Home Prices Continue To Rise Faster Than Wage Growth (Las Vegas Fastest, Washington DC Slowest), First Time Homebuyers Face Grim Reality

Case-Shiller has released their June housing report.

The 20 metro home price index rose 6.31% YoY. The bad news? Hourly earnings for US private sector workers is only growing at 2.70% YoY.

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As they say, all real estate is local. The fastest growing city in term of home prices is Las Vegas at 13% YoY with Seattle in close second at 12.8% YoY.

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The slowest growing cities are Washington DC that is growing at a below-average rate of 2.9% YoY and Chicago at only 3.3% YoY.

The growing gap between home price growth and earnings growth is reflected in the rising cost of first time buyers.

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Housing for many households is simply unaffordable, particularly for first time home buyers.

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