https://www.propertyshark.com/Real-Estate-Reports/2016/09/08...
Not to mention the average household size (number of people) has been dropping...so the square foot per household member is up drastically...
Or as the article put it: Case-Shiller requires two transactions for the same house,” Lazzara said... It controls for the variability in the quality and size of the homes sold from year to year by measuring the change between houses that sold in one period with the prices of the same houses when they last changed owners. “The repeat sales mechanism is a way of adjusting for the mix of product so that you really are getting an apples-to-apples comparison,” Lazzara said.
Regardless, we don’t need a fancy index to observe how fucked the market is.
In 1987, mortgage rates were about 15%. To put that into perspective, a $100k 30 year fixed rate mortgage would cost you $1,543/mo at 18.45% and only $442/mo at 3.38%.
I only hope that rates going up will deflate the real estate prices but so far they don't appear to be budging
https://mleverything.substack.com/p/buying-a-home-in-the-us-...
Changing interest doesn't change how many people are willing to live in a location. Your monthly payment will just go to the bank instead.
Not sure why the cost per household member should matter all. I didn’t get a family size discount on my home.
You do though. The cost of kitchen for a couple without kids, and one for a family of 5 is roughly the same. You might have more square footage overall for house, with more people, but the construction costs are concentrated on the shared spaces like kitchens or even things like living living rooms where square footage will scale sub-linearly with the number of people in the household.