My concern was the skewing that can happen with using average--the average 401k is bad, but the median is worse.
Link.
I recall in 2016 that there was a report that came out about median house price to median income--in 1950, the ratio was 2x. But in 2015 it was 5.1x. And climbing. Can't find that report but did find this.
Link.
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Of course, even this is misleading, as we know this is wildly dependent on location--but going back to your point, it tends to "average" out as higher cost of living areas have higher income, and vice versa.
Yeah, wildly depends on location I agree.
Also comparing to many decades back I think doesnt tell a story. Remember, home buyers now are used to luxuries, homes were bare bones in the 1950s
1990 Median price was 100k Median income 30k
Today's homes with many more luxuries Median price 415k (depending on source) However, like you say, location matters.
Todays median income in 2023 $81,000
Then there is the other confusing factor, Median HOUSEHOLD income. Many decades back a lot of homes were one income homes. Now couples work, we tend to think both couple have to work to buy a home but the homes have more luxuries then ever. Meaning the couples spend more. The free market is always what the public will and can afford to spend. We we now have two income families buying larger homes, larger than the old standard of around 1400 sq ft, multiple bath rooms etc.
Example, Today Nassau County NY median Household income is $137,000 Good luck finding a good condition home for $550,000
Coastal area of Horry County SC (myrtle beach area) is less than half that at $60,000 You can find a new home for $250,000
This is a cool map, hold a pointer over any area for the stats. (not sure how it will work on a cell phone.
https://www.census.gov/library/visualizations/interactive/median-household-income.html
Not disagreeing with your post. I love stats, numbers and analyzing stuff but now I have to get dressed and cut the lawn *LOL*
Yeah, I cut my own, why? I turn it into an exercise session and get paid for it at the same time.
