I mean that's nice and all but those old folks could buy a house in the 1950s with less than a year's salary. I live near Toronto and the average price of houses here is almost a million dollars. Canadian median income is like 55k per year.
That's not true, it was 3X salary. It's also not apples to apples - do some math on what a 17% interest rate does to your interest portion, vs 3%. Housing prices in the US were low due to it being the youngest nation, and coming off a war that killed of 7% of the global population. Now we have caught up to everywhere else in the world where the average pleb will never own anything.
Interest rates and housing prices are inversely correlated. If interest rates were 17%, houses would be 1/2 of the cost they are today. I'd rather have a cheaper house I could put down 50-60% on than a low interest rate
I mean that's nice and all but those old folks could buy a house in the 1950s with less than a year's salary. I live near Toronto and the average price of houses here is almost a million dollars. Canadian median income is like 55k per year.
That's not true, it was 3X salary. It's also not apples to apples - do some math on what a 17% interest rate does to your interest portion, vs 3%. Housing prices in the US were low due to it being the youngest nation, and coming off a war that killed of 7% of the global population. Now we have caught up to everywhere else in the world where the average pleb will never own anything.
My grandfather bought his house for $3600 in the 1950s and had a salary of $5100.
Interest rates and housing prices are inversely correlated. If interest rates were 17%, houses would be 1/2 of the cost they are today. I'd rather have a cheaper house I could put down 50-60% on than a low interest rate