Houses have never been more or less affordable, depending on who you ask.
On the one hand, we can point to charts like this and say that the cost of servicing your debt, the biggest piece being housing, has never been lower.
BREAKING: This is an absolutely amazing chart of just released #Fed data. The percentage of earnings that US households are spending on debt payments has collapsed pic.twitter.com/ivjmasHMhQ
— Robert Burgess (@BobOnMarkets) July 7, 2021
On the other hand, we have charts like this which show that buying a home has never been more expensive.
So which is it? Are houses getting more or less affordable? Well, given that demand keeps outpacing supply, I’d have to go with more affordable. If “nobody” could afford to buy a house, prices wouldn’t be rising the way they are. An oversimplification, to be sure, but I think that’s what I’m going with.
Josh and I spoke about this on the newest edition of The Compound and Friends with Leanna Haakons, Doug Boneparth.
I hope everybody has a nice weekend.