Quote:
Originally Posted by opendoor
Actually your example proves the opposite given that you're comparing a 29 year period with extremely high inflation to a 19 year period with low inflation. $39K in 1969 was equivalent to $184K in 1998 dollars, so those prices are dead on. On the other hand, $185K in 1998 dollars is equivalent to $264K today so the $750K example is nearly 3 times more expensive after accounting for inflation.
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I don't think its fair to compare the same property in the same city.
The city has changed. Buying a house in a 500k city is different than buying a house in a 1 million person city. The distance from the new housing stock greatly affects the price the person is willing to pay. Any comparison should really be done on new construction at the suburban edge of the city if you want apples to apples. As you can't expect a city to grow in size and not have higher property values the closer you are to downtown.
It would be like moving from Saskatoon to Calgary and expecting prices to remain the same.