zorg1000 said:
SpokenTruth said:
Have you seen the rate of increase in healthcare costs, housing, education, etc... Are wages keeping pace with those? So it doesn't mean shit if you make 20% more now than 10 years ago if your housing costs have gone up 40%, insurance up 100%, education up even more.
|
Yep, in the last ~50 years, adjusted for inflation, healthcare has gone up like 500%, housing gone up over 100%, college tuition gone up like 150% and wages have gone up like 35%.
|
I just wanted to visit the housing part of this, as there is a reason I brought it up with the square footage.
There is this wild saying that housing is increasing so much faster than inflation.
Home sizes (https://www.aei.org/carpe-diem/todays-new-homes-are-1000-square-feet-larger-than-in-1973-and-the-living-space-per-person-has-doubled-over-last-40-years/) have increased from 1,660 square feet in 1973 to 2,679 square feet in 2013 (despite less people actually living in the average house). When calculating home prices on a per square foot basis...they absolutely have NOT increased 100% over the last 50 years adjusted for inflation.
In addition to the per square foot price actually staying near the same over the last 40-50 years, interest rates have actually gone from 8.5% in 1970, down to around 4% today.
This means for how much house you are actually getting today, your true cost of a mortgage has actually...decreased...over the last 40-50 years.