Do You Know Who Owns Your Debt?

Re:Do You Know Who Owns Your Debt? by sokoloff on Saturday November 16, 2019 @02:35PM (#21554461)

> In 1970 about 1 year of earnings could buy a house. Today it takes 4 years salary.

That 1970 ratio seems wildly low compared to the data I found. Historical ratios seem to be 3-4x, with periods in the 1950s, mid-2000s, and perhaps soon [but not yet] of 4.5-5x. Housing seems slightly (~5%) cheaper now than in the 1950s and about 30% more expensive than the 1970s based on this ratio calculation.

https://www.longtermtrends.net/home-price-median-annual-inco...

House purchase prices were lower in 1970 in part because mortgage rates (and therefore housing monthly payments per $100K borrowed) were dramatically higher.

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Re:Do You Know Who Owns Your Debt? by throwaway35784 on Saturday November 16, 2019 @05:03PM (#21555264)

That doesn't mesh with housing prices increasing while salaries have remained flat. The 7x increase in price I mentioned above was inflation adjusted, so your 2.6% cagr was above inflation.

https://www.cnbc.com/2017/06/23/how-much-housing-prices-have...

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Re:Do You Know Who Owns Your Debt? by sokoloff on Sunday November 17, 2019 @06:08AM (#21557418)

You asked me to chart house prices vs income. I did and that was the first data source I found.

I shared it because it didn’t mesh with what you were saying.

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