I was feverishly trying to find a graph of inflation adjusted wages to home prices yesterday, but wasn’t able to find a good graph. Was going through the Wall Street Journal today, and what do you know, one of the best yet..
I often find it very hard to explain these concepts to people using words or tables, it just doesn’t ‘click’. But when you take a look at a chart like this, it’s hard not to understand. The fact is, wages really haven’t risen substantially, and neither has rent. Population has not significant increased in the past five years, which means it’s highly unlikely there is a true supply issue.
Here is a link to the WSJ article, I didn’t particularly care for it, but since I used the graph, I might as well provide the link back..