I ran across an article and thread about housing costs compared to 1980. Generally, it follows the median price and interest rates.
I used, the following as sources for data...
- stlouisfed.org
- census.gov
- bls.gov
I'll start with the median house price (stlouisfed.org), accompanied by median house size (square feet-census.gov).
WOW! that is a big jump. According to BLS.gov, that 1,600 square foot home of 1980, should cost about $252,521.37 today.
Yes but the houses are much bigger today... so that $252,521.37 for that 1,600 square foot home should bounce to $378,782.055 for the 2,400 square foot home.
Still about $42,000 over priced, unless something about that median home has changed.
The Census Bureau, tells us that the average double of bathrooms have doubled over that period. Wow! Garages are more prevalent and larger.
Once you wrap your head around that, it does not seem so unreasonable. However, in a time when families are smaller... why are houses so much bigger?
Is it need v want? More than likely, it is want.
Of course, there is the "build it and they will come" mentality. Afterall, developers realized that a 100 X 100 lot requires the same investment in storm/sanity sewers; utilities; streets; lighting, etc. A larger house would gather a larger profit... than a smaller house.
Municipalities in many cases... set development standards on type of housing, etc. With an eye on real estate tax revenue. The bigger house just generates more tax revenue.
And not just from the house.
Which house would more likely have a fairly new family sedan such as a Camry and which would more likely have a Lexus. Compare the type of boats, etc. The list goes on.
So yes, houses cost more, but I would offer the suggestion that pride and appearance prevails over needs.
