[quote=utcsox]
If the rent is increasing at the rate twice as fast as the average wage growth and rent is a significant part of household’s budget, how in the world this has not already cut into disposable income of average household?How in the world the situation is not dire?[/quote]

It will resolve itself one way or another. Either rents will stop rising at a faster rate or wages will catch up. Two exponential curves run away from each other pretty fast so it won’t stay this way for long.