U.S. Home Prices Increase By 153.3% Since 2010
According to a recent report from money.co.uk, the home price increase is outpacing wage gains by more than 10 times.
US home prices have increased by 153.3% since 2010, outpacing wage gains of 14.2% by more than 10 times, money.co.uk, an international credit broker for consumer credit products is reporting. At the same time, inflation grew annually by 1.25%, the company said.
While the property increase was the fourth largest of 30 industrialized nations surveyed by the firm, it was less than half the increase of the highest, Israel which had an increase of 345.7%. Switzerland was second at 165.5% while Germany was in third place at 162%.
The huge increase for the US has come as the growth of sole-person households has created more demand for smaller, more affordable homes, Freddie Mac said last week. Freddie noted the average household size in the US has been declining since 1960 and in the last 40 years, sole-person households have doubled to 36.1 million.
At the same time, smaller homes are being knocked down and replaced by larger homes in older neighborhoods in metro areas.
Accompanying this, the share of new singlefamily homes completed with four or more bedrooms increased to 44% by 2020 compared to 29% in 1990.
Freddie said sole-person households are likely to increase among Baby Boomers from divorces and deaths of spouse/partners.
GenZ-ers are anticipated to remain sole-person households longer from delayed marriages. Gen X-ers (who made up 19% of sole-person households) will begin aging out of their peak family years and slowly move toward becoming sole-person households (like the Baby Boomers), the Freddie Mac report said.
Freddie predicted suggests that there will be an additional 5 million sole-person households by 2030, mostly made up of Baby Boomers, followed by Gen Xers. According to the authors, more than 50% of all sole-person households are homeowners today.
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