A frequent topic on the radio focuses on the difficult to define topic of “affordable housing.” This is really subjective and terribly idiosyncratic to the local level which makes it difficult to discuss. I provide a look at index values at the national level, just to see the course of these over time. I use nominal disposable per capita income and the FHFA price index, with all values indexed to 100 in January of 1991.
There is a remarkable consistency to the track of the two data series over time with the home price data showing the clear signs of the housing boom and eventual bust. In addition the personal income data shows a spike in the monthly income series, and a drastic drop due to COVID. This data only confirms how difficult it is to evaluate the issue ofRead More »