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Housing In The US Has Gotten Even More Unaffordable

unaffordable housing
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EDITOR'S NOTE: If you are wondering why housing has become “simply unaffordable” in the last year-plus, Confounded Interest says you can rest the blame on “BAD government policies.” The outlet explains that despite positive wage growth, inflation has actually decreased “REAL average hourly earnings growth is -2.0133%.” While this is happening, home prices are going up at the staggering rate of 14.12%. Due to all this, buying conditions for homes remain bad, and consumer sentiment is declining, at least partially, because of this. The government sees these numbers too and is itching to get involved, which Confounded Interest points out, is rarely a good thing. 

Housing in the US is getting “simply unaffordable.” And it has gotten far worse over the past year. Thanks to BAD government policies.

While wage growth is positive, inflation is sucking the life from consumers. REAL average hourly earnings growth is -2.0133%. Even worse, home prices are rising at a 14.12% pace in REAL terms. So, wages are losing to inflation and housing is pulling away from renters in terms of affordability.`

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Photo: Confounded Interest

So it is not surprising that the University of Michigan consumer survey for “Buying Conditions For Housing” remains below 100 (meaning that more people think buying conditions for housing are negative than positive). With the Case-Shiller National home price index growing at a 19.51% YoY pace, it is no wonder that consumers are getting scared of the housing market.

Photo: Confounded Interest

Yes, US inflation is at a 40-year high and the 30-year Treasury Inflation Protected (TIP) yields is at -0.424%. That says quite a bit about the pickle US consumers are in.

unaffordable housing

Photo: Confounded Interest

US consumer confidence overall has declined to the lowest level since just after the financial crisis and housing bubble burst of 2008-9.

unaffordable housing

Photo: Confounded Interest

Doctor, Doctor (Yellen), please don’t try to make housing more “affordable” which will result in housing being even LESS affordable.

But I do like how Biden took credit for lowering gasoline prices a little after his anti-energy policies drove up gasoline prices in the first place from $2.20 to $3.40 a gallon, a 55% price increase. Thanks for nothing, Joe!

unaffordable housing

Photo: Confounded Interest

And with Omicron raging (with few reported deaths), Anthony Fauci, President Biden’s top medical adviser, indicated support for making vaccinations a requirement for domestic fights.

More loss of personal freedom, more government control. We are truly addicted to gov.

Originally posted on Confounded Interest.

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