Back to the Old Days When a Single Income could Buy a House
Inflation has had a serious effect on the economy of the world. Just 100 years ago almost everything was about 20 times cheaper than it is now. This is no different for housing; there was a time no more than 50 years ago when a single person could afford to buy their own house on a single income. While this may still be possible for some today, there are a number of factors that contributed to the major differences in how much one could afford 50 years ago and how much one can afford today. Let’s take a look at the differences, shall we?
Cost of Living over Yearly Wages
Believe it or not, in 1950, the average person could easily survive on just $300 a year! (Perhaps even less if they were frugal) This is due to the inflation mentioned earlier. In the mid-1900s, the average cost of a house with three bedrooms was $11,000. Nowadays, the average cost of a three bedroom house is a little under $200,000. See the difference? So even though the average person would only receive around $2,000 a year in wages that meant that a single person on a single age could afford their own house within a decade. In modern day, the average person earns somewhere around $7,000-8,000, but due to the cost of living as well as the inflated cost of housing, it will still take somewhere in the region of 70-80 years for the average person to afford the same sized house as what someone in 1950 could afford after just 6 or 7 years!
Advantages and Disadvantages of Cheap Living in the ‘Old Days’
The old days is a bit of a stretch as we’re talking 60 years ago. However, life truly was completely different. In terms of housing, yes, it was many times cheaper and much more affordable for the average wage. Houses were built to be quite sturdy in those days as well, for the most part, though technology and invention was not where it is now. Double paned glass and reinforced concrete were not always as top notch as they are today. They had materials such as those in the 1950s however it was not as well refined due to our lack of experience with it at the time. On the plus side, for most countries the buildings from the 1950s are still quite strong today. It is quite viable to buy a house that was built even in the early 20th century, so long as the foundations are reinforced in order to make certain the house is still sturdy. Probably one of the main disadvantages of the housing the 1950s and especially the 50 years beforehand was a lack of bathroom. Plumbing was not always installed well in every household in those days; even though you could easily afford to buy your own house, you would still need to dig a hole outside in order to ‘make use’ of your excretions. All-in-all, it was much easier to afford a house just 50 years ago, but I think we can all agree that the comfort of the modern home is fantastic!