Quote:
Originally Posted by Oling_Roachinen
Sorry, are you assuming they are not putting down any down payment?
It's a lot easier to save up for that $75,000 when you're not drowning in debt from student loans, rent is low and it's only 2x your yearly salary compared to the 10x it is today ( quick and dirty average income in 1985 was 36,900 (1985) compared to 46,700 (2017)
There's a reason that first-time home buyers keep getting older and older.
Interest rates need to be factored in, but the way you did that straight math just doesn't add up except for the extreme cases of someone buying with no down payment which doesn't happen.
Dependent on interest rates of course how you approach home buying, but when they were astronomical it just made sense to save up when it was relatively easy to do so. Now it doesn't make as much sense (or at least let's say it wasn't as critical) to save up but that's part of the reason debt is so high too. |
Not that I don't agree with your overall point, but I believe those income numbers are in 2017 constant dollars. So the actual income in 1985 would be more like $19K in 1985 dollars.