Home prices in the US rise faster than wages

According to the sheet New York Times, house price Housing is growing faster than wages in major cities around the world, in which the top 10 are cities in the US, putting pressure on the people of this country.

The article cites research from an online real estate consulting company based in the UK that shows that, in 2021, the average income of a worker in the city of Cleveland, Ohio in the US is only likely to be buy about 27 m² residential area, which is just over half of the 47 m . area² in 2017. The price of a unit of housing space in this city has increased by 134% in the past 5 years, while the average salary here has only increased by about 37%.

Housing prices are increasing faster than wages in major cities around the world, of which the top 10 are cities in the US. (Illustration image – Photo: Xinhua)

In fact, rents have risen sharply across the United States recently, but housing prices have risen even faster. Faced with that fact, an article in the newspaper The Wall Street Journal Ask the question: “Is it better to rent or buy a house? What to do in the context of the hot housing market?”.

The article cited CoreLogic data showing that the rent of a single-family home in February increased by 13.1% over the same period in 2021.

House prices in March increased by 20.9% compared to a year ago. Along with that, the 30-year home loan interest rate has also increased on average to 5.27% at the beginning of May, up sharply from 2.96% in the same period in 2021.

The article states that if you have an amount equivalent to 10% to prepay the value of the house, the rest is borrowed in installments and lasts for more than 5 years, then buying a house will be a better financial option than buying a house. renting a similar house to live in.

Housing prices in the US have increased by as much as 40% since the outbreak of the COVID-19 pandemic. However, according to the Washington Postthe period of accelerating housing prices in the US seems to have passed, the heat of the market will be reduced due to the Fed’s base interest rate increase.

The article cited Freddie Mac’s forecast showing that home prices in the US this quarter will only increase by about 2.2% compared to the previous quarter, significantly down from the 5% increase in Q1, then continue to decline. down to just 1% per quarter over the next year.

Experts say that, at the moment, if you have money and are eager to buy a house with the expectation of a large and quick profit, you will be disappointed. However, if you buy a home to live in for the long-term instead of renting, your investment will increase over time, even if home prices increase only slightly in the coming years.

Home prices in the US increased by nearly 20%

VTV.vn – According to a report on the US housing price index recently released by S&P, home prices in the past 1 year in the US have increased by nearly 20% and show no signs of slowing down.

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