[quote=temeculaguy]As are you and thank you for the kind words. I have come back more lately because the kids are looking to buy and I do see some similarities today to 2005. It’s the “freshly minted teacher” test. Not sure who wrote it but I’ve always remembered it. When two freshly minted teachers get married and try to buy a starter home, if they cannot, then the market is due for a correction.
For those of you who are new, Econprof is an OG of the highest order. I was heavily influenced by the posters back then, Econ was one of those influences.[/quote]
I think the “freshly minted teacher” test is rooted more in nostalgia than factual realities. There are plenty of counter examples. In the Bay Area the income of two young teachers has been inadequate to buy a starter home for decades. Of course the definition of starter home also changed. Maybe they can buy a condo, but not single family property with a yard. The trend in San Diego is similar.
Several years ago someone posted a news article here featuring a young woman from the Bay Area who was frustrated that she could not afford to buy a house “like the one she grew up in.” It was a good example of the “housing crisis” in California. Of course her problem is now there are many more people that want that house, many have relatively better incomes than their parents, and there are not proportionally more houses. Supply and demand.
There will be ups and downs but, in areas with population and economic growth, people are going to have to learn to expect less with each generation.
