The BLS says wages are rising faster than the CPI. Prospective home buyers would not agree.
If you do not already own a home it’s getting harder and harder to buy one. Meanwhile, rent outstrips wage growth.
Key Ideas
Median vs Average Wages
It’s important to note that hourly wages are averages. The median wage earner is even worse off. Also note the difference between median and average new home prices.
Purported CPI
The CPI is way understated for many, if not most people, as anyone in school, anyone paying their own medical insurance, or anyone seeking to buy a home will attest.
Median vs Average New Home Price
Meanwhile, the Fed is busy hiking. Each hike in interest rates lessens the amount of mortgage one can afford.
