Quote:
Originally Posted by Shipping up to Boston
In a perfect world what you say makes sense. Just one part i would offer a different view....in the 50's my grandparents bought their house for 17k, my sibling bought theirs in the early 80's for 56K. Boston mind you. Both sold recently for 1.1 mil and 1.3 mil respectively. You just dont see that kind of appreciation (at least in that region) anymore.
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These are not unreasonable rates of appreciation
Your grandparents house appreciated at a bit over 6% a year, assuming 1955 purchase.
Your siblings house appreciated at a bit under 5% a year, assuming 1982 purchase.
over 40-50 years, houses in developed areas appreciate at about 5-6 percent a year. There in eastern MA, there is no more land to develop, the rate of appreciation actually increases as new land dwindles.
The issue is that the workforce configuration has changed. There is much less middle class due to automation, and then the experience and education of the past is being lost as the boomer generation retires. We had parents who lived in the depression, and taught us the manual skills which many now don't have.
So the upward mobility is harder / slower and education and work ethic will always win out. But not as many have that today.
best of luck in our retirements.