The Death of an American Dream?

Why has housing become so unaffordable?

Housing affordability rates

National Insights

  • Median home prices have increased at four times the rate of household incomes since 1960, leading to imbalanced price-to-income ratios in most major metropolitan areas.
  • Nationwide, rents have increased at twice the rate of household incomes since 1960, making saving for a down payment increasingly difficult.
  • A healthy price-to-income ratio is 2.6 (in years), but the nationwide price-to-income ratio hasn’t been healthy since the late 1990s.
  • Only 16 out of the 100 most populated cities in the United States are below a 2.6 price-to-income ratio in 2019.

Price-to-income ratio

price to income ratio
price to income ratio by U.S. city 2019

Regional Insight: The West

Regional Insight: The Northeast

Regional Insight: The South

Regional Insight: The Midwest

Conclusion

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MBA Candidate at NYU Stern School of Business | Brand Marketer living in Brooklyn, NY

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Stephen Cunningham

Stephen Cunningham

MBA Candidate at NYU Stern School of Business | Brand Marketer living in Brooklyn, NY

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