| | | In retrospect, the housing prices led wages, not the other way around, but that's fine. My wife, who is a retired CPA and interested in such things, thinks that the largest jump in housing prices around that period occurred after the government ordered the banks to consider [also] the wife’s salary while calculating the size of the mortgage a family would be eligible to receive.
This may not be related to average wages (and your observation may be correct), but it does explain a large part of the increase in housing prices. Or, you can turn this around - that - it may explain RE price stagnation *before* that order was issued.
At any rate, the prices in the late 70’s - early 80’s seemed very reasonable. Let’s put it this way - even if you financed 100%, in most cases the rentals could pay all the costs - plus, “normally”, generate some cash flow. |
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