How bad is it? Ponder this.
What many Americans are paying in 4, 5 or 6 months in monthly mortgage payments today, equals the full price, or total cost of what their parents paid for their homes in the 1960s.
Not true. 1960's dollars are not worth the same amount as 2017 dollars.
Yes, I agree.
The house I grew up in — very nice neighborhood, across the street from the elementary school I went to — cost my parents $17,500 in 1966. It last sold for $108K (about 10 years ago), an increase of almost 520% over 40 years.
On the other hand, that's a compound growth rate of only 4% over the same time period, which is in line with (actually less than) inflation.
Mother and Daddy bought a house with 40 acres in 1961 for $6000. The frame house was basically solid but we remodeled it a bit. Daddy, and his 3 Sons did all the work.
The land was beautiful, rolling hills with hardwood forest. There was also a nice concrete block dairy barn included. He got a VA loan and the payment was really small.
They sold timber a few years later and only the pines which were not that numerous for $12,000.
When they decided to retire and move back to their old home area, they made a killing on the sale. I did think they overpaid for their new place tho. I think they knew they were, but it was where they wanted to live and they didn’t want to wait.