The following explains why house price gains far exceed wage gains!!
In 17Q4, US household wealth rose by slightly more than $2 trillion to a record $98.75 trillion, or 6.8 times disposable income, surpassing the previous record of 6.52, in 06Q1. The increase in wealth attributable to the soaring stock market was $1.35 trillion, while wealth from real estate holdings, which includes more than residential houses, grew by $511 billion, with other items accounting for the remaining $220 billion.
Elliot F. Eisenberg, Ph.D.