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Comment by xboxnolifes

6 days ago

How can inflation adjusted income be up and there still be an affordability crisis?

Housing is not part of the inflation calculation. There IS a housing inflation crisis.

The price of housing can rise even faster than incomes.

Housing is only a part of the basket used to measure inflation. Housing's price rose faster than the weighted basket average, some other goods and services rose slower or even fell.

  • Accommodation costs are the first part of any sensible measure of inflation. If you're not factoring in housing then you're fudging the figures.

    • Many people don’t see housing inflation - if you bought a house in 2020 and house prices were up 80% since then it doesn’t affect your housing costs, especially in the US where mortgage rates are fixed for length of term even if interest rates sky rocket.

    • Yes? Who says otherwise?

      As long as accommodation isn't 100% of your basket of goods and services you use to measure inflation, accommodation can rise in price faster (or slower) than the basket. This ain't exactly rocket science.

      1 reply →

  • Housing, schooling, healthcare, daycare, food.

    Samsung TV purchasing power has skyrocketed, though, so there's that.