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      10-14-2019, 01:31 PM   #107
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Quote:
Originally Posted by SteveinArizona View Post
I'm glad you graduated with no student debt but your anecdotal example doesn't prove anything.

"Inflation Examples
For example, the Bureau of Census reports that the average price of a new home in May 1999 was $193,900. According to the inflation calculator, that price today should be $298,774. The same report places the average sale price for May 2019 at $377,200, more than 26 percent higher than the price when accounting for inflation alone.
Sigh. You are looking at sales prices alone. Apple + 20 does not equal elephant. You have to calculate it based on square foot. If 10 people all bought a Honda Civic 20 years ago and then replaced it with a Lexus, you can't infer from that alone that car prices are more expensive.

Average home size in 1999: 2,213
Average home size in 2018: 2,765

Increase in home size between the two periods: 25.4%

There is your 26% percent(ish).

If you look at over a longer period of time, you will see an even more dramatic variance.

Home prices are not more now than in the past - they just appear so since people want 'more' house.
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