[tebbers]

I recently saw a graph of the average monthly mortgage payment in the UK (a country where house prices have rocketed in the last 30 years). The average monthly mortgage payment has basically been flat over the last 30 years so I think your point is absolutely correct - affordability on a monthly basis hasn't budged.

[Bombthecat]

But the house could be bought quicker with bonuses from work for example.

Those extra down payments are worthless now..

[nemo44x]

Possibly but would bonuses be adjusted too?

I do think the down payment is more difficult for many people today. The solution to this was to allow less than 20% down. But then the borrower has to pay PMI until they have 20% equity. There are tax rebates for first time buyers too.

People need more discipline in saving and investing and looking for smaller places in areas with less demand. Get into the market and build equity and scale up over time.

[threentaway]

In major cities in the US it absolutely has, even given the decreased interest rate.

[nemo44x]

Right - cities have been “revitalized” which has driven demand. Values have stagnated in other places like many suburbs.

I think the main issue with housing prices is some people can’t afford to live where they want to live. And there’s some legitimacy there as people don’t want a long commute for various good reasons. But it boils down to people not being able to finance the lifestyle they want. Hence gentrification where those with limited means move into areas currently populated by people with even less means. And of course that has its own opponents who also generally oppose new development oddly enough.

Maybe remote work will loosen the demand to live in a handful of expensive cities?