Here are “startling numbers”. 80% of earners, which includes the middle class, have made only slight gains in income over the past 38 years.
But the percentage of income needed to purchase the median home has skyrocketed.
This is a table showing the income levels
and the ratio of a median home price to yearly salary in 1967:
| Income Level | 1967 Salary (2004 Dollars) |
1967 Median Home Price (2004 Dollars) |
Ratio: 1967 Median Home Price To 1967 Median Yearly Salary |
| Lowest Fifth | $7,668 | $125,843 | 16.4 to 1 |
| Second Fifth | $21,246 | $125,843 | 5.9 to 1 |
| Third Fifth | $33,918 | $125,843 | 3.7 to 1 |
| Fourth Fifth | $47,457 | $125,843 | 2.7 to 1 |
| Highest Fifth | $85,406 | $125,843 | 1.5 to 1 |
| Top 5% | $134,722 | $125,843 | 0.9 to 1 |
Here is the same table, showing the data for 2004:
| Income Level | 2004 Salary | 2004 Median Home Price |
Ratio: 2004 Median Home Price To 2004 Median Yearly Salary |
| Lowest Fifth | $10,264 | $221,000 | 21.5 to 1 |
| Second Fifth | $26,241 | $221,000 | 8.4 to 1 |
| Third Fifth | $44,455 | $221,000 | 5.0 to 1 |
| Fourth Fifth | $70,085 | $221,000 | 3.2 to 1 |
| Highest Fifth | $151,593 | $221,000 | 1.5 to 1 |
| Top 5% | $264,387 | $221,000 | 0.8 to 1 |
So what’s the conclusion?