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Message
re: The math for buying a home no longer works, per WSJ
Posted on 1/14/24 at 1:15 pm to hubertcumberdale
Posted on 1/14/24 at 1:15 pm to hubertcumberdale
quote:
its really quite simple
New home 2020 = $329,000
New home 2000 = $163,200
FRED
($329,000 - $163,200) / $163,200 = +102%
102% / 20 years = 5.1% annual growth
No, 5.1% annual growth is... +170%.
For +102%, it's just ~ 3.6%
1.036^20 = ˜ 2.03 (103%)
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