@Jon Klaus My first rental is something as tiny as a parking garage, but it's taught me a thing or two about landlording. 

The median household income is 60k, so where is the money going.

What I find most interesting though In the RE market is in the upper ends or starter price points that I build in in Oregon and Charleston  IE for 2k SQ ft DETACHED SFR's on city size lots.. .not little tiny things... price point 300 to 600k...

Both households make over $200K per year and they live in $400K+ homes that they own.

Because they are qualified for Section 8 based on total household income.

Originally posted by Max Householder: A few quick questions about the 1% rule while digesting the BP Intro to Real Estate Analysis.

If the work from home permanently isn't a fad, then I definitely foresee a demographic shift.Maybe older couples with Families who have lived in the Major Cities will wonder why they are paying so much to have a tiny place to live when they can have a lot more space in a different location.Maybe younger people would say, "Hey, I'm young and I want to live in the exciting Cities, especially now that the older crowd and little kids are moving out!"

“A thousand dollars added to the price of a new home, at any time, in any way, ... will eliminate 153,967 households from being able to buy that home,” said Greg Ugalde, immediate past chairman of the National Association of Home Builders.

I had $60k in the bank from several years of eating Ramen Noodels and living in a tiny apartment.

This is any household relying on a fixed payment salary as well anymore.