I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
Tuesday, February 5, 2013
Exponential Trend Failure of the Day
Click to enlarge.
Does this mean that the new homes of the future won't all come with wall-to-wall granite flooring? Shocked! Shocked I tell you!
When you look at the median sales price divided by disposable personal income a very humble picture is present: even at its low point, median sales price of new houses are 6 times that of disposable personal income. So, even when the median new house price is cheap, it is still relatively expensive on a per capita basis.
The per capita American would need to save 3 times their disposable income to put down as downpayment just to buy the house with a mortgage that is 3 times their income. And consider that the personal saving rate just shot up to 6.5%! Is that even a good sign?
When you look at the median sales price divided by disposable personal income a very humble picture is present: even at its low point, median sales price of new houses are 6 times that of disposable personal income. So, even when the median new house price is cheap, it is still relatively expensive on a per capita basis.
ReplyDeleteThe per capita American would need to save 3 times their disposable income to put down as downpayment just to buy the house with a mortgage that is 3 times their income. And consider that the personal saving rate just shot up to 6.5%! Is that even a good sign?
Luke Smith,
ReplyDeleteI think the "per capita American" is facing enormous headwinds over the long-term. Sigh.