Cities with the highest house price-to-income ratios | Lifestyles
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One of the major economic developments in recent months has been rising concerns about inflation. While year-over-year wage growth in the United States reached its fastest rate in decades this year, the benefit of rising wages for most households has been limited by the price increases in many categories of consumers. The US Bureau of Labor Statistics has reported price increases of more than 5-6%, numbers well above usual levels. Recent increases in the CPI are mainly attributable to increases in the costs of energy, transportation, food and shelter.
The latter category tends to exert major pressure on household income. Housing is the single most important regular expense for most households, so the inability of wages to keep up with house prices can make housing costs even higher in real dollars. And over the past year and a half, house prices have skyrocketed, with the cost of homes sold in the United States rising more than 18% from a year ago.
While recent economic conditions have caused greater concern, the gap between the growth rates of incomes and house prices is not a new phenomenon. The growth rate of median income has remained below that of house prices for at least the past two decades. From 2000 to 2020, the median income in the United States increased 61%, from $ 41,990 to $ 67,521, while the median home price almost doubled, an increase of 96%, from 127,569 $ to $ 249,497, according to data from the US Census Bureau and Zillow.