Barry Ritholtz at The Big Picture had this excellent chart earlier this afternoon that clearly gives a 30,000 foot view of the housing market. I’ve shown a similar chart in comparison to annual inflation, but this also provides some perspective in terms of median household income and CPI for rent. As you can clearly see, house prices are STILL more expensive that any other time in recent history:
Source: The Big Picture
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.