re: Inflation was 300% higher from 1975 to 2000 than 2000 to 2025

Everything that matters to people who work and contribute to the economy and have families—housing, vehicles, tuition, etc has fricking exploded since 2000.

I don’t give a frick if eggs are only a little more expensive.

The bigger issue is that wages haven’t even come close to keeping pace.

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That suggests the median household buying power in 1975 would have been 82,200 last year. Mortgage rates were ~9% in 1975 but really built up in the early 80s. They were over 16.5% in 81 and were over 10% for the entire 80s.

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You could also buy what was at the time an “average” house for like $6.00.

1500 sq ft 3bed 1.5 bath starter homes in livable neighborhoods don’t exist anymore like they did for the second half of the 20th century. Where they do exist, it’s shitty DR Horton houses that cost 325k

Here is the data from Shadow Stats using the old calculation. Sorry, had Grok summarize it for me but go to Shadow Stats and play with it yourself.

CPI is a made up government number where the formula has been changed to make it look better than it is.

Inflation is 9-10% this year using the old method.

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2020: ~8% (official 1.2% + ~7 pp bias in low-inflation year).

2021: ~13-15% (e.g., late-2021 y/y ~15%; annual avg. ~13.7%).e866d4b20399

2022: ~15-17% (e.g., mid-2022 y/y ~17%; annual avg. ~16%).b91a4ad3e818

2023: ~12-14% (e.g., early-2023 y/y ~14%; annual avg. ~13%).0d1cd1

2024: ~9-10% (official 2.9% + ~7 pp bias; partial data as ShadowStats updates ceased mid-2023).ca4484

2025: ~9-10% (official est. 2.7% + ~7 pp bias; estimated based on recent trends).

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I would be curious to know how credit card usage affects these numbers if at all.

Now do avg income during those time spans. I'd be willing to bet that pay increased equally with inflation from 75-00 but not even close from 00-25

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Median house price in 1981 was $68900 using $3.55 as the buying power today and that would be $244,595. That 1981 house with 20% down and 1981 interest rates would have a P&I payment of $874. A $325k house today with 20% down and a current avg of 6.36% with 20% down would be a P&I payment of $1,900 which is 2.17 times the 1981 payment compared to 3.55 times in buying power.

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Pretty sure the median house price today is like $400k+.

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Pretty sure the median house price today is like $400k+.

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That produces an apples and bigger apples comparison. Median size in 2025 is 500sq ft bigger and the finishes are much higher quality today in the median price range especially if you compare floors, kitchens, and bathrooms.

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Median house price in 1981 was $68900 using $3.55 as the buying power today and that would be $244,595. That 1981 house with 20% down and 1981 interest rates would have a P&I payment of $874. A $325k house today with 20% down and a current avg of 6.36% with 20% down would be a P&I payment of $1,900 which is 2.17 times the 1981 payment compared to 3.55 times in buying power.

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Now factor in wages that haven’t kept up, plus the other things I mentioned initially like tuition for anything, insurance, vehicle costs, etc.

You didn’t give any commentary so I don’t know your perspective, but it’s certainly more expensive to be “middle class” these days than it was 40 years ago. As in having an average house with an average job and two cars with two kids in school takes up a higher percentage of family income than it did back then.

Public schools are unusable for most of the people on this website and in many areas around the country. The insurance costs—of all types, for everything—basically didn’t exist two generations ago. Etc etc etc.

"Well, every dollar I make
Is a buck I owe
And a 40-hour week
Leaves ten to blow...
Something in the big screen moved
It never seemed so hard
To keep a 20-inch tube
And a fenced-in yard"

Robbie Fulks

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Sure, but it's all relative though right?

Comparing 2 completely different time frames you'd want to look at what was available at that time not necessarily what's available in 2025 versus 1975.

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I know people want better houses than people of similar means bought in the 80s just like they want a large 3 row SUV when people in the 80s hauled a family of four in a sedan about the size of a modern Camry and dad wants to drive a huge P/U when the guys in the 80s were driving trucks smaller than a modern Tacoma. Those smaller trucks and cars exist today, the 1700sq ft houses exist today but people now want "better" and "bigger".


I will give an example, we own 4 rentals in Broadmoor. All S of Goodwood. They are from 1900 to 2400 sq ft. We have 2 single nurses, a little old lady, and a family of 4 in them. They all like the neighborhood. When I go there are always families riding bikes, people jogging, and people walking dogs. No, it isn't the U Club or Bocage but you can get nicely updated houses from $125 to $150 a square with nice yards.