Guest Post by Martin Armstrong
The US housing market has not been this unaffordable since 1984, a new study finds. Analysts at Black Knight analyzed home prices, income, and interest rates on a monthly basis going back to 1975 and found that the average mortgage today would cost $2,423 per month on a 30-year fixed with 20% down. This marks a 91% increase in housing costs over the past two years alone.
The $2,423 figure represents 38.3% of the median household income, despite home ownership costing only 24% of the median household income for the past 25 years. This study does not take into account that many do not put down the 20% downpayment due to rising closing costs, insurance costs, and taxes. The current 30-year fixed mortgage is around 7.23% at the time of this writing, marking a 20-year high. For housing affordability to reach 24% of the median income, the average household would need to earn 60% more or home prices would need to decline by 27%.
Home prices are at their highest level in 30 of the 50 largest metros. People are continuing to flee to more desirable areas for financial and political reasons, and with historically low inventory, prices will not decline any time soon in those areas.
Worse still, 344,000 US homeowners owe more than their home is worth, which is a 70% uptick from last year. In Florida, insurance rates alone are causing many longtime residents to flee. I will discuss that in more depth in another post. The housing crisis is in full swing, but this is by design. The globalists have said countless times that they want the world to become perpetual renters who own nothing. Never before has the average man had to go to battle with investment firms to own a piece of the American dream.
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The Cost of Home ownership in the US Spiked 91% in Two Years
Joe Biden: “I did that!”
It’s all part of depop and smart, 15-minute cities:
Because they’re going to be spraying pink goop.
Yes. Thought about it and forgot to mention yesterday. It’s a delay tactic to discourage people so more will get disgusted and sell out quickly. This is instead of getting money from insurance companies quickly and starting to rebuild.
To soak up the radiated nano aluminum chemtrail dust from the microwave weapon deployed by space force /starlink before they rebuild.
No. The value of the Dollar TANKED by 91%.
There’s a difference.
If you didn’t have $140, ooo years ago it’s the same as not having a million dollars now. If you made $5/hr years ago it’s the same as making $20/hr now. Same thing higher numbers.
One difference is corps are buying up and profiteering now raising prices when it used to be savvy local bankers and real estate investors on a lower level.
Adjusted for inflation the minimum wage would be 65$ per hour.
The perfect scams dreamed up by the leaches of finances.
Banks ‘loan’ you money to buy a house and insurance companies agree to cover certain damages if ever needed. You can’t buy the home without insurance of course and everyone fears not having insurance. Yes the murikan dream, where everyone other than the oligarchs, politicals and bankers, gets milked of their wealth equally.
Live’n the dream
The word “loan” implies that the bank had it before the contract.
They didn’t, they create it when they make the contract.
A contract that doesn’t have full disclosure is void.
Fractional reserve lending.
Like having one orange and being able to sell ten oranges.
Their risk is 10 taps on the keyboard for $1,000,000
And you pay double with interest, for 10 taps on the keyboard. For thirty years of labor.
And you pay insurance to protect their risk.
And if you don’t make a claim do you get a refund? Nope.
They own it until you pay it off, yet you pay the taxes and the maintenance and insurance, on their asset.
Yes i”m one of those anonymous, anonymouses, anonymice? Anonymi?
Is this the only site in the world where you don’t have to sign up to post?
Does that mean that I’m being recorded right off the bat?
“Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)
Truth is my sword.
I think there are two main reasons buyers are still buying homes (if possible): rents are also rising quickly and FOMO – fear of missing out.
Wait until the recession hits and those homes tank 89%. Holding a 7% Mortgage. Deja vu 2007-2008 all over again!
They won’t be able to sell for twenty years. Many will just walk away. That will be the time to buy.
It’s democrat-driven devaluation of the U.S. dollar, destructive regulations, harmful restrictions/fees, and impractical building requirements. By design, the democrat party continues to actively undermine our economy and quality of life.