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857477459 t1_irgo4jp wrote

Reply to comment by burn-it-all- in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid

This is why all those posts about how much less houses used to cost need to be taken with a grain of salt. House prices are so high in large part because interest rates were so low for so long.

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Negs01 t1_irhn5mt wrote

Indeed, construction costs have likely increased for various reasons, but I would bet that low interest rates along with other subsidies (lowering FHA standards for example) have been the primary drivers of increased home costs.

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I'm curious how much the price has increased in terms of square feet though. Average home price has gone up, but so has average home size.

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This is a little dated, but assuming the trend did not reverse, median home sizes have increased at least 66% since the early 1970s.

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Neat-Programmer2722 t1_irigxzi wrote

In my area houses and affordable housing was not being built at a proper rate due to a lot of factors but yes labor material costs were part of that.

Now the prices are so high there is a housing build rush however there is an extreme shortage of labor and extreme shortage of housing. Supply and demand.

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Sartres_Roommate t1_iri4tjq wrote

That is a gross oversimplification at best....and that is being generous.

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