If the blue exponential trend line (2.1% annual growth rate) represents a delusional long-term prosperity belief, then what does the orange exponential trend line (14.4% annual growth rate) represent?
Here is a hint.
October 29, 2014
Rents are soaring -- and so are evictions
Rents have risen 7% in the past year, while incomes have inched just 1.8% higher -- making it that much harder for people to afford their housing payments. In fact, the average renter now spends 30% of their income on rent, up from a longtime average of about 25%, according to Zillow.
If people can't afford to rent, then how can they afford to save up the money to buy a house?
St. Louis Fed: Custom Chart