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Originally Posted by blynk
I guess there is a difference of house prices suddenly dropping, compared to dropping the Inc to House price over time.
If we currently have an average income of 1/10 the house price.
If you assume 2% inflation on income, and you could make house prices stay static, by the year 2030, thats already changing the ratio to 1/7.
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The problem is that this assumes that incomes are increasing for everyone, when actually incomes are only really increasing relative to inflation for the top 10%. When inflation is taken into account, incomes for everyone below the top 10% have either stayed static or gotten smaller. The only reason that it looks like incomes have increased on average is because of how much the incomes of the top 10% have increased, thus skewing the distribution.