Its basically avg house price divided by avg income, so it shows how many years it takes to buy a house outright
California median house payment doubles since 2020, limiting pre-tax income to just 39%
For comparison, here's the same chart for Texas, a state that many Californians have been moving to.
While it has risen quickly, house payments currently take 35.5% of the median income in Texas.
Which state do you want to see us chart next?
Follow us @KobeissiLetter for more. pic.twitter.com/VRq5yq71ZI
— The Kobeissi Letter (@KobeissiLetter) July 12, 2023
New mortgage math is brutal.
Say you buy a $1m house with $200k down at a 7% rate ($800k mortgage).
Over the first three years you pay $193k ($5,322/mo.)
After those $193k of payments your $800k mortgage is now at $774.5k.
You paid $166k in interest, $25.5k in principle.
— Austen Allred (@Austen) July 13, 2023
Simply Unafforable! The Fed And Death Of The Starter Home Market (Fed Pause Will Not Help Much)https://t.co/W87j9JM0gZ pic.twitter.com/5nIqPEEHHR
— Citizen Watch Report (@Citizenwatchrep) June 8, 2023
h/t caseyy89