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A comment on The Rise of the Forever Renter Class. Parent comment

Re:The Rise of the Forever Renter Class by maxsilver on Tuesday May 07, 2024 @03:49PM (#40290703)
Sure, but in 1995 you could also get a nice house for like 40k. An equivalent home today costs about 400k.

8% interest on 40k is only $63k interest paid (A 1995 home had a total cost of $123k)

8% interest on 400k is $633k (that same home in 2024 has a total cost of $1.2 million dollars)

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Re:The Rise of the Forever Renter Class by philipkglass on Tuesday May 07, 2024 @07:30PM (#40292707)
You wouldn't expect to get a nice house for $40,000 in 1995 in the United States. The median sale price for a house was $133,000 in Q1 1995:

https://fred.stlouisfed.org/series/MSPUS

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Re:The Rise of the Forever Renter Class by listenallyall on Tuesday May 07, 2024 @09:22PM (#40293405)
> in 1995 you could also get a nice house for like 40k

Ummm, where?

And the parent comment was about the low interest rate ("nearly free money") not the amount.

What I do know is that many professional-class students can start their careers, i.e. first-year salary, at $100k and often significantly more. In 1995 nobody earned even $50k straight out of school. Economy-wide inflation numbers are weighed down by low-paying jobs, therefore greatly under-estimate how much professional (i.e. most likely to be home buyers) salaries and early earning potential has grown over the past 30 years.

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