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Rent Increase or Purchasing Power Decline?


               
2014 Apr 16, 3:53am   667 views  0 comments

by John Bailo   follow (0)  

Seems to me the underlying trend is not increasing house prices so much as decreasing purchasing power of the dollar.

What we see here is

2012 1 Year Change 3 Year Change
Median Gross Rent $884 -0.23% -1.23%

http://www.deptofnumbers.com/rent/us/

So gross rent has gone down from the peak of 2008.

Yet, rent is taking a higher proportion of income.

US Median Annual Rent as a Fraction of Median Household Income

2012 1 Year Change 3 Year Change
US Median Annual Rent as Fraction of Median Household Income 20.65% -0.05% +0.53%

So, the absolute numbers for rent are down, but the value of our jobs, has become less than those declines.

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