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> $50k -> $1,049,800 You can't look at the price increase for the same house without accounting for the changes in the neighborhood and surrounding areas. A

> $50k -> $1,049,800 You can't look at the price increase for the same house without accounting for the changes in the neighborhood and surrounding areas. A neighborhood increases in desirability, it now costs more to live in that nicer neighborhood. The population of a city increases, such that you now have to live farther away from the city to find comparably priced real estate etc... That's why I said if you want to compare, you'd need to find out how much it would cost to build a comparable house in a neighborhood that is comparable to the neighborhood as it was 40 years ago.

TuringNYC 3y ago
I agree with you about trying to control for neighborhood changes, I dont think that is done here. There is gentrification and that admittedly makes the numbers harder to compare. That said, I would totally disagree that the real apples-to-apples comparison would be to find an equivalent home further away. That literally proves my original argument -- that the current generation has to work the same for less. That our parents could live in the city while we commute from the exurbs.
- sarchertech 3y ago
  You have to control for the city changing is well because that directly impacts the desirability of the neighborhood. In the extreme case, if a city has increased population, such that what used to be considered a suburb is now as dense and desirable as what used to be the city center, while you may be moving farther from the city center, you might not be farther from an area equivalent to the city center from decades ago. In the case of New York, desirability of the city (not just the specific suburb you're comparing) has increased massively. The only way to find a comparable neighborhood, that is a comparable distance to a city center that is as desirable as Manhattan or Brooklyn was in the 1980, is to either look farther out or look at an area near a different city.

TuringNYC 3y ago

I agree with you about trying to control for neighborhood changes, I dont think that is done here. There is gentrification and that admittedly makes the numbers harder to compare. That said, I would totally disagree that the real apples-to-apples comparison would be to find an equivalent home further away. That literally proves my original argument -- that the current generation has to work the same for less. That our parents could live in the city while we commute from the exurbs.

sarchertech 3y ago
You have to control for the city changing is well because that directly impacts the desirability of the neighborhood. In the extreme case, if a city has increased population, such that what used to be considered a suburb is now as dense and desirable as what used to be the city center, while you may be moving farther from the city center, you might not be farther from an area equivalent to the city center from decades ago. In the case of New York, desirability of the city (not just the specific suburb you're comparing) has increased massively. The only way to find a comparable neighborhood, that is a comparable distance to a city center that is as desirable as Manhattan or Brooklyn was in the 1980, is to either look farther out or look at an area near a different city.