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Joined: Feb 2008
Posts: 3,275
10 point
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10 point
Joined: Feb 2008
Posts: 3,275 |
Here's some numbers to crunch on, and I regularly have this discussion (usually with "old people") when they criticize younger folks for seemingly struggling more than the older folks did at their age.........1990 vs 2025 (1990 $'s have been converted to 2025 $'s for apples-to-apples comparison)
Median Household Income (AL) 1990 - $57,000 (again, converted to $2025) 2025 - $64,000 so roughly a 12% increase
Avg New Vehicle Price 1990 - $37,500 - 66% of yearly Household Income (again, converted to $2025) 2025 - $50,000 - 78% of yearly Household Income so roughly a 34% increase, and a 12% increase in "percentage of Yearly Household Income"
Median Home Price (AL) 1990 - $130,000 - roughly 2.28x Yearly Household Income (again, converted to $2025) 2025 - $234,000 - roughly 3.66x Yearly Household Income so roughly 80% increase overall, and 60% higher vs Yearly Household income.
The takeaway is that, after adjusting for inflation, households are making 12% more than they made 35yrs ago, but vehicles cost 34% more than they did 35yrs ago, and houses cost 80% more than they did 35yrs ago.
Homes and vehicles...the 2 largest expenses most people have...are rising a LOT faster than income. That simply isn't sustainable long-term. I don't know what the answer is. In 1991 I bought a F150 XLT 4x4 with a 5.0 for 18,100. I remember because one with a 351 in it was 18,900. That was sticker.This was before platinum and KR so the XLT was considered the upper trim.I also remember thinking truck prices were crazy.This was a single cab. This was before extended cabs and 4dr trucks took off. A Corvette was around 40-45k because a buddy bought one and was thinking that was insane. Just saying because I think that 37,500 was probably more around early 2000s.
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