This chart shows what was stated in that video posted a while back. Adjusted for inflation, incomes are stagnent and dropping from the 70's to today. In spite of this, home prices have soared from the 1970's to today. What does this result in?
Affordability has worsened over the past 20-30 years for families trying to purchase a home because incomes have not kept up with rising housing prices. (this is why, ultimately, the result of the housing crisis is a good thing- lower home prices. The market is re-adjusting its prices to levels they should be at. It's correcting itself from prices that got way too high)
A recap of the long video I posted earlier:
Comparing the 1970's family with the 2009 family you would think that the 2009 family would be more wealthy with better savings and less debt because the wife now works and in the 70's she didn't. However, this is not the case. The family today actually spends less (inflation adjusted) on expendable goods such as clothing and food, and despite having more income (because of the mother working- dad's income has remained stagnent/even decreased some inflation adjusted), is more in the hole because of the huge cost of housing and healthcare (including premiums paid to your employer). The video ultimately got to the point that the middle class is shrinking and there will be no 'middle class' soon.
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