Interesting housing value graph

[High Plains Mopars]

Looking at that graph something just looks amiss.

If you look at the specifics of price, very, very few people could afford a $100k house in the 1890s. In my neighborhood, those houses that sold for $100k 115 years ago are now selling for 2.5-4.5 million. So looking at the comparative amenities for square footage and the related lifestyles that could afford housing equal to the base year and relating that to a comparable buyer's purchasing power and desire today, I don't think he is comparing apple to apples.

Locations have a huge impact on the values and since he didn't specify, I'd say his graph is an overall composite of the whole US housing market. Individual markets won't necessarily adhere to this graph as some have taken huge dumps and some have had huge gains.

[andrewb70]

Looking at that graph something just looks amiss.

If you look at the specifics of price, very, very few people could afford a $100k house in the 1890s. In my neighborhood, those houses that sold for $100k 115 years ago are now selling for 2.5-4.5 million. So looking at the comparative amenities for square footage and the related lifestyles that could afford housing equal to the base year and relating that to a comparable buyer's purchasing power and desire today, I don't think he is comparing apple to apples.

Locations have a huge impact on the values and since he didn't specify, I'd say his graph is an overall composite of the whole US housing market. Individual markets won't necessarily adhere to this graph as some have taken huge dumps and some have had huge gains.

The 100K is in todays dollars.

Andrew