The rise of dual income households increases total household income, allowing couples to qualify for larger mortgages. As more buyers can service bigger debts, demand for housing at higher prices rises. The increase in borrowing capacity generates an arms race, driving up house prices over time.
Ultimately buyers set prices, not sellers. Thus a trend of households having less ability to incur larger debts should, over time, lead to greater housing affordability.
Ultimately buyers set prices, not sellers. Thus a trend of households having less ability to incur larger debts should, over time, lead to greater housing affordability.