Comparison Of House Prices In The Usa And Uk

[bpw]

I thought the figures below are worthy of comment. Firstly, lookat the differences in average wage. The USA now has a lower cost workforce than the UK, I don't think most Americans realise just how the USA has slipped in the rankings. Second, it's telling that the ratio of average house price / average wage is 5.8 in both countries. This surprised me a little since I have always assumed the USAs open skies allowed more low cost housing to get built when needed, unfortunately it looks like low interest rates are the prime culprit for the spiralling costs and indirect transfer of wealth from indebted young to greedy old.

UK -

national average house price now at £133,968

average wage is £23,000

ratio = 5.8

USA

national average house price now at 217,000

average wage is £37,000

ratio = 5.8

[Shamus]

I thought the figures below are worthy of comment. Firstly, lookat the differences in average wage. The USA now has a lower cost workforce than the UK, I don't think most Americans realise just how the USA has slipped in the rankings. Second, it's telling that the ratio of average house price / average wage is 5.8 in both countries. This surprised me a little since I have always assumed the USAs open skies allowed more low cost housing to get built when needed, unfortunately it looks like low interest rates are the prime culprit for the spiralling costs and indirect transfer of wealth from indebted young to greedy old.

UK -

national average house price now at £133,968

average wage is £23,000

ratio = 5.8

USA

national average house price now at 217,000

average wage is £37,000

ratio = 5.8

I thought the average house price in the UK was between £170k and £210k depending on which VI you listen to!!

[StevieK]

Second, it's telling that the ratio of average house price / average wage is 5.8 in both countries. This surprised me a little since I have always assumed the USAs open skies allowed more low cost housing to get built when needed, unfortunately it looks like low interest rates are the prime culprit for the spiralling costs and indirect transfer of wealth from indebted young to greedy old.

In the land constrained areas (i.e., Northeast, West Coast, Florida) which not coincidentally, have extremely high political barriers to new housing and much greater materials costs, the ratio ("affordability index") is much higher than the rest of the U.S. California alone has the 11 LEAST AFFORDABLE places to live in the U.S. based on affordability index. However in the Southeast, Texas, Midwest, Southwest (except AZ and Vegas), Rockies, land is plentiful, labor is cheap (mostly nonunion Mexican immigrants), barriers low and entitlements quick and easy, so the affordability index is much higher. Hence, you see a heavy migration from the high priced areas to low. It truly is a nation divided when it comes to housing markets.

[whiterabbit]

I thought the figures below are worthy of comment. Firstly, lookat the differences in average wage. The USA now has a lower cost workforce than the UK, I don't think most Americans realise just how the USA has slipped in the rankings. Second, it's telling that the ratio of average house price / average wage is 5.8 in both countries. This surprised me a little since I have always assumed the USAs open skies allowed more low cost housing to get built when needed, unfortunately it looks like low interest rates are the prime culprit for the spiralling costs and indirect transfer of wealth from indebted young to greedy old.

UK -

national average house price now at £133,968

average wage is £23,000

ratio = 5.8

USA

national average house price now at 217,000

average wage is £37,000

ratio = 5.8

One difference I see is that in the US the average house is much bigger and normally has more bedrooms ect. I would like to see the comparison between 4 beds houses. Also remember in the US you get 100% on mortgage interest with no limit.

[Pablo-silver or lead?]

The Market in Florida peaked in 2005. I have never seen any property market turn fron ultra bull to ultra bear so quick. On some sub-divisions of 200 properties over 30% are on the market, many for over 6 months. The only way to sell is lower the price to a level a prospective buyer thinks is below bottom. Lots of naive poor Brits dreams going down the tubes.

Pablo Silver or Lead?

[karhu]

I thought the figures below are worthy of comment. Firstly, lookat the differences in average wage. The USA now has a lower cost workforce than the UK, I don't think most Americans realise just how the USA has slipped in the rankings. Second, it's telling that the ratio of average house price / average wage is 5.8 in both countries. This surprised me a little since I have always assumed the USAs open skies allowed more low cost housing to get built when needed, unfortunately it looks like low interest rates are the prime culprit for the spiralling costs and indirect transfer of wealth from indebted young to greedy old.

UK -

national average house price now at £133,968

average wage is £23,000

ratio = 5.8

USA

national average house price now at 217,000

average wage is £37,000

ratio = 5.8

This housing boom is all about cheap money (i.e., low interest rates and losse economic policies from the BoE), not about planning permission etc etc etc etc.

[A Fool & His Borrowed Money]

There is a shortage of houses in the USA, that's why, err, house prices in the USA are currently high, as,.err..., there is a shortage of land.

[BandWagon]

There is a shortage of houses in the USA, that's why, err, house prices in the USA are currently high, as,.err..., there is a shortage of land.

Yep, we heard the same thing about Australia, houses are high beacause there is a shortage of land.

I kid you not!

[Guest giove]

i think I've been banned from posting new topics?