Home prices have gone crazy recently even by historical standards:
And, while inflation has also picked up lately, the trend remains relatively more linear:
That means that home prices, adjusted for inflation, are increasing. They have even surpassed levels seen at the height of the housing bubble:
Another way we can adjust housing prices is for population, which is (thankfully) not very volatile:
This creates an interesting but kind of out there metric almost like real GDP per capita - essentially, real home price per capita:
This metric shows we aren’t yet at housing bubble levels but…we might be there soon. Furthermore, if we have to come up with weird new metrics to find ways we aren’t at dangerous levels, we are probably in a concerning situation to begin with.
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