On Mar 23, 2007, at 1:11 PM, Jason wrote:
> I don't understand why everyone is so down on home ownership. There
> is a housing crisis in Ireland at the minute because of vastly
> inflated house values.
They're not unrelated. If you've got a society full of people chasing homeownership and an accommodating financial system, then prices are going to rise, and you will create a constituency for ever-rising prices and a consciousness that views that as a good thing. Why is it a good thing when the price of shelter rises at a pace faster than the rise in average incomes?
Here in the U.S., the ratio of average house prices to average incomes hit a record in early 2006. They've come off the peaks, but not by much. Which is the good news here?
AVERAGE HOUSE PRICE, RATIO TO AVERAGE INCOME (medians, first quarter)
new existing 1968 3.02 1.99 1970 2.73 2.02 1980 3.72 2.46 1990 4.19 2.04 2000 3.89 2.02 2006 4.91 2.65
new: Census Bureau existing: National Association of Realtors