms. Eventually even the low interest rates will run out of steam and people won't be able to make the payments on the huge loans. It will inevitably end catastrophically at some point. You can't run a pyramid scheme forever.
You are right...especially if the interest tied to the underlying debt is adjustable... Great convo!
This is factually inaccurate if you look at the average statistics... You may be referring to the statistics of the Top 10% or above who have experienced both the highest % wage increases, capital appreciation through real estate and equity appreciation through the stock market and unfortunately it has been all at the detriment of the people on the lowest rung of the economic ladder...