How decades of policy shifts pushed home prices to ten times wages

The author argues that Reagan-era policies, especially the dismantling of labor unions, have driven housing costs to about ten times an average salary.

In a recently released chapter, the writer connects today’s housing market—where homes cost roughly ten times an average worker’s pay—to the neoliberal turn begun when Ronald Reagan entered the White House. The analysis highlights that productivity gains outpaced wages after the 1980s, that minimum-wage growth lagged inflation, and that the erosion of antitrust enforcement and union power stripped workers of wage floors and political clout.

By weakening unions, Republicans not only cut labor costs but also deprived the Democratic Party of its historic fundraising base, prompting leaders like Bill Clinton to embrace market-oriented policies. The piece notes that without strong unions, the United States cannot rebuild a middle class that once encompassed half the population. It points to recent primary races, such as Abdul El-Sayed’s union-backed campaign against Haley Stevens, as evidence that labor revitalization could reshape politics. Ultimately, the author urges a concerted pro-union movement to counter oligarchic influence and lower housing costs.