Cost of living continued!

I have been really trying to post every week day. however yesterday July 24, is a Utah holiday!! Pioneer Day, and since we are government employees we got the day off!!

So now back to our regular scheduled program! :D
 

So when I returned home on Tuesday night, I thought about the numbers I posted.  I did a few calculations.  I took the House values and divided them by the gross income to see how many years of income would be required to buy a home.
                       2010      2000         1990          1980                1970         1960           1950        1940

US	125000	$119,600	$79,100	$47,200	$17,000	$11,900	$7,354	$2,938
Gross Per Year on min	$15,080	$10,712	$7,904	$6,448	$3,328	$2,080	$1,560	$624
Years	8	11	10	7	5	6	5	5

This information I calculated shows that in 1940: it would take 5 yr income to pay off a house and so on.  This shows that the dollar to home ratio was worst in 2000 and we are now dropped between 1980-1990.

So this statistic bugged me.  THERE IS NO way it has changed that much... or has it?

Step #2.  Find out the AVERAGE wage per year.
I used this to find my data
http://www.davemanuel.com/median-household-income.php

	2010	2000	1990	1980	1970
US	125000	$119,600	$79,100	$47,200	$17,000
Average Wage	$47,425	$40,418	$27,922	$16,200	$7,494
	2.64	2.96	2.83	2.91	2.27

This tells us something quite different.
This shows that really the wage has not changed THAT much. We are still back between 1980 and 1990, however the gap is not there quite so much 


What does this really mean? 

So far my claim is when it COMES TO HOUSES.... they really aren't that much more expensive then they used to be... NOW the next question..


markbw.wordpress.com
WHY ARE WE ALL SO BROKE? (I will address this question in a future blog post)