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> I get paid more than my non tech peers yet still functionally have less spending power than a 25 year old from 30 years ago This seems like some non-generic

> I get paid more than my non tech peers yet still functionally have less spending power than a 25 year old from 30 years ago This seems like some non-generic case specific to your situation and not representative of the average experience. The median income in 1994 for over-25-year-olds (men only!) was $25,465 [0], women was less than half of that. Let's go with the figure for men for the sake of discussion. $25,465 in 1994 is the buying power of $55k today [1]. $55k is the 56th percentile [2], so right where we'd expect it to be. --- 1994: median home price $142,200 [3], interest rate 30-year fixed: 8.38% [4] Principal balance $113,760 @ 8.38%, payment (P&I): $865, or 3.4% of annual income --- 2024: median home price $384,500 [5], interest rate 30-year fixed: 7% [6] Principal balance $307,600 @ 7%, payment (P&I): $2,046, 3.7% of annual income --- Opinion incoming: I think there are 2 things that make 'today' seem more expensive than 'back then': implacable consumerism, and the natural change of places over time (ie, gentrification & co). w/r/t consumerism, the load on both 'necessary' and discretionary spending has increased big-time - people were not generally paying for broadband, smartphones, gaming consoles, home espresso machines, soundbars, portable speakers, media players, printers/copiers/scanners, I could go on forever. Look around you and count how many things straight-up didn't exist in 1994 (or were reserved for the ultrawealthy or for business). We could do without them today, but it would feel really bad, as if we're not participating in society or making use of its advancement. w/r/t gentrification, many places today are more desirable than they used to be, and their increase in price is a function of demand rather than of inflation, so it feels like the economics of living got away from people who weren't already bought in. But it's not that "everything" got so much more expensive, it's that, for example, Akron OH used to be more expensive than San Jose (!!) because farming was the center of industry. Now the world changed and what used to be a pretty rural town full of fruit trees is the most expensive metro in the country. It's not because "houses got more expensive" per se, it's that the world changed. [0] https://nces.ed.gov/programs/digest/d96/d96t376.asp https://nces.ed.gov/programs/digest/d96/d96t376.asp [1] https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=25%2C465&year1=199401&year2=202402 https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=25%2C465&year1... [2] https://dqydj.com/income-percentile-calculator/ https://dqydj.com/income-percentile-calculator/ [3] https://www.huduser.gov/periodicals/ushmc/winter2001/histdat08.htm https://www.huduser.gov/periodicals/ushmc/winter2001/histdat... [4] https://www.mpamag.com/us/mortgage-industry/guides/historical-mortgage-rates-in-the-usa-highest-high-and-lowest-lows/433237#:~:text=The%20highest%20mortgage%20rate%20in%20the%20last%2030%20years%20was,%25%2C%20according%20to%20Freddie%20Mac https://www.mpamag.com/us/mortgage-industry/guides/historica.... [5] https://www.bankrate.com/real-estate/existing-home-sales/ https://www.bankrate.com/real-estate/existing-home-sales/ [6] https://www.bankrate.com/mortgages/mortgage-interest-rates-forecast/ https://www.bankrate.com/mortgages/mortgage-interest-rates-f...

selimthegrim 3y ago
Where does the farming come in for Akron - because everything had rubber tires?
- alephnerd 3y ago
  San Jose. San Jose was a farming town until the 1980s. Most of SJ's neighborhoods (eg. Alviso, Lick, etc) were actually small farm towns that merged into the City of San Jose in the 70s. That's why SJ feels kind of bland - it's a very new city, sort of like Phoenix, Dallas, and much of Los Angeles.
art-not 3y ago
I'm Canadian for what it's worth. My mother who had a GED was able to purchase a house by my age. I can't purchase a house anywhere in southern Ontario at the moment. This fact is echoed across the majority of the country. My brother had to move to northern Alberta to be able to afford a house that had enough capacity for his family. And that naturally also changed the availability of social and job options
- Domenic_S 3y ago
  I dunno what qualifies as south ON, but I see 144 houses for sale from $50-300 CAD south of Huntsville. Your point however is (less charitably) put as "I can't purchase a house where I want the house to be, with the specs that I want", which is different than not being able to afford any house anywhere. My parents also purchased a house with modest income when I was young. But it had fraying electrical (knob & tube!), peeling paint, 1 bathroom, no A/C, a wood-burning fireplace for heat, and was 45 minutes from where they had rented/liked to live. The place had its charms, they put sweat equity into it for many years, and I think of it fondly - but it was still a huge compromise, and by today's strict lending standards was probably not even able to be financed based on hazards alone. I am sure they would have preferred to purchase a house with bay windows overlooking the ocean like they had been renting, but they could afford something that was inland and needed a lot of work. I do not think they were unique in this way - I wager a lot of 'my parents bought a house in the 80s, dad was an artisanal pencil sharpener and mom was a ferret breeder' stories are actually more like this one. My point is, I am by default unconvinced when an otherwise seemingly successful person says they can't afford to buy, even in an expensive place like Toronto or SF. As far as I can tell it just means they haven't lowered their standards enough yet. I have compromised on every home I've bought; in fact I entered the market a lot later than I should have because as a first-timer I wasn't ready to compromise enough. That probably cost me half a mill in appreciation over the years.

selimthegrim 3y ago

Where does the farming come in for Akron - because everything had rubber tires?

alephnerd 3y ago
San Jose. San Jose was a farming town until the 1980s. Most of SJ's neighborhoods (eg. Alviso, Lick, etc) were actually small farm towns that merged into the City of San Jose in the 70s. That's why SJ feels kind of bland - it's a very new city, sort of like Phoenix, Dallas, and much of Los Angeles.

art-not 3y ago

I'm Canadian for what it's worth. My mother who had a GED was able to purchase a house by my age. I can't purchase a house anywhere in southern Ontario at the moment. This fact is echoed across the majority of the country. My brother had to move to northern Alberta to be able to afford a house that had enough capacity for his family. And that naturally also changed the availability of social and job options

Domenic_S 3y ago
I dunno what qualifies as south ON, but I see 144 houses for sale from $50-300 CAD south of Huntsville. Your point however is (less charitably) put as "I can't purchase a house where I want the house to be, with the specs that I want", which is different than not being able to afford any house anywhere. My parents also purchased a house with modest income when I was young. But it had fraying electrical (knob & tube!), peeling paint, 1 bathroom, no A/C, a wood-burning fireplace for heat, and was 45 minutes from where they had rented/liked to live. The place had its charms, they put sweat equity into it for many years, and I think of it fondly - but it was still a huge compromise, and by today's strict lending standards was probably not even able to be financed based on hazards alone. I am sure they would have preferred to purchase a house with bay windows overlooking the ocean like they had been renting, but they could afford something that was inland and needed a lot of work. I do not think they were unique in this way - I wager a lot of 'my parents bought a house in the 80s, dad was an artisanal pencil sharpener and mom was a ferret breeder' stories are actually more like this one. My point is, I am by default unconvinced when an otherwise seemingly successful person says they can't afford to buy, even in an expensive place like Toronto or SF. As far as I can tell it just means they haven't lowered their standards enough yet. I have compromised on every home I've bought; in fact I entered the market a lot later than I should have because as a first-timer I wasn't ready to compromise enough. That probably cost me half a mill in appreciation over the years.