LookieNoNookie -> RE: Why do we fear taxes? (7/20/2012 2:18:27 PM)
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ORIGINAL: Musicmystery quote:
ORIGINAL: MrRodgers Why can't I buy a typical single family home and pay for it in about 6 years as it was back in the late 1800's ? Well for starters, the 1890s was a severe depression in the U.S., second only to the Great Depression of the 1930s. In in 1890, the average worker made $1.53 per day for 279 days per year for a total of $479 for the year. Today, the average worker makes $51,413. That's 107 times higher. The average house costs $242,300 (varying greatly by location, of course). But the housing cost index from 1890 to today is only 55 times higher, from 100 to 5500. [image]http://cdn.theatlantic.com/static/mt/assets/business/assets_c/2011/03/RealHousingPrices_1890_2010_log-thumb-570x406-45789.png[/image] How did people pay them off in six years? They didn't. The black line, incidentally, is housing growth adjusted for inflation. Essentially flat. Actually MM, I think he may be right. I don't feel terribly motivated to do the research on it but, I saw an article once...a year or so ago, it showed a "typical" house of the late 1800's for a family of 6+ (keep in mind, you didn't go to work...work was outside your front or back door). If I remember, the (typical) house for 6 - 8 - 10....was about 650 sf, zero insulation, single pane windows, no caulking around same, no foundation, steeply pitched roof ("bedrooms", if you could call them that, were in that section...warmer in the winter). You could probably build that place today (in today's dollars) on any dry hard surface for about $10,000.00 - $20,000.00 if you used a contractor. No running water (ergo, no cost of a water system), no asphalt tab roofing (lots of leaks in the rainy season), no 65 inch flat screen TV or internet, no telephone cabling, no garbage disposal, Onyx counter tops, robot vacuums....etc. So, yeah...I can see someone paying off a house in the late 1800's in 6 years, maybe even 6 months in relative terms. I think they still have some of these available in the Ozarks. Might even be some good deals. And then....there's always Detroit. Those you can pay off in about 6 weeks...if you live that long in those neighborhoods.
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