Real Estate Dips, Still Unaffordable

Author:	Lucas Jones
Source:	Homes Discovered
Date:	January 16, 2007

Real Estate prices in the United States have dipped a bit in the past year but many Americans still struggle to afford a median-priced home in Toronto.  American workers are not closing the gap on affordability and have been so far behind as it is.  Real estate prices have increased in value so much that they have far outpaced the growth in income. In an attempt to afford decent housing many people are spending dangerous percentages of their salaries on a mortgage.  They have to cut out other necessities like transportation costs or health insurance just to be able to afford a home.  This is a major reason many Americans lack proper health care.  Other ways people try to deal with the rising burden of housing is to work longer hours, work second jobs, or live with additional income earners. This is also puting a strain on family relations and values.  When primary earners of a houshold are forced to work longer hours or second jobs, they have less time to spend with their families.  This will eventually erode the core of American culture's family values. The only way to help low to moderate income people is if builders build cheap, high density living spaces such as condos or townhomes.  Small drops in home prices will not help most of these people and the resulting benefit is marginal at best.

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