Cost Of Living Increases 1957 To 2007

[Teddy B 17,252]

I found this article while researching the tax info of 1957 from another thread. This is quite an eyeopener how times have changed, especially our spending habits. It's a good read.

Here comes the statistic I have been leading up to all this time. In 1957, the average price for a house in the United States was $2,330. Can you believe that! A house and a car cost roughly the same thing! I know normal people who pay $2,330 per month to rent an apartment. Just 50 years ago, this figure represented the average price for a house in this country.

Now consider what the average price is today (not taking into account the current depressed prices due to the sub-mortgage crises); which is $212,800. The average price of a house fifty years ago represented 50% of the annual income for the average family. The median price today is four times MORE than the average family makes in a year. This statistic explains why Americans today are saddled with a debt load that destroys marriages and causes the current unheard of foreclosure rates. Families simply cannot afford the home they live in. This is NOT a good thing.

My link

Edited September 7, 2012 by Teddy B

[Ban Hammer 13,678]

in my lifetime, i saw my parents buy a 4 bedroom, 2 bath/2 car garage all brick home for 35k (year 1972).

same house now is mid to upper 100k. and 35k is about mid range for a vehicle.

i wonder what a house or car (if they exist then) will cost in another 40 years

Edited September 7, 2012 by charles!

[Teddy B 17,252]

in my lifetime, i saw my parents buy a 4 bedroom, 2 bath/2 car garage all brick home for 35k (year 1972).

same house now is mid to upper 100k. and 35k is about mid range for a vehicle.

i wonder what a house or car (if they exist then) will cost in another 40 years

Another thing is location, put that same house in my neighborhood and it's worth at least 400K. My wife could not believe the housing costs in Mass when she first moved here, she still has a hard time excepting it.

Edited September 7, 2012 by Teddy B

[Penny Lane 8,159]

I am lucky to be in the area I'm in, apparently. We bought a house in 2010. 4 bedrooms, 2 bathrooms, 2 car garage, single family home for $145k.

Can't imagine paying 400k for it.

[Teddy B 17,252]

I am lucky to be in the area I'm in, apparently. We bought a house in 2010. 4 bedrooms, 2 bathrooms, 2 car garage, single family home for $145k.

Can't imagine paying 400k for it.

The cost of living in and around the big cities on the east coast is ridiculously high. I live about 2.5 miles from Boston, the closer one gets the higher the cost of living.

[JohnR! 5,495]

The cost of living in and around the big cities on the east coast is ridiculously high. I live about 2.5 miles from Boston, the closer one gets the higher the cost of living.

It is equally scary on the west coast, real estate bubble bust and all...

[I AM NOT THAT GUY 5,715]

I bought my place in 1988. Now it is worth three time what I paid for it, instead of five times, like it was in 2008. But, since it is paid off and I own it free and clear, it doesn't really matter now, does it?

[JohnR! 5,495]

I am lucky to be in the area I'm in, apparently. We bought a house in 2010. 4 bedrooms, 2 bathrooms, 2 car garage, single family home for $145k.

Can't imagine paying 400k for it.

If you want to gag, look at similar houses in the 950XX and 941XX area codes...

[kytwell 179]

Good read. Freddie Mac which was est. 1970 and we went off the gold standard in 1971.

I wonder how much those two things did to contribute to the issues brought up in article?

[Xanax 349]

American's are LUCKY their house prices and the cost of living is still so low!

[Penny Lane 8,159]

American's are LUCKY their house prices and the cost of living is still so low!

Right. Tell that to the people who can't PAY that cost of living on a daily basis.

[Xanax 349]

Right. Tell that to the people who can't PAY that cost of living on a daily basis.

I am not disputing the cost of living nor the fact some people struggle, but there a people in countries all over the world with all different socio-economic standards for living.

Coming from a place where you can't get a house for less that $350,000 (and it's not even nice at that price) I feel exceptionally lucky to come to America where a $300,000 in the majority of places is a nice house AND the cost of groceries is 1/2 of what I would pay back home

[Penny Lane 8,159]

I am not disputing the cost of living nor the fact some people struggle, but there a people in countries all over the world with all different socio-economic standards for living.

Coming from a place where you can't get a house for less that $350,000 (and it's not even nice at that price) I feel exceptionally lucky to come to America where a $300,000 in the majority of places is a nice house AND the cost of groceries is 1/2 of what I would pay back home

Cool. Glad it's working out for you. I come from a city that was fairly expensive to live in as well. However, I don't necessarily think Americans in general should feel lucky when so many of them are struggling so much.

[Xanax 349]

Cool. Glad it's working out for you. I come from a city that was fairly expensive to live in as well. However, I don't necessarily think Americans in general should feel lucky when so many of them are struggling so much.

People everywhere struggle. Not just in the US unfortunately

I feel amazingly lucky to be able to buy a lovely home for $300,000!

For everything I dislike about America, I find something to be thankful for.

Sorry you find yourself where the cost of living does not really fit you or it is very expensive, that sucks, but what my husband and I found is their is reasonably priced places to live in almost every state.

Have a great day

Edit: I had no idea Chicago was super expensive compare to other areas of the US. Thanks for educating me.

Edited September 7, 2012 by Xanax

[Penny Lane 8,159]

People everywhere struggle. Not just in the US unfortunately

I feel amazingly lucky to be able to buy a lovely home for $300,000!

For everything I dislike about America, I find something to be thankful for.

Sorry you find yourself where the cost of living does not really fit you or it is very expensive, that sucks, but what my husband and I found is their is reasonably priced places to live in almost every state.

Have a great day

Edit: I had no idea Chicago was super expensive compare to other areas of the US. Thanks for educating me.

I should clarify: where I am now is not so expensive. The cost of living is reasonable. Where I'm from (Ottawa, Canada) it get can quite expensive.