10 sats \ 4 replies \ @Undisciplined 26 Mar 2023 \ on: U.S. home prices are the most unaffordable they've been in nearly 100 years bitcoin
Home price to income ratio is not quite the right metric, since most people don't buy homes outright. Importantly, it misses the role of interest rates.
The ratio you would want is new mortgage payments to income. That metric would show housing continuing to get more expensive, rather than the slight decline in the graphs. The rise in interest rates has more than offset the decline in prices.
ππis there a chart you know of for this?
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No. It might be part of the calculation when they do housing cost inflation, but I'm not sure.
You could get a back of the envelope number, by taking the ratio of twice the current prices to the prices prior to interest rate increases, since mortgage rates have roughly doubled.
We've been thinking about moving, but even a substantially smaller house in a less expensive area would come with a much higher monthly payment.
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There's always a silver lining
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