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      05-23-2020, 12:58 PM   #1

Drives: Like a bat out of hell.
Join Date: Apr 2019
Location: here and there

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The average american home price has gotten out of hand

This is not a debate on who's right or wrong or what but whatever happened to middle America?

Back in 1970, the median wage was $19K and the average price of a home was $24K. Your run of the mill guy was earning 79% of what an average home cost.

Fast forward to 2020, the median wage is now $55K. That's almost 3x of what people earned back then but the average price of a house is now $150K. That's earning only 37% of what an average home cost. There are 30-45+ years loan now too.

There are plenty of empty spaces across the country. Lots of room to grow. So why are houses over 6X what they used to cost?

Are there over an abundance of $10M homes that skewing the statistics. We're relying more on migrant workers and day labors to build homes now as well.

Is it labor cost? The material cost (are plywood and fiberglass that expensive? ) The land cost? (there are plenty of cheap land out there)
Are modern home so extravagant that it costs 6X more than it used to?

I understand why Europe, Japan and Asia have expensive homes. Land is limited and their population has grown tremendously.

But I look at my local real estate listing in middle America and I still can't believe what the houses are selling for. Even in the not-so-nice part of town, people are getting close to $100K for their homes.