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Hey Analyst 1 in RE - Comm, I'm here because nobody responded to this thread after a few days...maybe one of these resources will help you:

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I think this analysis is too simplistic. If you're a high earning your marginal propensity to spend is significantly lower than someone making less, so you end up saving far more of your income. If you took someone who made $50k/yr and spent every penny in one or another, then yes, a 10% bump - 7.5% inflation would mean a real bump of 2.5%. But if you take someone who earned $300k and they only spend $100k, inflation will cost them $7.5k, but a 10% raise will mean they earn $30k more, for a net of $22.5k, or 7.5% raise overall (22.5k on the 300k base). Aka the 7.5% only applies to the third you're actually spending, in this simple case 1/3 of your income, so your actual personal inflation is closer to 2.5% and after your 10% raise you're still up 7.5%. 

Obviously if you spend all $300k then yes, it's the same as the first scenario. 

 

Agree with what you said kind of. Unfortunately I am not earning that level of pay and even if I was the people in my market earning that much are getting priced out of the housing market. Realistically everyone in my area making $150k and less is seeing an impact. Rent is going up significantly in my area, well outpacing inflation. That alone is hurting us.

 

Are you on the appraisal side? If so, you should definitely see a massive pay bump. The appraisal business is booming right now. We have deals where our due diligence time is not enough because the appraisals alone are exceeding that time frame. Appraisal costs are also skyrocketing too.

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