[quote=barnaby33]Take 2000 prices, add in zero for inflation and you have reasonable prices in todays dollars. Salaries not going up? Prices must come down. I earn LESS now than I did then in real terms and so is most everyone else.
Josh
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Not only that, but defined benefit pension plans and 100% employer-paid health insurance plans are becoming obsolete over time. Additionally, healthcare costs, education, food, gas, etc. are all rising, which leaves LESS money for housing.
With fewer social safety nets and fewer, less-reliable employer-paid benefits, in addition to jobs being less dependable…there is much less money left over for housing.
The old 28/33% DTI ratios were calculated under much more favorable conditions. I’d say people should now spend no more than 20% of their income (maybe 25% max, for higher earners), in order to stay afloat.
