USA ECONOMY -
"House pricing is rising at a record rate." Reports Orla McCaffrey, writing for the Wall Street Journal.
And indeed, it is. According to the Federal Reserve Bank of Atlanta, the average American household would need 32.1% of it's income to pay the mortgage.
Due to inflation, The Wall Street Journal reports "Supercharged home prices have canceled out the impact of modestly high incomes over the past year."
The Atlanta Fed reports affordability by employing a three month average of median home prices from CoreLogic Inc.
The Atlanta Fed's calculation of the median home prices in 2021 were $342,350, up 23% from the previous year.
The median home income is now $67,031, up only 3%.
OPINION
As is so common among an inflationary environment, prices rise much faster than wages.
During times of extreme inflation, the ultrarich get richer and the middle class (as well as much of the upper class) becomes much poorer.
Today, this is a sad reality.
Al K. Scott
General Editor of the
The Portland Post
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Contributors:
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