Sunday, November 25, 2012

Housing vs. Wages


Click to enlarge.

If you believe inflation adjusted housing prices will rise over the long-term then you better believe inflation adjusted wages per capita will also rise over the long-term. Call me skeptical.

Women participated more and more in the workforce during this period. That drove real wages per capita higher. They're here. Now what?

Note: I set the y-intercept at zero for this chart's trend line (Zero Wages = Zero House Prices). It helped the trend fit the data much better in my opinion.

Source Data:
St. Louis Fed: Custom Chart

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