“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 dirt cheap. If you think it’s nearly impossible for many 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.
For for those worried that the “petrodollar” is losing its dominance, it would be in their best interest to continue buying up housing in the United States, as any dollar collapse will only help American house price to income multiples converge with the rest of the world.
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, which is by far the lowest when compared to all other developed nations. Look at the table below for some context. For a list of the individual cities within the United States, scroll down past this first chart.
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For a more granular view from within the U.S., look at the expanded table immediately below, which ranks 102 U.S. cities by price to household income ratios in the Western hemisphere. For instance, in Indianapolis, IN, the typical mortgage payment equals 16.6% of the mean household income. While the media focus on the growing unaffordability, we should keep things in perspective. There are dozens of cities in the U.S. that still offer prospective home buyers and investors with plenty opportunities to buy. With rents relentlessly rising, it still makes sense for people in many areas of the country to purchase rather than rent.
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Thanks for another highlight of the housing/rental market and its continued case for owning.
Dovetailing on the thesis of this website, Raoul Pal and guest breakdown the need for heightened global liquidity & the increasing demand for US debt. Further validation of Stones thesis on housing via the backdrop of whats driving the demand of US dollars internationally
https://www.youtube.com/watch?v=UY4ry_qGXGk
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Eat real food.