Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (1982)	3/14/2004 8:35:26 AM
From: loantech	Read Replies (2) \| Respond to of 116555

Mike great post. Right on . Here is the part I disagree with as I have had this argument with older siblings and I have worked in RE finance for 20 years so know just enough to look stupid. <g> <<the average house is only about three times the average household income. I wonder what that multiple was fifty years ago. I'll bet it was a bit higher,>> I agree with the part that homes now are 3 times the current average income or thereabouts. But in 1954 my dad built a house on 1 acre with a nice storage shed, well, septic, and "chicken Coop" for $5,000.00 maybe slightly less. 3 bed 1 bath etc. My mom did not work outside the home and he was a shop foreman foreman at a Nickel mine so I figure he made about $500.00 a month. So a home was the same as one year salary. In 1970 in Eugene Oregon you could get a decent home for $20,000 on the backside of college hill. Those homes now sell for about 185-200K. I made $5.00 an hour in a saw mill. So 30-35 years ago a home sold for two times wages. Then two people became wage earners as more and more women entered the work force. So it takes two people earning the dough now and the homes still cost 2.5-3 times annual income. Big trick is two people have to earn the money so it really is 5-6 times one persons income. The middle class slowly but surely get the big SQUEEZE!