“Where the American Dream Goes to Die”: Changes in House Prices, Rents, and Incomes since 1960 by Region & Metro

by Wolf Richter • Jul 12, 2019

How out-of-whack is the discrepancy in growth between incomes, rents, and house prices?

“Where the American Dream Goes to Die”: Changes in House Prices, Rents, and Incomes since 1960 by Region & Metro
by Wolf Richter • Jul 12, 2019 • 131 Comments • Email to a friend
How out-of-whack is the discrepancy in growth between incomes, rents, and house prices?
The “San Francisco Housing Crisis,” as it’s called on a daily basis, is an extreme. But housing costs in major urban areas in the US have been eating up more and more of household incomes, as house prices and rents have soared and as incomes have crept up painfully slowly. In many cities, not just San Francisco, this condition is now called a “housing crisis” where families with median incomes can no longer afford to rent or buy adequate housing, or where too much of their income is spent on housing, with not enough left over for other things. They have no savings, they barely make it to the next paycheck, and they can’t help the local economy because housing saps their spending power.

Just how out-of-whack this discrepancy between income versus rents and house prices has become over the years is depicted in a new study with long-term charts, released by the research department of Clever Real Estate. Based on Census data going back to 1960 for median household incomes, median gross rents per month, and median house prices, all adjusted for inflation, it shows that nationally, incomes since 1960 have risen just 29%, while rents have risen 72%, and house prices have soared 121%:

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But the national values above reflect everything thrown into one bucket, from the more affordable areas to the biggest housing bubbles. So we will separate them out by region and metro – and there are stunning differences.

All values in the charts are indexed to 1960. The charts only include data for the depicted years: 1960, 1970, 1980, 1990, 2000, 2008, 2010, and 2017. The data for the years in between those years are not included. For example, if in one metro, the housing bust bottomed out in 2012, the low point falls between the data points of 2010 and 2017 and is not depicted. But you get the idea.

The West: house prices & rents v. household incomes.

In the West — a vast diverse region that spans Alaska, Arizona, California, Colorado, Hawaii, Montana, New Mexico, Oregon, Utah, Washington, and Wyoming — the median house price, adjusted for inflation, soared 195% since 1960. And rents, adjusted for inflation rose 72%. But household incomes adjusted for inflation ticked up only 26%.

The growth rate (vertical axis) is on a different scale in the charts. For example at the chart above it tops out at 150% growth from 1960; in the chart below, it tops out at 200% growth from 1960; in one chart further down, it tops out at 550% (yup, San Francisco):

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To dissect the changes in house prices and incomes in the West, the study by Clever Real Estate separates out different metro areas. For example, in Seattle and Denver, household incomes, adjusted for inflation, rose in near-lockstep 56% since 1960, while house prices in Denver soared 239%, and in Seattle 286%:

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The Rest Of The Story Below:

“Where the American Dream Goes to Die”: Changes in House Prices, Rents, and Incomes since 1960 by Region & Metro

Proof Of The Magic Wand, Restructuring Process Has Begun

Get economic collapse news throughout the day visit http://x22report.com
Report date: 07.11.2019

The stock market has not hit an all time high, it hit 27000 points. Don Jr tweeted out that the MSM was reporting back in 2016 that if Trump was elected the market would collapse, who has the magic wand. The Fed has announced a policy shift a restructuring on the approach to how they gauge the economy. It has begun.

All source links to the report can be found on the x22report.com site.

Bidding wars turning quiet in metro Denver housing market

By ALDO SVALDI | asvaldi@denverpost.com | The Denver Post
PUBLISHED: July 11, 2019

Multiple offers are harder to come by as inventory rises

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The days when a home in metro Denver would list on the market and set off a feeding frenzy that brought in multiple offers are fading.

While lower-priced properties in good shape can still garner stronger interest, a declining share of homes receives multiple offers, according to statistics from Seattle-based real estate brokerage Redfin.

Redfin tracks the number of offers received on transactions where it represents the buyers. A year ago in June, half of all sales in metro Denver came with multiple offers. But at the start of this year, the ratio was down to one in five.

And in June it was down to 12.3 percent, or around one in eight homes sold. That is on par with the 12.2 percent rate seen nationally.

“Bidding wars are few and far between this season. They are reserved for homes that are priced relatively low and are in good shape or homes in hot areas that are priced correctly,” said Andy Potarf, a Redfin senior agent in Denver.

That partly reflects the more abundant choices that buyers have. At the end of June, there were 9,520 homes listed for sale in metro Denver, up 28 percent from a year earlier and the highest inventory available since October 2013, according to the Denver Metro Association of Realtors.

And it looks like there may be fewer buyers in the market. Another survey Redfin conducts of where visitors to its website search shows metro Denver home shoppers are increasingly looking to buy outside the area, in places like Colorado Springs and Seattle, and that fewer people outside metro Denver are looking to buy a home here.

But lower interest rates do have the potential to boost demand and competition, especially in the most affordable neighborhoods, notes Redfin chief economist Daryl Fairweather.

“At Redfin, we’ve been seeing increases in the numbers of homebuyers starting their searches and going on home tours following the latest mortgage rate drops,” Fairweather said in the report.

It is also important for sellers to put the right bait on the hook from the start. Another Redfin study from May found that a home that starts with a hundred views on its first day on the market only gets 17 views on average a month in.

After a price cut, the number of views shoots up to 29. But that bump only lasts a day, before views quickly drop back down to 18 a day.

Sellers can’t price their homes above the most recent sales in their neighborhood and then sit back and wait for a bidding war to start, Potarf said.

“Homes have to be upgraded and priced competitively or maybe even slightly below market to garner more attention,” he said.

Bidding wars turning quiet in metro Denver housing market

The Storm Has Arrived

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>>6954435
Just because the ‘public’ is unaware of something, does not mean ‘nothing’ is happening.
MUELLER hearing a tactic meant to delay (H) report?
(H) report release necessary prior to [C]omey release?
(H) + [C] = D
D = the start of the mass awakening (WH, ABCs, State, Foreign, ……)
Post D comes many I’s.
When BLACKMAIL no longer holds due to LOSS OF SENIOR LEVEL KEY GOV POSITIONS AND 11th HOUR TESTIMONY…………those previously protected become prey.
HUNTERS BECOME THE HUNTED.
GOD WINS.
Q

The Entrepreneur’s Dream Has Quickly Turned Into A Nightmare

July 3rd, 2019 by Ben Jones

A report from the Denver Post in Colorado. “Listings continued to flow into metro Denver’s housing market last month, according to the Denver Metro Association of Realtors. Despite lower borrowing costs, buyers fell short when it came to absorbing the new inventory, even for the most affordable tier of homes, which usually see rock-solid demand.”

“Buyers purchased 5,234 homes and condos in metro Denver last month, a decline of 14.31 percent from May and 14.34 percent from June of last year, according to the DMAR counts. What has been the strongest segments of the market for demand, homes and condos priced below $500,000, experienced a 13.5 percent monthly drop in sales.”

“The number of homes and condos available for sale in metro Denver at the end of June was 9,520, an increase of 7.1 percent from May and up 28 percent from June 2018. Metro Denver hasn’t had so many homes available for sale since October 2013, noted Jill Schafer, head of DMAR’s market trends committee.”

Access the housing report here.

America’s Concealed Crisis: Fifty Years of Economic Decline, 1969 to 2019

By Charles Hugh Smith www.oftwominds.com

If we consider the long term, it’s clear America’s economy and society have been declining for the average household for 50 years.

What if the “prosperity” of the past 50 years is mostly a statistical mirage for the bottom 80% of households? What if whatever real gains (adjusted for real-world loss of purchasing power) accrued only to the top of the wealth-power pyramid, those closest to financial and political power? What if the U.S. economy and society shifted from “everybody wins” to “winner takes all” or at best, :winner take most”?

These are not “what if”, they’re reality. The working class, which as I have recently noted, now comprises the entire working populace other than the upper-middle class Misplaced Pride: Most of the “Middle Class” Is Actually Working Class

(June 14, 2019), has lost ground over the past 50 years, from 1969 to the present.

The keys to understanding the concealed crisis of decline are purchasing power relative to wages/earnings–how many goods and services can wages buy? For the average American household, wages have risen modestly while the purchasing power of those wages has plummeted.

Furthermore, the quality of goods and services has in many cases declined sharply, so that even if prices have dropped, what you get for your money has fallen even further, effectively reducing the purchasing power of your wages.

Case in point: appliances were once designed and built to last a generation or longer. Refrigerators, washers and dryers lasted for decades. Now the average appliance fails within a few years, and the electronic board–costing roughly a third of the entire appliance price–fails and must be replaced. With labor, the cost of the repair is so high, consumers often send the almost-new appliance to the landfill and buy a new (and soon to fail) appliance.

Net-net, low quality reduces purchasing power even if price has declined.

Then there’s the big-ticket items: rent, housing, college, healthcare. Anecdotally, I’ve been told a young engineer in Silicon Valley could earn $20,000 a year and rent a modest apartment for $200. Now the young engineer makes $100,000 but rent for the modest flat is $2,500 per month: wages rose five-fold but rent rose 12-fold.

This is a staggering loss of purchasing power.

As for college, tens of millions of students completed their university training with zero debt–student loan debt as we understand it today simply didn’t exist because it was unnecessary.

The scarcity value of that college diploma has fallen precipitously over the decades, rendering most degrees that aren’t part of artificial scarcity schemes essentially valueless.

As for healthcare: we now have $100,000 operations that work miracles on one side and people being bankrupted by costs on the other, and tens of thousands dying of opioid drugs promoted by the status quo as “safe” and non-addictive. Where metabolic disorders (lifestyle diseases such as diabesity) were once a relative rarity, now up to a third of the entire population is at risk of chronic lifestyle diseases that are difficult and costly to manage–but oh so profitable to those delivering the meds and care.

Bottom line: how much housing, higher education and well-being does the average wage buy now compared to decades past? Not much. The statistics are bleak: wages are basically unchanged from the high water mark 50 years ago, which coincidentally was also the high water mark of U.S. energy production until very recently. Adjusted for purchasing power and quality, the average paycheck buys far less than it did 50 years ago.

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Wages’ share of the national income has plummeted since the last secular expansion of wages in the Internet boom of the late 1990s

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The average households’ ownership of productive capital, and thus of financial security, has declined. There’s fewer assets within reach and those that are in reach have been reduced to a casino of booms and busts that wipes out all but the most agile gamblers.

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If we consider the long term (la longue duree), it’s clear America’s economy and society have been declining for the average household for 50 years. Nobody wants to admit this because it’s politically inconvenient, to say the least. What do we make of a society in which only the top 5% have prospered in terms of their earnings buying more goods and services?

Meanwhile, everyone else has compensated for the sharp decline in purchasing power by going ever deeper into debt while the nation has decayed into a landfill economy.

Trade Deal In The Works, Time To Get Rid Of Federal Taxes, Boom

Report date: 06.30.2019

Trump and Xi meet at the G20 summit, trade talks will resume. Trump will not raise tariffs, tariffs will be dropped once China keeps its promises. Boom, the transition is moving forward. Trump making deals with many leaders, the transition is coming close to competition. There is now a call to remove the federal withholding tax, this is part of the plan and it was dripped out to start the conversation.

History Was Just Made, Watch Everything Fall Into Place, Panic Everywhere

[DS] believe that when they are arrested, Trump will lose the 2020 election and they will be pardoned. Nunes cautious about Mueller testifying, but says all questions need to be answered. JW via testimony shows Obama’s DOJ granted immunity to [HRC] lawyer. Trump and Putin get along at the G20 meeting. Trump says no to climate change accord. Trump made history, meets Kim at the DMZ and walks into NK. This plan is complete, blacksites removed, [DS] no control. Everything is falling into place. Next Iran, and we are getting closer to a peace deal.

Kevin Shipp – Arm Yourself, Dark Left Violence is Coming

Greg Hunter
Published on Apr 27, 2019

Former CIA Officer and whistleblower Kevin Shipp says, “The danger for ‘We the People’ is the Dark Left and Dark Left violence. As these indictments begin to come out, and as the players are called out, the violence on what I call the Dark Left, the violence is going to increase to the point where it’s going to be very, very bad. There are going to be beatings and probably shootings, and shooting at police. . . . There is going to be a lot of violence coming from the Left in the next year or two. This is one of the reasons you need to exercise your 2nd Amendment rights . . . because of what the Left is going to do with these findings and what is going to be the death knell for the Democrat Party and the death knell for taking over our Constitution and culture. They will exponentially bring up their violence, and Americans need to arm themselves and protect themselves against that.”

Join Greg Hunter as he goes One-on-One with CIA whistleblower Kevin Shipp, founder of the popular website ForTheLoveofFreedom.net.

Economic Messages Deciphered, Their Plan Stopped, New Economy Readied

It’s Time, Placeholders, Future Comms Set, [On The Ready], For Our Country

The Pain Of This New Economic Downturn Is Starting To Show Up All Over The Country

by Tyler Durden Wed, 06/26/2019

Authored by Michael Snyder via The Economic Collapse blog

It is going to take a miracle for the U.S. economy to pull out of this tailspin, because the economic numbers are really starting to deteriorate very rapidly now. On Tuesday we got some more new numbers, and they were just as bad as we thought they might be. But even before today’s numbers all of the data were telling us the exact same thing. The New York Fed’s Empire State manufacturing index just suffered the worst one month decline in U.S. history, Morgan Stanley’s Business Conditions Index just suffered the largest one month decline that we have ever seen, global trade numbers are the worst they have been since the last recession, and just last week I detailed the complete and utter “bloodbath” that we are witnessing in the U.S. trucking industry right now.

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o considering what we already knew, it shouldn’t have been a surprise that new home sales in the U.S. were down a whopping 7.8 percent during the month of May…

Sales of new U.S. homes slumped 7.8% in May, as sales plunged in the pricier Northeastern and Western markets.

The Commerce Department said Tuesday that new homes sold at a seasonally adjusted annual rate of 626,000 in May, down from 679,000 in April. During the first five months of the year, purchases of new homes have fallen 3.7% compared to the same period in 2018.

Those are absolutely horrible numbers, and this is precisely what a recession looks like.

On Tuesday we also learned that U.S. consumer confidence is rapidly declining…

Consumer confidence is on the decline.

The Conference Board’s Consumer Confidence Index tumbled to 121.5 in June, dropping from a downwardly revised reading of 131.3 in May and snapping three consecutive months of improvements.

June’s results missed consensus expectations for a reading of 131.0, according to Bloomberg-compiled data, and marked the lowest level in nearly two years.

Once again, this is precisely what we would expect to see during a recession.

And yet I continue to see some clueless mainstream media reports that insist that the U.S. economy is doing well. Apparently FedEx didn’t get that memo, because they lost nearly 2 billion dollars in the quarter ending May 31st…

In the fiscal fourth quarter, which ended May 31, FedEx reported a loss of $1.97 billion, compared with profit of $1.13 billion a year earlier.

FedEx blamed this horrible number on the ongoing global economic slowdown, and unfortunately things are not likely to get any better for them any time soon.

Many in the mainstream media continue to speak of “the next recession” as some future event, but when we get the final economic numbers many months from now we may discover that it had already started by now. In fact, one prominent economist recently stated that he believes that “we’re probably already in a recession”…

Gary Shilling, an economist and financial analyst who is credited with predicting several recessions over the past 40 years, thinks the U.S. is in a relatively mild slump.

“I think we’re probably already in a recession but I think it will probably be a run-of-the-mill affair, which means real GDP would decline 1.5% to 2%, not the 3.5% to 4% you had in the very serious recessions,” Shilling, president of economic and financial research firm A. Shilling & Co., said in a recent interview broadcast this week by Real Vision.

And even Federal Reserve Chair Jerome Powell is now admitting that our economic outlook has become “cloudier”. The following comes from ABC News…

Federal Reserve Chairman Jerome Powell said Tuesday the economic outlook has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates.

Speaking to the Council on Foreign Relations in New York, Powell said the Fed is now grappling with the question of whether those uncertainties will continue to weigh on the outlook and require action.

I find it very interesting that Powell chose the Council on Foreign Relations as the venue for this address. I think that tells us a lot about where Powell’s true loyalties are. The Council on Foreign Relations has dominated the political landscape in Washington for a long time, and this has been true no matter which political party has been in power.

Meanwhile, the global trade war continues to intensify, and over 300 companies are literally begging the Trump administration to find a way to end it…

More than 300 companies are talking to government officials in Washington this month about how detrimental the trade war between the U.S. and China has been and will be to their business.

Testifying in front of the Office of the U.S. Trade Representative, major U.S. companies including Best Buy, HP and Hallmark Cards are voicing concerns about how the additional tariffs that President Donald Trump threatened to slap on China would impact their businesses and cause them to lose business to foreign competitors.

Sadly, it isn’t likely that the trade war will end any time soon.

In fact, it is probably much more likely that a shooting war will start in the Middle East instead. And if that happens, our current economic problems will dramatically escalate.

The wheels are starting to come off, and the U.S. economy is beginning to spin out of control. Perhaps the Federal Reserve will be able to pull another rabbit out of the hat and pull off a miracle once again, but I doubt it. We haven’t seen conditions like this since the great financial crisis of 2008, and the remainder of 2019 threatens to be extremely “interesting” indeed.

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