“Good” news for renters and single-family property owners
Cheer up, the US is still the land of opportunity
Many observers may think American residential real estate prices are out of control, but when we compare domestic home prices to the rest of the world, house values here in the United States are relatively dirt cheap. If you think it’s nearly impossible for many people to climb up the property ladder, just ask other people around the world what they think when they price their local homes in their local currencies and with their buying power based on local wages.
According to the most up to date information from Numbeo regarding home prices, the United States still offers its residents the biggest bang for the buck when compared to their household incomes. In fact, the nationwide price/household income multiple for the US stands at 4.1x, which according to Numbeo, is by far the lowest when compared to all other developed nations. For instance, in Indianapolis, IN, the typical mortgage payment equals 13.9% of the mean household income. While the media focus on all the unaffordable places, we should keep things in perspective.
For a more granular view from within the U.S., look at the expanded table immediately below, which ranks 93 American cities by price to household income ratios. There are a few dozen cities in this list that still offer prospective home buyers and investors with plenty of opportunities to buy. With rents relentlessly rising, it still makes sense for people in many areas of the country to purchase rather than rent.
(Click column headers to sort)
Soylent Green is here. In that movie people were living in cars.