Housing is becoming less and less affordable 🏚
The ratio of median annual salary to median house price has grown by several times over the past few decades. In 1984 the house sales price-to-income ratio stood at 3.49 but today it's 5.8 🫠
When housing costs exceed a significant portion of household income, families are forced to cut back on other essential expenditures, dampening consumer spending.
It was the expansion of the housing supply that helped drive US economic growth in the 20th century, while today's situation is slowing things down 📉
