Home prices relative to incomeHome prices relative to income

Caution – major, major, major error in interpretation of this chart by the finance influencers on X:

A 1980 house is not all like a 2020s house. Not even close. Homes are now nearly twice as big, have 2.5 bathrooms and 2-car garages. The square footage per occupant went from 300 sq ft around 1960 to 1,000 sq ft per occupant today.

Average and median square feet per single family home, and square feet per person
Average and median square feet per single family home, and square feet per person

After adjusting for the square footage change, the differences are not nearly so large.

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