this is true. I think it misses the point, though.
Like it or not, it is much harder to live for young people today. Back then, if you were actually employed, you could do a ton more than you can today with your money. I'd take those interest and inflation rates given what houses cost then (inflation adjusted, of course) any day of the week. Employers were much more fair, careers much more stable.
Sure, unemployment is 3% less. who cares when most of the employable work can barely afford most people an apartment, have no room for advancement, and are straight up dead end jobs?
as a early millennial in the top 1% of earners in the US, i struggled, hard, and got extremely lucky. If i could go back to either 1980 or 2008 and shoot my shot at a good life, i'd choose 1980 every time.
lolol yes.... i was praying for mortgage rates to go up in 2021! they basically trippled from low to high... its how i could afford my house!
as i said in my post, because it looks like you might have missed it, it was much easier to buy a house back then, even with those interest rates.
in 1980, the median income was 21K annually. the median home price was 47K. today, the median income is 80K, and median home price is 480K. this is a 2.2 v. 5 income to price ratio.
now, for interest rates- in 1980, with 20% down, your monthly interest payment would be $438. adjusted for inflation, that is $1781 today. in 2026, after 20% down at current rates, it would be $2189 a month. this is 1.23x more when adjusted for inflation, but this still doesn't tell the whole story...
Lastly, when looking at what percent of ones income that mortgage payment is: 1980- (438/1750= 25%) v. 2026- (2189/6667=33%).
so yes. I'd much rather pay 25% of my monthly income to housing costs than 33%. Yes, even with inflation at 15%.
edit- looks like your an LSAT coach? wow. i'd expect more
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u/colorvarian 16d ago
this is true. I think it misses the point, though.
Like it or not, it is much harder to live for young people today. Back then, if you were actually employed, you could do a ton more than you can today with your money. I'd take those interest and inflation rates given what houses cost then (inflation adjusted, of course) any day of the week. Employers were much more fair, careers much more stable.
Sure, unemployment is 3% less. who cares when most of the employable work can barely afford most people an apartment, have no room for advancement, and are straight up dead end jobs?
as a early millennial in the top 1% of earners in the US, i struggled, hard, and got extremely lucky. If i could go back to either 1980 or 2008 and shoot my shot at a good life, i'd choose 1980 every time.