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The first house listed gives a price range from $1,553 to $3,242. Taking the higher end, $3,242 in 1920 is worth $51,110.29 today [1]. [1] https://www.in2013do

by kleiba 2y ago

The first house listed gives a price range from $1,553 to $3,242. Taking the higher end, $3,242 in 1920 is worth $51,110.29 today [1]. [1] https://www.in2013dollars.com/us/inflation/1920?amount=3242 https://www.in2013dollars.com/us/inflation/1920?amount=3242

Aeolun 2y ago
How?! That’s not anywhere near what you pay for a house now. Can the real price (cost to build) really have multiplied by a factor of 10?
- worstspotgain 2y ago
  That house looks to be around 2000 sqft, i.e. about $25/sqft in current dollars. There are three effects at play, roughly: $25 => $50 due to stricter codes and higher scarcity of some materials $50 => $100 due to higher wages everywhere in the country $100 => $200 to $1500 due to intentional supply restrictions in specific areas The last effect includes a whole range of artificial shortage policies (height and volume limits, zoning, red tape, ...) It also includes the "zooming inflation" on local wages due to the housing shortage's effect on the cost of living.
- LeonM 2y ago
  I have been researching that same question lately. Most of it comes down to: - Modern houses have much more systems installed. Think HVAC, electricity, hot/cold water, sewage, lightning, networking, etc. - Safety and quality requirements/expectations of houses have improved. Think thermal insulation, sound insulation, fire safety, roof load, wind resistance, etc. - Material quality and sustainability have improved. Think no more asbestos, less flammable materials, no more lead in paint and pipes, etc. These were all used because they were very cheap, safer alternatives are often more expensive. - Wages and safety of workers have improved (for them) significantly. - Material prices (delivered) have gone up significantly. Partially due to better wages and safety of workers in the supply chain, but also due to scarcity (for example: our population grows faster than trees).
  - worstspotgain 2y ago
    All of these are true, but they only cover about $100/sqft (see my sibling message.) Production efficiency and technology have also improved for a lot of stuff, bringing prices down at the same time that they were going up. When people complain about the cost of housing, they're usually not talking about the first $100/sqft, but about the other $100-$1400.
- erickj 2y ago
  These houses still had to be built, hooked up to plumbing, wired for electricity, have a lot cleared and excavated, concrete poored... Also you still need to decorate and provide appliances. Add all that in and you'll see theres a few 100k worth of additional work not in the kit So that $52k price is really just for building materials and plans, but doesn't include land, permits, building costs.
  - worstspotgain 2y ago
    The 1920 all-included price would not have been tripled. Consider that the median US house price in 1940 was $2938, or $66K in current dollars.
phyzix5761 2y ago
That's only for the materials and plan. You have to build it yourself. See my response to the parent comment. You can still get homes like this today for $15k or less [1]. [1] https://www.americanmadehousekits.com/house_kits https://www.americanmadehousekits.com/house_kits
- kleiba 2y ago
  Yes, I found your sibling comment very interesting. Btw, I didn't want to imply anything with my comment above, just put the price into perspective.

by kleiba 2y ago

Aeolun 2y ago

How?! That’s not anywhere near what you pay for a house now. Can the real price (cost to build) really have multiplied by a factor of 10?

worstspotgain 2y ago
That house looks to be around 2000 sqft, i.e. about $25/sqft in current dollars. There are three effects at play, roughly: $25 => $50 due to stricter codes and higher scarcity of some materials $50 => $100 due to higher wages everywhere in the country $100 => $200 to $1500 due to intentional supply restrictions in specific areas The last effect includes a whole range of artificial shortage policies (height and volume limits, zoning, red tape, ...) It also includes the "zooming inflation" on local wages due to the housing shortage's effect on the cost of living.
LeonM 2y ago
I have been researching that same question lately. Most of it comes down to: - Modern houses have much more systems installed. Think HVAC, electricity, hot/cold water, sewage, lightning, networking, etc. - Safety and quality requirements/expectations of houses have improved. Think thermal insulation, sound insulation, fire safety, roof load, wind resistance, etc. - Material quality and sustainability have improved. Think no more asbestos, less flammable materials, no more lead in paint and pipes, etc. These were all used because they were very cheap, safer alternatives are often more expensive. - Wages and safety of workers have improved (for them) significantly. - Material prices (delivered) have gone up significantly. Partially due to better wages and safety of workers in the supply chain, but also due to scarcity (for example: our population grows faster than trees).
- worstspotgain 2y ago
  All of these are true, but they only cover about $100/sqft (see my sibling message.) Production efficiency and technology have also improved for a lot of stuff, bringing prices down at the same time that they were going up. When people complain about the cost of housing, they're usually not talking about the first $100/sqft, but about the other $100-$1400.
erickj 2y ago
These houses still had to be built, hooked up to plumbing, wired for electricity, have a lot cleared and excavated, concrete poored... Also you still need to decorate and provide appliances. Add all that in and you'll see theres a few 100k worth of additional work not in the kit So that $52k price is really just for building materials and plans, but doesn't include land, permits, building costs.
- worstspotgain 2y ago
  The 1920 all-included price would not have been tripled. Consider that the median US house price in 1940 was $2938, or $66K in current dollars.

phyzix5761 2y ago

That's only for the materials and plan. You have to build it yourself. See my response to the parent comment. You can still get homes like this today for $15k or less [1]. [1] https://www.americanmadehousekits.com/house_kits https://www.americanmadehousekits.com/house_kits

kleiba 2y ago
Yes, I found your sibling comment very interesting. Btw, I didn't want to imply anything with my comment above, just put the price into perspective.