Housing Markets Pricing Out Middle Class
This AP article talks about something I’ve long had suspicions about: The surge in purchases of houses is rapidly pushing out the middle class. As owners and real estate agents get more comfortable with the market boom their reaction is predictable: jack up the prices.
California seems to be the worse off, with this scary bit of info from the article:
“In California, the situation has long been the worst: Only 17 percent of households could afford a home with a median price tag in April, according to the California Association of Realtors.
So in one of the largest states in the country, both in geographic and population size, less than one fifth of the residents can afford a home based on average sales figures.
Unfortunately Michigan isn’t mentioned in the article, but I find it hard to imagine the situation is any better here.