Row 44929

Row ID: 44929 | Dataset Entry | Axioma AXP Content Repository

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This page contains data entry 44929 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

>But then the house goes up 4% a year which will be like $60k a year for most houses.

And? Do you buy a house every year? Do you buy a house every year *in cash*?

Rent of primary shelter (and the rent of equivalent shelter for homeowners) is 33% of CPI. That's large enough to match the spending of most renters (80% spend 32% or less of their disposable income on rent). And only a third of US households actually rent. The other two thirds own the home they live in, which means that CPI likely *overstates* the inflation they experience.

It's not "magical accounting". The shelter component of CPI is more than adequate to cover the shelter costs of the typical American. It's true that the cost to buy appreciating investment assets like houses are not directly represented in CPI. But this directly impacts just the fraction of the population who wants to move/buy at any particular time, and particularly those who don't already own another house that they can sell.

And even then, most Americans aren't cutting a check from their checking accounts to buy houses. They are financing them over 30 years. That $60k increase in the listing price does not mean the buyer needs to spend an extra $60k that year (and certainly not an extra $60k *every year* on average, which is what most other cost increases in CPI represent).

FieldValue
text >But then the house goes up 4% a year which will be like $60k a year for most houses. And? Do you buy a house every year? Do you buy a house every year *in cash*? Rent of primary shelter (and the rent of equivalent shelter for homeowners) is 33% of CPI. That's large enough to match the spending of most renters (80% spend 32% or less of their disposable income on rent). And only a third of US households actually rent. The other two thirds own the home they live in, which means that CPI likely *…
label r/economics
dataType comment
communityName r/Economics
datetime 2024-05-22
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Raw Record

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  "text": ">But then the house goes up 4% a year which will be like $60k a year for most houses.\n\nAnd? Do you buy a house every year? Do you buy a house every year *in cash*?\n\nRent of primary shelter (and the rent of equivalent shelter for homeowners) is 33% of CPI. That's large enough to match the spending of most renters (80% spend 32% or less of their disposable income on rent). And only a third of US households actually rent. The other two thirds own the home they live in, which means that CPI likely *overstates* the inflation they experience.\n\nIt's not \"magical accounting\". The shelter component of CPI is more than adequate to cover the shelter costs of the typical American. It's true that the cost to buy appreciating investment assets like houses are not directly represented in CPI. But this directly impacts just the fraction of the population who wants to move/buy at any particular time, and particularly those who don't already own another house that they can sell. \n\nAnd even then, most Americans aren't cutting a check from their checking accounts to buy houses. They are financing them over 30 years. That $60k increase in the listing price does not mean the buyer needs to spend an extra $60k that year (and certainly not an extra $60k *every year* on average, which is what most other cost increases in CPI represent).",
  "label": "r/economics",
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  "datetime": "2024-05-22",
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