The Housing Affordability Time Machine: Dollars & Decades

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Housing affordability has reached crisis levels in America, with today’s homebuyers facing significantly steeper challenges than previous generations. Using economic data from the Federal Reserve (FRED), this analysis visualizes how dramatically the housing market has evolved since the 1970s. By examining key metrics like the home price-to-income ratio, median home prices, and median household incomes adjusted for inflation, this dashboard reveals just how much would need to change to return to historical affordability levels. Whether through housing price decreases or income increases, the gap is substantial and growing. The findings highlight that today’s housing landscape requires over 3,700% income growth to match 1980s affordability – an economic reality that fundamentally alters the American Dream of homeownership. This project combines Python data processing, SQL database management, and Power BI visualization to create an interactive tool for understanding this critical economic issue. A detailed medium article examining these findings and their implications will be published soon.

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