Taps Coogan – September 5th, 2021
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The following chart, from EEAGLI, shows the number of years of work in the UK that it has taken to equal the average home price since 1845.
Back in 1845, it took just shy of 12 years of median income to add up to the average home price, a number which fell to a low of just 2.2 in 1919, the end of World War I and the Spanish Flu outbreak. Post 1919, the number oscillated around ‘4’ until the Dot-Com bubble popped and the era of increasingly accommodative monetary policy took off. It is currently at 8.5 years, tying the brief housing bubble peak for the least affordability since the turn of the 20th century, when work and housing were both very different things.
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