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It is called supply and demand. In 1970 the US population was 203,392,031. In 2010 it was 308,745,538. For those of you crybabies that want to know why everything is turning to crap, ask the extra 100 million+ people that are part of the equation.
That pretty much sums it up. The decline in the natural qualities of this planet has been in inverse proportion to the rise in the human population. Overpopulation is at the root of most of the world's problems. Sad but true.
It is called supply and demand. In 1970 the US population was 203,392,031. In 2010 it was 308,745,538. For those of you crybabies that want to know why everything is turning to crap, ask the extra 100 million+ people that are part of the equation.
As Pogo says, "We have met the enemy and he is us."
'Expensive' is a relevant term. Yes, houses today are significantly more expensive than they were in 1970 ... but, what isn't? I remember thinking in about 1970 that anyone who could make $10,000-$15,000 per year pretty much had it made! -- I also remember buying a very nice, tri-level 3/2 home in a good area for about $16,000 ... and a great new little sports car for about $4000! Of course, one didn't need a small car then, since gas prices (during the 1968-1974 'gas wars') were around 25-cents per gallon.
You are so right. I remember new cars (not sports cars ) going for about $3000 in 1970. Found a Forbes article from 2012 that has the average price of a new car or light truck at over $30,000.
I remember buying my first house, a 1600 square foot rambler with a detached two-car garage and built-in workshop on about 1/2 acre and paying $58,500. I thought that was a lot of money in 1989.
I'm looking at buying a new pickup truck shortly and looking at spending almost $65,000 for it.
You are so right. I remember new cars (not sports cars ) going for about $3000 in 1970. Found a Forbes article from 2012 that has the average price of a new car or light truck at over $30,000.
I remember buying my first house, a 1600 square foot rambler with a detached two-car garage and built-in workshop on about 1/2 acre and paying $58,500. I thought that was a lot of money in 1989.
I'm looking at buying a new pickup truck shortly and looking at spending almost $65,000 for it.
$58,500 in 1989 is the equivalent of $111,000 today. Your 1600 square foot home in 1989 is at today's equivalent of $69 a square foot. Not sure how old your house was when you bought it but you describe it as a "rambler" with a detached garage, so it doesn't sound as if it was a new home but I could be wrong. But around here, an older home in an outlying area commonly can go for $70 a square foot.
Your big fancy new pickup truck which is loaded with state of the art technology is the equivalent of $10,000 in 1970. But your family sedan (like you said, not a sports car but just the average family car) in 1970 is today's equivalent of $18,000 today. Among the cars that you can buy today for $18,000 or under are:
The Honda Civic
Volkswagen Jetta
Mazda3
Dodge Dart
Kia Soul
Ford Focus
I'm not saying prices haven't increased - just putting some perspective on things. Sure, you paid less in 1970 - but you made a lot less too most likely. Would you really be happy reverting back to your 1970 pay scale and living in a 1970s built 1600 square foot house, driving a car with no AC, roll down windows, no airbags or navigation system or XM radio or power anything, getting about 10 miles to the gallon? I don't know about you, but NOT ME.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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My first new car was a 1972, and I paid $2,399 for it. My latest is a 2014, and I paid $22,769. That's almost the same increase as home prices based on your data. The fact is that in some areas like ours, the median home price is more like $600,000, more than 3 times the US median, and the median household income is $135,000, almost 3 times the US median.
What is more important than comparing the US median is looking at the difference between prices in the most desirable areas where there are good paying jobs and the best schools for the kids. Back in 1970 there was not nearly as much difference between areas of the country as there is now.
True inflation is about 15% in our country. True unemployment is about 22%. Add them together and you get the "misery index" like what we saw during the Jimmy Carter era. Back then the misery index was inflation plus interest rates. The only reason interest rates are down is that our rulers have printed seven trillion dollars out of nothing. As Mae West used to say, "Hang on boys. It's going to be a bumpy ride."
Anybody here remember 18% home mortgage rates? Believe it or not, these are the good old days in the financial markets.
I haven't had time to read through the entire thread, but we are actually extremely fortunate in the U.S to have an affordable housing market, compared to other Western nations.
Take a look at average house prices versus income in Australia, the U.K and even parts of Canada...
True inflation is about 15% in our country. True unemployment is about 22%. Add them together and you get the "misery index" like what we saw during the Jimmy Carter era. Back then the misery index was inflation plus interest rates. The only reason interest rates are down is that our rulers have printed seven trillion dollars out of nothing. As Mae West used to say, "Hang on boys. It's going to be a bumpy ride."
Anybody here remember 18% home mortgage rates? Believe it or not, these are the good old days in the financial markets.
I meant the part where he said the "real" inflation rate was 15% and the "real" unemployment rate is 22%
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The decline in the natural qualities of this planet has been in inverse proportion to the rise in the human population. Overpopulation is at the root of most of the world's problems. Sad but true.
) going for about $3000 in 1970. Found a Forbes article from 2012 that has the average price of a new car or light truck at over $30,000. 
