KC Condo Tracker

What Goes Up, Must Go Up

June 7th, 2008 11:00 PM by AJ Gentry

Historically three things go up in concert (1) gas (2) minimum wage and (3) housing costs. I took a look back forty years ago and here's what a gallon of gas cost, what a minimum wage worker made per hour, and what a five bedroom home cost:

            GAS    MIN     HOME

1965       .25    .55          15,000 

2005        2.50    5.50    150,000

2008        3.85    6.50    TBD

If history proves itself, housing must recover from the decline and increase in value before year end or according to Money magazine's June issue, by 2nd quarter of 2009. When looking at 100 other cities (major markets), Kansas City is only experiencing a .6% decline currently. It just a matter of time before housing price rise again to stay in line with increases shown in gas and minimum wage.

Posted in:General
Posted by AJ Gentry on June 7th, 2008 11:00 PM

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