2020 Was the Most Affordable Year to Own a Home in the Last 50 Years!
This blog post will be short and sweet. It will largely be to thank and praise One Rental at a Time for all the content and value they provide, but also to share what was, at least for us, some mind-boggling outcomes from analyzing 50 years of data. What Michael Zuber from on Rental at a Time did was collect and analyze 50 years of real estate data. That encompassed: home ownership rate, median home price, home appreciation, 30 year fix interest rate, down payment, finance amount, wage growth, and monthly gross income among other things.
With that data, he shows when housing was the least affordable, when it was most affordable (based on what percentage of one’s income goes towards the down payment), and what are the best leading indicators of housing affordability trends. His data and content on the subject is packed with surprises!
Most investors, whether they invest in precious metals, real estate, or the stock market, are constantly trying to time the market and predict the next crash, or claim they know the secret to what will cause the next down turn. Well, maybe we have it all wrong… maybe we should look at the data and use that for a change.
Biggest surprises and learnings from this data and these videos:
interest rates are not what will kill housing.
home appreciation seems to mostly be tied to wage growth
the least affordable time to buy a home was 1981
the most affordable time was… yes, 2020!
home price could grow another 20%-25% before reaching the peak
Michael has covered this topic and the data in numerous of videos; we like this one the most and we highly recommend you go and watch it to get the full scoop from the source himself! I believe anyone who signs up for Michael Zuber’s FREE online course on real estate investing, side hustles, and understanding family financial health can get a copy of the spreadsheet (image below).
As always, we truly enjoy learning from and sharing all the great content and value that Michael Zuber produces and that is where all credit is due. Anyone even remotely interested in real estate investing or general financial news should follow Michael Zuber and One Rental at a Time!
Thank you!
Michael Zuber’s 50 Years of Real Estate Data
