Wage increases not keeping up with the rising cost of living has been plaguing the housing market for several years, but a new study of historical trends shows that this dilemma has been frustrating buyers for decades.
A report from Clever Real Estate shows that median home prices have surged 121 percent nationwide since 1960 while household income increased just 29 percent. Renters have also felt the pain of rising prices with a 72 percent increase since 1960.
Homes in the West have felt this problem more acutely as median home prices have risen 195 percent over the past five decades, compared to wages rising only 26 percent over the same time period.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.