Posts Tagged ‘Median Household Income Trend’

Another reason I’m glad I’m not a Millennial

July 5, 2016

median-rent-and-income

Sharp increases in rents along with stagnant incomes over the past five years have helped create a dire situation for many of the country’s renters.  A new report shows how those trends have actually been playing out for more than five decades.

Inflation-adjusted rents have risen by 64% since 1960, but real household incomes only increased by 18% during that same time period, according to an analysis of U.S. Census data released by Apartment List, a rental listing website.

Renters fared the worst during the decade between 2000 and 2010, when inflation-adjusted household incomes fell by 9%, while rents rose by 18%, according to Apartment List.  That is likely because there were two recessions during that time and a housing bust in 2008 that drove millions of homeowners into renting.

The takeaway: The United States has grown much less affordable for renters for half a century and, barring a major change, is likely to continue doing so.

Source: Wall Street Journal.

These figures are national averages.   I shudder to think what it would be like to try to rent in places like San Francisco.

Why you should always adjust for inflation

February 18, 2014

household-income-monthly-median-growth-since-2000

This chart shows why no economic statistic is valid unless an adjustment is made to allow for the effects of inflation.

If you just look at income in terms of dollars, the American middle class has not done all that badly in the 21st century.

If you look at what those dollars will buy (setting aside the question of whether the CPI underestimates the true cost of living), the figures tell a different story.

For the context of the chart, click on Rising Inequality: Recovery Driven Almost Entirely by the Rich by “Gaius Publius” for the Center for Media and Democracy