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If inflation remained average and constant since 1976, the avg home price = 137,400 today
Posted on 7/13/24 at 11:34 am
Posted on 7/13/24 at 11:34 am
Instead it is closing in on 450,000 dollars*
I mentioned this in another thread but Harvard conducted a study where it concluded that the buying power of a dollar back in the late 70s was three times higher than it is today.
Based on the current housing prices alone, it may have been 3.5 times higher then. Think about that for a second: our parents/grandparents could, on ONE salary in a household, outperform 3+ full-time salaries in one household today.
This issue is more than just inflation. I think feminism was a marketing/economic ploy to push more money into the markets ultimately reducing our buy power and making us more dependent.
*2.43% inflation year over year starting and an average home cost of 43,400 dollars in 1976.
I mentioned this in another thread but Harvard conducted a study where it concluded that the buying power of a dollar back in the late 70s was three times higher than it is today.
Based on the current housing prices alone, it may have been 3.5 times higher then. Think about that for a second: our parents/grandparents could, on ONE salary in a household, outperform 3+ full-time salaries in one household today.
This issue is more than just inflation. I think feminism was a marketing/economic ploy to push more money into the markets ultimately reducing our buy power and making us more dependent.
*2.43% inflation year over year starting and an average home cost of 43,400 dollars in 1976.
This post was edited on 7/13/24 at 11:37 am
27
Posted on 7/13/24 at 11:36 am to theunknownknight
The United States has been destroyed by leftists and corporatists.
Posted on 7/13/24 at 11:37 am to theunknownknight
quote:
I mentioned this in another thread but Harvard conducted a study where it concluded that the buying power of a dollar back in the late 70s was three times higher than it is today.
The "great inflation" during that time was the problem.
quote:
The Great Inflation was the defining macroeconomic event of the second half of the twentieth century. Over the nearly two decades it lasted, the global monetary system established during World War II was abandoned, there were four economic recessions, two severe energy shortages, and the unprecedented peacetime implementation of wage and price controls. It was, according to one prominent economist, “the greatest failure of American macroeconomic policy in the postwar period”
LINK
Posted on 7/13/24 at 11:38 am to theunknownknight
But how much would that color TV cost now?
Posted on 7/13/24 at 11:43 am to theunknownknight
I happen to buy our first home in 1976. It was right at 1600 square feet. I paid $36,900.00. I put down 20% and got my mortgage rate down to 9.5%. I paid $246.00 per month.
I did my own landscaping. We furnished the kitchen, den and MBR. There was no money left for gingerbread. I added insulation to the attic to get the utility bill down. I did my own lawn, etc.
Right after that inflation got worse. Jimmy Carter was a disaster. Mortgage rates touched 12%. Buying a home became even more expensive.
I did my own landscaping. We furnished the kitchen, den and MBR. There was no money left for gingerbread. I added insulation to the attic to get the utility bill down. I did my own lawn, etc.
Right after that inflation got worse. Jimmy Carter was a disaster. Mortgage rates touched 12%. Buying a home became even more expensive.
Posted on 7/13/24 at 11:43 am to Strannix
If you REALLY want to be pissed off…
Based on inflation:
200,000 dollars today = 65,000 dollars in 1976
BUT it’s actually worse: The 65,000 is based on INFLATION alone.
Now add in the buying power issue of 3.3 and the real value of 200,000 dollar today is 21,000 dollars.
So with a decent two modern income household retrofitted back to then, you could pay CASH for house, car all in one year.
Using the housing prices as a basis for buying power, the average median home income was $142,000 in 1976 in today's values
Based on inflation:
200,000 dollars today = 65,000 dollars in 1976
BUT it’s actually worse: The 65,000 is based on INFLATION alone.
Now add in the buying power issue of 3.3 and the real value of 200,000 dollar today is 21,000 dollars.
So with a decent two modern income household retrofitted back to then, you could pay CASH for house, car all in one year.
Using the housing prices as a basis for buying power, the average median home income was $142,000 in 1976 in today's values
This post was edited on 7/13/24 at 11:56 am
Posted on 7/13/24 at 11:45 am to Strannix
Destroyed by federal printing press on laxatives
Posted on 7/13/24 at 11:59 am to RogerTheShrubber
Government spending causes inflation.
Posted on 7/13/24 at 11:59 am to theunknownknight
quote:
Instead it is closing in on 450,000 dollars*
The household median income in 1976 was $14k. It was $76k in 2021 (most recent data I have).
Homes increased 3.5 x. Household median salary increased 5.4 x.
This post was edited on 7/13/24 at 12:00 pm
Posted on 7/13/24 at 12:01 pm to LSUwag
quote:
Government spending causes inflation.
I suspect promoting two-income houses, abandoning the traditional stay-at-home mom, had a larger effect
Posted on 7/13/24 at 12:01 pm to theunknownknight
There is a YouTuber who calculates the percentage of income homes and rent cost in the past compared to now and it is insane.
Gen Z is fricked.
LINK
Gen Z is fricked.
LINK
This post was edited on 7/13/24 at 1:47 pm
Posted on 7/13/24 at 12:05 pm to theunknownknight
quote:
If inflation remained average and constant since 1976, the avg home price = 137,400 today
What a crock of sheet.
I can't believe that there are people that are stupid enough to believe this.
This latest generation is the most clueless & whiniest generation ever.
"Pay off my student loan, give me free health care, gimme gimme gimme".
They all expect to have a McMansion, new vehicles, numerous European Vacations a year, and a Corner Office VP Job by the time they're 30.
They refuse to do any well paying labor intensive job, everyone just wants to make 500k sitting in an office drinking Latte's while surfing the web half of the day.
Home Ownership is the same as it was in 1976, and the average home built today is twice the size as in 1976,
And homeownership is higher today than it has been historically.
From 1900 to 1950 the average rate of home ownership was usually less than 50 percent.
Now it's 65 percent.
And if you bought in the early 80's you got to enjoy an 18% mortgage.
And back then people didn't have Welfare, Obamacare, Medicaid, Food Stamps.
So let me get this straight, homes are historically unaffordable yet home ownership rates are near all time highs ?
Yeah that makes sense.
Bunch of clueless crybabies.
This post was edited on 7/13/24 at 1:00 pm
Posted on 7/13/24 at 12:07 pm to theunknownknight
Average home size in 1976 was probably like 1500 sf. Now, it's probably 2200 sf.
If someone has actual numbers I would appreciate it
Here are the numbers, I was wrong....
LINK
If someone has actual numbers I would appreciate it
Here are the numbers, I was wrong....
LINK
quote:
1970: 1,500
1980: 1,740
1990: 2,080
2000: 2,266
2010: 2,392
2014: 2,657
This post was edited on 7/13/24 at 12:11 pm
Posted on 7/13/24 at 12:07 pm to go ta hell ole miss
quote:
The household median income in 1976 was $14k. It was $76k in 2021 (most recent data I have).
Homes increased 3.5 x. Household median salary increased 5.4 x.
1. You are not accounting for inflation before the comparison: 14k is 45k today. THEN compare to median household income which is 67k as of 2023.That's a 1.49x increase.
2. The median household income today is inflated by ALOT because the top 1% today pulls the number well above the actual for those in the bell curve. Remove that outlier and the median income drops to 50k. This is a fairer comparison because the highest corporate owners in 1976 were making a lot lower incomes relative to the average worker then, meaning the 1% then weren’t nearly as much of an outlier. TLDR; the rich got richer and the poor got poored relatively speaking.
All this brings the actual buying power multiplier in 1976 back to around 3.3.
This post was edited on 7/13/24 at 12:15 pm
Posted on 7/13/24 at 12:09 pm to Joe Dimaggio
quote:
I can't believe that there are people that are stupid enough to believe this.
It's called math and compounding percentage points based on usual historical data pulled straight from google.I put the numbers in the post.
Posted on 7/13/24 at 12:09 pm to theunknownknight
Thanks, Reagan and Bush 41
Trickle down economics.... My arse
Trickle down economics.... My arse
Posted on 7/13/24 at 12:11 pm to theunknownknight
Regulation limiting supply has just as much to do with it as inflation. You can thank your local government and existing residents who don't want development.
Zoning Laws Limit Housing
Zoning Laws Limit Housing
Posted on 7/13/24 at 12:11 pm to theunknownknight
"Why don't these young generations just save and buy a house like I did. Something something bootstraps..."
https://www.npr.org/2024/06/20/nx-s1-5005972/home-prices-wages-paychecks-rent-housing-harvard-report
(sorry for the NPR link)
https://www.npr.org/2024/06/20/nx-s1-5005972/home-prices-wages-paychecks-rent-housing-harvard-report
(sorry for the NPR link)
Posted on 7/13/24 at 12:16 pm to wheelr
70s was brutal on the value of the dollar
Posted on 7/13/24 at 12:16 pm to mauser
quote:
Destroyed by federal printing press on laxatives
Absolutely
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