Posted on 05/30/2017 10:04:24 AM PDT by Thalean
In 1973 the median household income was $9,265...
Consider that the median sales price of a new home in January, 1973, was only $29,900—3.2 times the median household income. In other words, if the median family saved up every penny earned, and put it towards a new home, it would take just over three years to buy a brand new house.
This held relatively steady for the next decade. In 1985, new home prices crept up a little, to 3.7 times the median household income.
It was during the 1990s and 2000s that home prices began to skyrocket towards where they are today.
In January 2017 the median sales price for a new home was $317,400, which is 5.6 times the median household income of $56,516.
All told, houses are 73% more expensive today, in real terms, than they were in 1973...
The US Census started tracking the median lot size (in square feet) for new home construction in 1976. During that year, the average lot was 10,125 square feet. In 2015, it’s only 8,600—the smallest on record.
So not only are houses getting more expensive, but we’re getting less land as well.
In the interest of fairness, I’ll also point out that the median new home is larger, in terms of square footage, than older homes as well—so it’s not a total loss.
(Excerpt) Read more at nationaleconomicseditorial.com ...
Here in Seattle, you’re not getting anything livable for less than 500K.
Just imagine how expensive they would be if they didn’t have all that ‘cheap labor’ building them!..........
It isn’t just the real estate; look at property taxes in 1973 vs today.
These reports can be deceiving. Its like saying a car is more or less expensive than in 1973. Or a cell phone is more or less expensive than in 1998. The product itself changes. Did the 1973 house have central air conditioning? How big was it? What type of windows did it have? How energy-efficient was it? Did it need to be painted every couple years?
I suspect that, generally, houses are more expensive today in suburban areas. But there are no easy comparisons.
It was during the 1990s and 2000s = women’s “lib” feminism and two income house holds.
Getting far less land these days.
Is the ground that much better?
cheap credit = expensive houses
“In the interest of fairness, I’ll also point out that the median new home is larger, in terms of square footage, than older homes as well—so it’s not a total loss.”
Fairness? That’s half the objective point! Interest has scaled prices, and we’ve normalized substantially larger/fancier homes. Another good case for “HowTo Lie With Statistics”: present an outrageous statistic, lament it, then much later say “oh by the way it all makes perfect sense and thus is not outrageous”.
I’m living the same income:price ratio he presents from way back when. Ergo, prices have actually dropped - I’m getting a lot more house for my money.
How bad is it? It takes two full time incomes in today’s America just to buy a home. And if one doesn’t have a bullet proof secure job, they could end up cursing that home they bought in short order.
The price of a gallon of gas in 1973 was 39 cents. Today it is about $2.35. That's a 500% increase.
The price of a can of Campbell's Chunky Soup in 1973 was also 39 cents. Today it's $1.99, an increase of 410%.
A Big Mac was 65 cents in 1973. Today, the average Big Mac will cost you $3.57 in the United States. That's a 450% increase.
Two pounds of ground coffee was $1.79 in 1973, and today it's around $6.70; that's a 270% increase.
Imagine how much cheaper housing would be if not for the immigration-fueled population explosion. Demand for lad and housing going through the roof. Matter of supply and demand. Supply of land constant. Endless increase in demand. More traffic. More pollution. Lower quality of life. But more Dem voters, so all is good.
There’s a new subdivision being built across teh street from me. Prices 300-325K depending on SF options. But what really gets me is the closeness of the new houses. They are about as close together as two teens at a movie................
But interest rates have dropped from 8% for a 30 year mortgage in 1973 to 4% now. Ignoring down payments, because I’m lazy, that 1973 house took 28.2% of the median income to pay for it. The 2017 house takes 32.2%. Not that big of increase. Now compare the square footage of the two eras’ houses.
Getting far less land these days.
Is the ground that much better?
...
There is more square footage because builders are stacking homes two and three stories high. I know someone who’s lived in a two story for many years. His primary requirement for his next home is that it be one story.
Um...population has increased. Supply and demand. Not exactly rocket science.
We bought and financed a nice 1200 square ft. brick house in Dothan, AL for 23,500 including down payment. Five years later in 1979 sold it and after all fees etc. were paid, got a check for $12,800.
You could not go wrong buying back then. Our house payment was less than rent. We did do a little bit of improvement, new carpet, backyard fence, but still it appreciated around 15,000 in that short time.
I bet now it would be approaching $100,000 if not more.
And they wonder why younger working folks can’t buy zip, or are in debt up to their eyeballs.
Our house in a country club area was built in 1978. We have 1/3 of an acre and no houses that close to us. I go to friends houses in newer neighborhoods and if the windows are open they can hear each other pee. I don’t want to live that close to anyone.
There are a lot more million-dollar neighborhoods around here now ..
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