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.
Negs01 t1_irhn5mt wrote
Reply to comment by 857477459 in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid
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.
​
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.
​
This is a little dated, but assuming the trend did not reverse, median home sizes have increased at least 66% since the early 1970s.