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: Sweet Ol who wrote (102270)	9/20/2009 9:28:31 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

Since 1955 the size and amenities in American homes has increased in direct proportion to the decline in inflation-adjusted construction cost over this period of time. In other words, consumers have continued to spend the same inflation-adjusted price for the construction portion of their homes, but are receiving better value as costs have declined. The change in home prices has been entirely a function of the price paid for the completed lot. As a result it should not be surprising that while house size has increased, lot size has declined. Yet even with this reduction in size, inflation-adjusted home prices have increased. This is a function of supply and demand. With each expansion of the debt bubble or income tax subsidy for real estate, real estate prices have ticked higher. .