this post was submitted on 17 May 2025
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It's actually quite difficult to compare like-for-like.
You can take the average or median price, but then this ignores the fact that as more people move towards the big cities, the average house isn't the same thing as it was in 1970.
The other problem is overlooking interest rates. The 70s and early 80s was an extremely volatile time, with typical mortgage rates hitting over 10%, 15%, and over 20% at various points. Taking out a $12,000 mortgage ran the risk of your monthly repayments shooting up to $200 in interest alone, at a time when minimum wage was $267/month.
So, $66 is probably true for a very particular interpretation, but I'm sure you could just as easily find a way for it to come out as $65 or $67.
None of the above should be read as a defence of capitalism or of landlords, just pointing out some details that often get missed.
Fixed rate mortgages have been standard in the US since the 1930s
Variable rates are still available and common. They tend to be slightly lower rates than fixed rate mortgages due to volatility risks.
I interpreted their remark to be more about the fixed rate though. The $20,000 house could have a 20% fix interest loan.
They did say "shooting up", so maybe they are presuming variable rate mortgages.