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When looking at the evolution of the cost of housing in the US over the last 50 years, we draw 2 conclusions. Firstly, the costs of renting have increased almost 10 fold in nominal terms since the 70’s and, secondly, the cost of buying has decoupled completely from the cost of renting over the last 5 years. When looking at today’s absolute level, we conclude that owning a house has become an unaffordable luxury for the average US household.
