In 1990 the “Misery Index” might have hit peak miserable, but there was something that was not a cause for despair: house affordability. In mid-1990, the average house cost $125,440, a mere 3.2 times the average household’s income of $39,796. Now, the average house costs $977,158, 8.2 times the average household’s income of $119,474. Smaller mortgages were more affordable mortgages, even though mortgage interest rates were higher in 1990, Goodall said. “Higher urban land prices led to higher house prices without increasing the incentive to build dwellings,” Stephens said.

Source: Stuff October 29, 2022 23:56 UTC