Financial advisors say homes should be 4-5x annual income. So, how is this going to sustain?
It's sustainable in areas where there is a shortage of available housing for sale, relative to demand. In these areas, available housing is first sold to those with the highest purchasing power (I.e. income and/or wealth). Thus, home prices in areas with a housing shortage reflect not the median income, but the median home purchaser income, after subtracting their available wealth to deposit more than 20% of the down payment.
How is shortage sustainable? There will be a civil war if the whole country looks like the west.
4-5x annual income pre-tax or after tax? As you know, IRS takes a big chunk of your income.
Banks create money when they make loans. This new money inflates home prices. Then nobody can save and everyone has to work to pay interest for money that was created out of nothing. World wide slavery. Welcome to the matrix. You are a battery to them.
That's the effect of the bailouts and VC funny money. USD got diluted. People who had money, lost. They were fooled into thinking they didn't lose a single dollar of their savings. People who had assets, won.
Yep, that's why the 30 year mortgage will become the 40, 50, 100 etc year like other high costs cities soon.
It’s based on median house price and median income in county, it says so on the map.