You were making right about the median salary in 1974 or just below $12,800. Today for the area it is about $58,000. So median salaries are about about 4.5 times 1974
$35,000 for a house was just a hair under average. Now average house price in Texas is about $422,000. A 12x increase. Median price is $340,000 so a 9.7x increase.
It is much harder to buy a house now than in 1974.
In 1974 I was making about $400/mo in the Army. Was sending $150 to the family. $250 monthly allowed me to travel all over Asia and buy top level stereo equipment
Inflation in housing prices seems to be scandalous.
No builder can get away with it without Lender cooperation.
So why has our mortgage system allowed this?
If theyâre getting paid a % of the home price, the mortgage company certainly wonât complain about increased home prices.
Iâm told by an electrician who does a lot of new home building that regulations have been a major factor in the price increases.
Recently we rented a home that was less than 3 years old while waiting to move to permanent home.
Easily one of the cheapest things we have ever seen. âBuilder Gradeâ everything, shoddy construction at every level, electrical system that shorted out part of the house, the A/C had a hole in its front and was spewing air into the attic.
We didnât stay long. Realtor revealed that the owner paid $392,000 for it, brand new.
At a minimum that price was $100,000 too much.
He got a loan for it. Our âsystemâ approved the purchase.
Lenders are happy to give out loans for more than needed or reasonably affordable if it means they get more money and or a foreclosure out of it.
It is consistent in most aspects of personal business - get as much out of a buyer (regardless if home, car, etcâŠ) as possible, especially if backed with a collateral object. By allowing unreasonable loans, it throws more money into the system causing prices to go up. - homes, cars (though I think they have not been as used), college education, health care, etc⊠Free market does not lower prices.
Buyers can lower home prices. By not buying.
That is going on in, Texas,and Florida have too many houses for sale right now.
The Law of Supply and Demand will lower housing prices.
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