what is available isn't affordable.

I bought my 1900 square foot house (1500 finished) on a .14 acre lot 15 years ago for around $200k. Houses in my neighborhood are now going for $450k. When it costs half a million to buy what used to be considered a "starter home".


Let's do the math on that. If around 2010 this "starter home" cost you $200k, you put 20% down (40k) and had a 3.5% interest, your monthly payment would be just under $1k/month. The 28% rule says you could afford that house on around a $42k salary and the down payment would be about 1x your annual salary.

Fast forward to today and that same home costs 450k at 7% interest. 20% down is around 90k, but the monthly payment comes in at around $3k/month and the 28% rule says it would take around a $130k salary to afford it.

Considering the median salary in 2010 was around 40-45k, a "average" person could buy this "starter home". Now, the median salary is closer to 60k and it would take over double that salary to buy the exact same home.