During Covid, the price of real estate went up so much, that the increase of the 20% down payment, which is recommended in my country, is more than I can save in year. I'm saving 60% of my income and I'm in the top 20% income bracket.
This is why I’m wary whenever I see “top X% in the income bracket.” I think it’s misdirection, because if you can’t afford something, then you can’t afford it, regardless of how well off the statistics say you are. You can save for a down payment, and then interest rates and mortgage will obliterate you. So really, the scale for these things in terms of affordability starts somewhere beyond what you’re making - and most of the upper 20% I bet, and then extends onwards to the actual ruling/owner class.
So the metric we should use isn’t this. It’s something else.
I won’t speculate with the usual HN nonsense of armchair economists. I will say I remember Michael O’Church’s two ladder theory and I agree with it based on personal observations.
If you have cash savings, then you’re ideally positioned to take advantage of lower real estate prices without suffering (as much) from the impact of higher interest rates.
I'm actually not even eligible for a mortgage any more considering that interest rates around here are at 6,50%, which is more than the 30-year average.