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What has the square footage and amenities for single family homes done over the same time frame? You aren't comparing apples to apples... https://www.property

What has the square footage and amenities for single family homes done over the same time frame? You aren't comparing apples to apples... https://www.propertyshark.com/Real-Estate-Reports/2016/09/08/the-growth-of-urban-american-homes-in-the-last-100-years/ https://www.propertyshark.com/Real-Estate-Reports/2016/09/08... Not to mention the average household size (number of people) has been dropping...so the square foot per household member is up drastically...

oneoff786 5y ago
This article says homes are 74% larger, but compares to 1910. Not sure why the cost per household member should matter all. I didn’t get a family size discount on my home.
- jacobr1 5y ago
  > I didn’t get a family size discount on my home You do though. The cost of kitchen for a couple without kids, and one for a family of 5 is roughly the same. You might have more square footage overall for house, with more people, but the construction costs are concentrated on the shared spaces like kitchens or even things like living living rooms where square footage will scale sub-linearly with the number of people in the household.
  - j_walter 5y ago
    Not to mention there used to be more multigenerational homes...therefore more people to pay the cost.
  - oneoff786 5y ago
    That has no effect on the price of single family homes. You’re bringing in a very different metric.
  - bally0241 5y ago
    That's literally not a discount though.
bko 5y ago
I would also note that you have to consider mortgage rates. They're on the rise now and I'm not sure if it'll still hold, but last time I looked at it the overall payment is down. In 1987, mortgage rates were about 15%. To put that into perspective, a $100k 30 year fixed rate mortgage would cost you $1,543/mo at 18.45% and only $442/mo at 3.38%. I only hope that rates going up will deflate the real estate prices but so far they don't appear to be budging https://mleverything.substack.com/p/buying-a-home-in-the-us-is-increasingly-attainable-31bbae745993?s=w https://mleverything.substack.com/p/buying-a-home-in-the-us-...
- imtringued 5y ago
  People compete on monthly payments not the actual house price. Only people who can pay upfront compete on the house price. Changing interest doesn't change how many people are willing to live in a location. Your monthly payment will just go to the bank instead.
kiloDalton 5y ago
Not an expert, but I did read the article. The point of the "Case-Shiller" metric is that it is computed on the basis of the same exact property changing hands in different time periods. That way it controls for trends in the product pool. Or as the article put it: Case-Shiller requires two transactions for the same house,” Lazzara said... It controls for the variability in the quality and size of the homes sold from year to year by measuring the change between houses that sold in one period with the prices of the same houses when they last changed owners. “The repeat sales mechanism is a way of adjusting for the mix of product so that you really are getting an apples-to-apples comparison,” Lazzara said.
- dzhiurgis 5y ago
  Does it account for improvements in electrical, air con, comms? Regardless, we don’t need a fancy index to observe how fucked the market is.
disgruntledphd2 5y ago
The index referred to in the article uses repeat sales of the same house, so should be insulated from these effects.

oneoff786 5y ago

This article says homes are 74% larger, but compares to 1910. Not sure why the cost per household member should matter all. I didn’t get a family size discount on my home.

jacobr1 5y ago
> I didn’t get a family size discount on my home You do though. The cost of kitchen for a couple without kids, and one for a family of 5 is roughly the same. You might have more square footage overall for house, with more people, but the construction costs are concentrated on the shared spaces like kitchens or even things like living living rooms where square footage will scale sub-linearly with the number of people in the household.
- j_walter 5y ago
  Not to mention there used to be more multigenerational homes...therefore more people to pay the cost.
- oneoff786 5y ago
  That has no effect on the price of single family homes. You’re bringing in a very different metric.
- bally0241 5y ago
  That's literally not a discount though.

bko 5y ago

I would also note that you have to consider mortgage rates. They're on the rise now and I'm not sure if it'll still hold, but last time I looked at it the overall payment is down. In 1987, mortgage rates were about 15%. To put that into perspective, a $100k 30 year fixed rate mortgage would cost you $1,543/mo at 18.45% and only $442/mo at 3.38%. I only hope that rates going up will deflate the real estate prices but so far they don't appear to be budging https://mleverything.substack.com/p/buying-a-home-in-the-us-is-increasingly-attainable-31bbae745993?s=w https://mleverything.substack.com/p/buying-a-home-in-the-us-...

imtringued 5y ago
People compete on monthly payments not the actual house price. Only people who can pay upfront compete on the house price. Changing interest doesn't change how many people are willing to live in a location. Your monthly payment will just go to the bank instead.

kiloDalton 5y ago

Not an expert, but I did read the article. The point of the "Case-Shiller" metric is that it is computed on the basis of the same exact property changing hands in different time periods. That way it controls for trends in the product pool. Or as the article put it: Case-Shiller requires two transactions for the same house,” Lazzara said... It controls for the variability in the quality and size of the homes sold from year to year by measuring the change between houses that sold in one period with the prices of the same houses when they last changed owners. “The repeat sales mechanism is a way of adjusting for the mix of product so that you really are getting an apples-to-apples comparison,” Lazzara said.

dzhiurgis 5y ago
Does it account for improvements in electrical, air con, comms? Regardless, we don’t need a fancy index to observe how fucked the market is.

disgruntledphd2 5y ago

The index referred to in the article uses repeat sales of the same house, so should be insulated from these effects.