top of page

The Growing Gap: Home Prices vs. Income in the U.S.


Click the image above to watch the full video.


In this blog post, we'll delve into a historical perspective and examine how the growing disparity between home prices and individual incomes in the United States is shaping the housing market. It's a trend worth exploring, one that has significant implications for those looking to buy or invest in real estate.


A Historical Perspective

Let's take a step back to the 1960s. Back then, the average individual's income was nearly half of the average home price. Now, it's essential to note that interest rates at that time were significantly higher than they are today. However, what's truly interesting is not the specific numbers, but the long-term trend that emerges from this data.

Over the years, the trend has been clear: home prices in the United States have consistently appreciated at a much faster pace than the average individual's income. This widening gap suggests that homes are becoming increasingly unaffordable for the typical American.

Adding to this challenge is the fact that as a nation, we've been under building since 2009. This chronic housing shortage, combined with a lack of available inventory, exerts even more upward pressure on housing prices. In other words, the prognosis points toward further increases in home prices, while incomes may struggle to catch up.

The Opportunity Today

Now, if you're currently in the market for a home, there's some good news. Interest rates have experienced a decline in the past two to two and a half weeks. This shift in the interest rate landscape might offer you a unique opportunity to reevaluate your options in the current market.

As we head into the winter months, it's worth crunching the numbers and consulting with a real estate professional to see if your home buying goals align with the current market conditions. Don't underestimate the value of making a well-informed decision, especially when it comes to one of the most significant investments of your life.

I want to wish you all the best in your real estate endeavors. Remember, the path to homeownership may have its challenges, but with the right strategy and guidance, you can navigate it successfully. Thank you for tuning in, and may your real estate journey be filled with fruitful opportunities.


Your Bay Area Realtor, Deepak Arora.

コメント


CONTACT

408.242.5336

DRE #02179433

ADDRESS

Keller Williams Santa Clara

2520 Mission College Blvd #102

Santa Clara, CA 95054

Copyright ©2023. The Absolute Realty

Designed by Ryan Reen

CONTACT

408.242.5336

DRE #02179433

THE ABSOLUTE REALTY

Keller Williams Santa Clara

2520 Mission College Blvd #102

Santa Clara, CA 95054

Copyright © 2024. The Absolute Realty

Designed by Ryan Reen

Going Further For You

Work With Us

The Absolute Realty is dedicated to helping you with your buying, selling, or investment needs.

Image by Christopher Jolly
bottom of page