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this post was submitted on 22 Feb 2024
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The problem in that equation isnt the cost of housing, its the low wage growth.
https://usafacts.org/data-projects/housing-vs-wages
It doesn't really matter which side is out of whack. Housing is unaffordable.
Continuing with the high interest comment that sparked this thread, back then a 10.5% interest mortgage in a typical house was 45% of median income and in 2023 a 6.5% interest mortgage was 53%
If mortgages were still 10.5% in 2023 housing would be 78% of median income.
It surely does matter if it is to be changed. But if you just want to complain, sure its irrelevant.