The average new house size went from around 1,000 sq ft in 1910 to 1,500 sq ft in 1970, to 2,000 sq ft in 2000 to aroind 2,400 sq ft today. It’s not easy to buy a new small(er) home and housing prices reflect that
When the Corvette was launched in 1953 it cost $3,490. That’s around $39,000 in today’s money. A brand new Corvette will cost you $70,000
A 1970 Datsun 240z was $3,500, which is $28,000 today. You can buy a brand new Mazda Miata or Toyota GR86 for that inflation adjusted amount
A gallon of milk cost $1.32 in 1970. That’s $10
According to the 1970 census, median household income was $8,730. Adjusted for inflation, that’s around $71,000 - which is surprisingly close to the 2022 census’s $70,784 number
So what’s going on and why are people not happy? IMO it’s a mix of
Things are getting nicer, but they’re also getting more expensive. This seems to be a mix of consumer taste and seller side shenanigans. For example, small/mid size cars, which are typically cheap, have had decreasing sales volume for the past 20 years. Enter multiple OEMs de-emphasizing small/mid size cars and leaning into crossovers, which just so happen to cost more. To go back to the earlier housing example, house size has been going up while the average household size is going down. There were 4.5 people per household in 1910. This dropped to 3.15 in 1970 and is down to 2.51 today. In other words, today’s new larger homes have fewer people living in them than 50 years ago. New homes today also tend to be built with nicer furnishings (coming from someone with 1960s builder grade cabinets in their house). Housing is a bit of a mess for a bunch of other reasons too… Zoning, smaller parcel sizes for subdivisions, etc etc
Here are five fast examples from both sides
So what’s going on and why are people not happy? IMO it’s a mix of
It goes beyond the cost of goods and gets back to some level of fairness (or a complete lack there of).