Housing Is Not A Bubble, Therefore It’s A Bargain?: DiMartino Booth

Money Strong founder Danielle DiMartino Booth is out with her latest newsletter. And this one is on housing. Her view is that house affordability at the entry level has declined significantly. Moreover, Danielle notes that houses in the lowest-price quintile have gone up at a 8.5% annual rate for 67 months on the trot. With a 20% down payment as standard, many people are priced out of the housing market.

Two charts speak volumes.
Less affordable housing
First, there's the growth in real disposable income vs. the growth in house prices indexed back at 1990.

Source: Money Strong
Case-Shiller Index
The second chart shows the S&P/Case-Shiller index from 1987.

Source: Money Strong

Danielle's conclusion is spot on: residential property in the US may not be in a bubble...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More