Affordability: More than Wages vs. Prices

Few economic terms are used more frequently today than “affordability.” Whether in news headlines or policy discussions, the term is routinely cited. Public discourse on the topic usually centers around the money a typical household has to spend and the price of the goods and services purchased by that household.

Over the past 25 years, the amount earned by a typical household has increased substantially. At the same time, a broad set of goods and services have increased in price by a similar amount.

The latest Forward Analytics Spotlight looks at the issue of affordability and the complex issues that define what the term really means.