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May 12, 2021
10:03:44am
Hotlanta Walk-on
All this talk about inflation has got me thinking about housing prices
I'm not talking about the absurd housing currently, this is more long-term.

We have seen how inflation historically averages at about ~2%, while house prices rise by an average of 4-6% yearly, and wage growth averages out to roughly 1% yearly.

With an increase in the buying power of an average family increasing by about 3% yearly, the average house gets 1-3% more expensive every year. How long can that keep up? It's an inevitability that houses will become too expensive for your average family. Whether 10 years, 30, or 60, eventually houses and their associated increase in prices leads to a time where an average family won't be able to buy a house.

What does the future of homeownership look like? With millions of young families not being able to buy homes, what happens when prices rise another 25%? another 50%? How will Gen Alpha buy their first house in 2045 when a starter home in AF costs $800k?
Hotlanta
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Hotlanta
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