The most telling statistic in my colleague Mike Rosenberg’s latest story on soaring house prices was this: In the past five years, home prices across King County have grown four times faster than wages.
We are an exaggerated version of a national story, that the housing affordability strain on Americans has as much to do with lagging wages as with housing prices. In the city itself, the challenge is exaggerated by limited land (although we are building more than the Bay Area).
Rosenberg’s story asks whether would-be buyers are giving up. So, I’m asking you. And as to whether you would leave, I mean leave the Seattle metropolitan area:
This Week’s Links:
• Work and the loneliness epidemic | Harvard Business Review
• California is the future | Peter Leyden and Ruy Teixeira
• Why don’t tax cuts boost growth? | Growth Economics
• How AI could change Amazon | Digitopoly
• Central bank independence | Larry Summers
• Mergers are bad for innovation | ProMarket
• Black Monday, 30 years after | Money & Banking
• Debt keeps rising and nothing bad happens | Noah Smith
Today’s Econ Haiku:
Shale is slowing down
You might even say it peaked
The planet says, “Ahhhh”