Wednesday, May 25, 2016

5 Reasons Owning a House Is Increasingly Unaffordable

http://www.msn.com/en-us/money/realestate/5-reasons-owning-a-house-is-increasingly-unaffordable/ar-BBtqq37#page=1

I hesitated publishing this post, however its just another perspective.  I really found the price cost of regulation numbers alarming.
  1. Wage Growth vs. Home Price Growth
    1. Home prices in the United States went up on average between 4 and 5% in 2015, and between 6 and 7% in 2014. Compare that to average wage growth statistics, which indicate only 2 to 3% average increases in both 2015 and 2014
  2. Wage Growth vs. Stock Market Performance
  3. The Cost of Regulations
    1. A recent report showed that, on average, government regulations add over $84,000 to the final price of a new single-family home....April 2011 study in which the total calculated was just over $65,000, shows nearly a 30% increase in new home costs due to regulations over the past five years.
  4. Millennials and Student Debt
    1. many millennials watched their parents struggle through the housing market turmoil that began in 2008, and have emerged more cautious about home buying. 
  5. Investors Moving the Market

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