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At the time my father was making about $45,000 a year which was a nice salary for sure 30 years ago, but definitely didn’t make him wealthy. They found a nice house in a community of Vancouver, BC that still to this day is a very sought after place to live and paid $90,000 for it. They had $30,000 to put down and therefore had a mortgage of $60,000. Now my father will point out the interest rate was a whopping 18% and that is true, that’s a large amount of interest, however let’s still compare that to what we as a very typical family are dealing with today.
Last year my wife and kids were toying with the idea of moving back into the community where I grew up, the very same community that my folks bought that house in 1980 for $90,000 with the $60,000 mortgage. We looked at a few homes and soon realized there was no way we were going to be able to afford any of them.
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The cheapest home we saw was $690,000 and it was a home that I would be reluctant to have my kids takes their shoes off in. Then we looked at a couple town homes and the cheapest was $485,000, and again it was not a home I would want to put my family into. Now to put this into perspective, I make between $60,000-$80,000 a year so on average I am making about 50% more than my father was when they bought their home, however home prices have risen anywhere between 600-700%.
Because this is a real estate based website and blog I am not going to even bother diving into all the other ways that the cost of living has skyrocketed over the years ( groceries, fuel, etc) , but it is safe to say that comparing 1980 and 2009 is really not fair.
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