House prices vs Income over time

[expert701]

Year-Median House Price-Median Household Income

1950-7,400-2,990

1960-11,900-4,970

1970-17,000-8,734

1980-47,200-17,710

1990-79,100-29,943

2000-119,600-55,030

2010-221,800-49,445

Also don't forget that many women didn't work full time until at least the 70s so the household income was mostly earned by men. Am I missing something?

[JonEh10]

2020- 1,200,000-60,000 in California

[Clownworld69]

[moosik85]

Australia 650,000 - 60,000

[KirkMcquest]

Back in 1950, my grandfather bought a small 3 bedroom house for 5k. His yearly income was 10k [ worked as a pants presser in a laundry ].

[Achilles87]

Damn 200k for a house sounds nice

[hoganrulz]

You can buy a box for £70K in Yorkshire, in the hood. £40K in Nelson, in the Midlands..........a "fixer upper". Average income is £27K in the UK I think which is literally fuk all.

[Ironmanlet]

This game is fun, do college now.

[Polaris]

Back in 1950, my grandfather bought a small 3 bedroom house for 5k. His yearly income was 10k [ worked as a pants presser in a laundry ].

Yeah. My maternal grandpa had an 8th grade education and worked as a security guard at John Deere. Made enough to have a very solid middle class life and raise 4 kids. Also was able to retire with a pension and really good medical benefits.

[KirkMcquest]

Yeah. My maternal grandpa had an 8th grade education and worked as a security guard at John Deere. Made enough to have a very solid middle class life and raise 4 kids. Also was able to retire with a pension and really good medical benefits.

The quality of life is garbage right now in comparison to previous generations. We have the internet, they had financial security, strong family unit, a house, and children by age 30...not a good trade off.

[Slates77]

"Back in our day, if you wanted something you worked for it"

[aleeboy]

1990 was the last ride.

The best time for investors was the late 70's and early 80's.

If any Boomer is poor, they are the biggest losers of all time.

[samsbolton]

You can buy a box for £70K in Yorkshire, in the hood. £40K in Nelson, in the Midlands..........a "fixer upper". Average income is £27K in the UK I think which is literally fuk all.

Where are these ghastly sounding places? I don’t leave the Home Counties these days

[wasp9166]

was thinking about this this morning actually

mortgages and marriage ,not the investments they used to be

housing is moving towards rich and poor , the rich buy up the houses , and either live in them or rent them , to the poor

[hoganrulz]

Where are these ghastly sounding places? I don’t leave the Home Counties these days

Nelson's a chit hole in the Midlands & just lmfao at pretending to have never heard of God's own county of Yorkshire, Samuel plz.

[Serenadium]

the multiplier isnt big overall because there hasnt been much growth in rural bum**** areas. There are alot of these lots that bring the overall average down.

Do major cities like Sydney, Melbourne, Vancouver, NY, LA, Paris, London, Hong Kong etc. I'd expect it to go from 2-3x annual salary to 10x +.

[Judgment]

housing is moving towards rich and poor , the rich buy up the houses , and either live in them or rent them , to the poor

For outrageous prices.

[GiveMeTheD]

Its singlecels that really struggle.

Where I live, average salary is 26k. You can buy a nice detached house for 220k.

So if you have a combined income of 52k, you're looking at just over 4 x income. Not awful.

But singlecels on average income, have to settle for boxes in chit areas. Which lead to kids staying at home until they're 35.

Why leave a nice house, to struggle in a chit tip?

[Jimbo0731]

We will have to see what happens when this recession finishes kicking everyone in the nuts. Real estate is gonna take a dump over the next few years now that requirements have gone up, people losing jobs in record numbers and jobs simply won't be coming back soon in a stable manner. Fed can't print themselves out of this problem this time. So this price disparity will come back to reality in a lot of places I think but it may take awhile. Hopefully we don't sell out to foreign money which is sadly what the boomers and most will do.

[aleeboy]

If you would be selling a house, and had an offer come in for 10% over the next closest offer, would you take the 2nd highest offer because it wasn't a foreign buyer?

And that's not taking into consideration your location, which would make it impossible to tell whether or not an offer was from a foreign buyer.

LOL.

Come on, bro.

99% of people will say they won't sell it, but 95% will.

[SillieBazzillie]

Yeah. My maternal grandpa had an 8th grade education and worked as a security guard at John Deere. Made enough to have a very solid middle class life and raise 4 kids. Also was able to retire with a pension and really good medical benefits.

And why isn't that possible anymore?

You gonna blame libs? The gubmint? Illegals?

[TimeTravelerBro]

1964 Ford Mustang price $2,368

Median wage $4,963

[MuscleXtreme]

Haha, exactly.

Sounds like there needs to be laws against foreign ownership of American real estate then.

[aleeboy]

Sounds like there needs to be laws against foreign ownership of American real estate then.

Why do you think Politicians are now all wealthy? They are the ones who have benefitted the most selling their prime zoned speculative land to foreign buyers.

[Evlve]

Mortgage backed securities and subprime loans.

Rather than actually using income to buy a house you can get a nice loan from the govt regardless of employment status or income. The influx of money to people that didn’t have it before drives up the cost due to additional demand.

Similar to college tuition.. once the government steps in and says “everyone deserves a college education” via student loans the universities don’t need to be competitive and can jack up the prices of tuition. Uncle Sam will cover any 18 year old that’s been sold on the idea and thinks they will make 7 figures once they graduate anyways.

Everyone goes into more debt on average.. being in debt is culturally normalized, college students don’t pay off their loans for decades, people lose houses when the real interest rates kick in, and money gets printed to bail out the corporations that architected the systems causing more inflation and debt.

[r32gojirra]

Where are these ghastly sounding places? I don’t leave the Home Counties these days

To be fair, you never left before

Don’t blame being trapped in your squalor on quarantine

was thinking about this this morning actually

mortgages and marriage ,not the investments they used to be

housing is moving towards rich and poor , the rich buy up the houses , and either live in them or rent them , to the poor

I never rent to the poor

[A-man]

2020- 1,200,000-60,000 in California

lol add in Toronto there too.

Housing only goes up (when interest rates are at zero) !

[GordonXXX]

IMO - we are going to revert to the historical mean -

[Achilles87]

was thinking about this this morning actually

mortgages and marriage ,not the investments they used to be

housing is moving towards rich and poor , the rich buy up the houses , and either live in them or rent them , to the poor

Unless you're planning to have kids or you want to move to the countryside and have a big plot of land why would you buy a house these days? Huge mortgage + property tax + maintenance costs + being tied down to one location. The benefits are pretty slim

[Polaris]

And why isn't that possible anymore?

You gonna blame libs? The gubmint? Illegals?

There's a lot of reasons and "blame" to go around.