[quote=FlyerInHi]Well, I think that American real estate was cheap (in relation to wages) before globalization. Now we have wealth from around the world chasing glamour cities.
London is the best example. The run up in prices benefited a small minority of Brits. But local people cannot afford London anymore on local wages (not if they are moving with nothing but a job from Manchester).
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I agree housing in the US is cheap for what you get. Even in San Diego. I come from the UK, and the houses are tiny.
I would also say that people expectations change with rising prices. When I looked at living in London I did not expect a Single family home, or even a terraced house. My expectation was a apartment, or even a room. And I was willing to pay a lot for that room. Because it was ‘London’.
My takeaway from the OP’s link is that San Diego has had relatively small increases in Rent and House prices compared to other cities. I would LOVE it if Rich did an analysis of SF housing similar to his San Diego ‘Shambling Towards Affordability’. My feeling is that SF is now well beyond even the last bubble.
I would query the use of average wage. We know there is massive inequality in the USA. I certainly can’t afford a house in Birdrock, but there are plenty of lawyers and doctors that can. Starting Doctors wages (in some specialities) are increasing at 10% per year.
