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> Our greatest ongoing financial priority is our home, with the average cost of a single-family house totaling $428,700,” the study states. “Americans tend to c
by acover 3y ago
> Our greatest ongoing financial priority is our home, with the average cost of a single-family house totaling $428,700,” the study states. “Americans tend to change residences every 15 years, pushing the average amount borrowed on housing to a staggering $1.5 million in a lifetime.”
Why are they counting homes like that? If I sell and buy my investments in my 401k, they don't count it twice.
- _ea1k 3y agoI'm guessing because of the tendency to buy to a payment. People don't generally move to the same price range each time. Unfortunately, there's a tendency for this to become a hidden robber of wealth over time.
- Glyptodon 3y agoSo if you get a 30 year mortgage on $330k loan at 6% the total cost of the loan is $700-something-k. Go through three houses, reseting the 30 years a couple times, maybe while getting a bigger house, end up paying for 50 years, and it doesn't seem that hard to hit a million something. That said, I super suspect the numbers might be averages of a multi-modal distribution...
- em500 3y agoBecause they're counting spending, not consumption. This is incidentally why house prices are not directly included in the CPI basket of goods: neither the purchase price of a house, nor the monthly payments are what people consume (= used up) in housing per year.
- brailsafe 3y agoIt may (only because this is a specifically American thread) be worth mentioning that Canada does include shelter in the CPI.
- deleted 3y ago[deleted]