In other news (apolitical thread)...

[Cincydawg]

I'd also note that mortgage rates were through the roof in 1985, double digits for a 30.  As mortgage rates fell, houses became pricier, because the monthly payment stayed around the same.  My first loan in 1987 was 12.5% and a 3 year ARM.

[Gigem]

https://www.visualcapitalist.com/charted-american-income-vs-home-prices-1985-2025/

The major issue I have with this graph is that homes in 1985 were probably much smaller and simpler.  Just because they cost more now doesn't mean that you can't build something similar for about the same money.  

For example, sometimes somebody will post up about some car they bought for $xx,xxx dollars back in 1980 whatever, and when you run the inflation calculator on it sometimes it's very similar to what something would cost now, except that today's cars are vastly superior and safer than what we had back in 1985.  A basic Toyota Camry would probably be faster than the majority of sporty cars from 1985.  

[Gigem]

I'd also note that mortgage rates were through the roof in 1985, double digits for a 30.  As mortgage rates fell, houses became pricier, because the monthly payment stayed around the same.  My first loan in 1987 was 12.5% and a 3 year ARM.

Older people have told me that the interest in the 70's was even worse.  Like around 20%.  

[Riffraft]

Older people have told me that the interest in the 70's was even worse.  Like around 20%. 

Late 70s early 80s. Very high interest rates.  I had a special state backed first time home buyer rate of 13.5 and was very happy.  Reagan used a number he called the misery index. Combined the rate of inflation with the unemployment rate.  The days of stagflation were not a good time.

[utee94]

The major issue I have with this graph is that homes in 1985 were probably much smaller and simpler.  Just because they cost more now doesn't mean that you can't build something similar for about the same money. 

For example, sometimes somebody will post up about some car they bought for $xx,xxx dollars back in 1980 whatever, and when you run the inflation calculator on it sometimes it's very similar to what something would cost now, except that today's cars are vastly superior and safer than what we had back in 1985.  A basic Toyota Camry would probably be faster than the majority of sporty cars from 1985. 

Yeah, this is a point that CD raises quite often, and it's a good one.  Look at the specs for a standard Camry or Accord now, and they compare favorably in speed to the sportscars of the 80s, and there's no comparison at all with respect to safety, reliability, and probably performance/handling.

[FearlessF]

The major issue I have with this graph is that homes in 1985 were probably much smaller and simpler.  Just because they cost more now doesn't mean that you can't build something similar for about the same money. 

agreed, I tell folks to go to the older part of town where the houses were built in the 40s & 50s or early 60s.
Smaller house, smaller lots, smaller & fewer closets.  a single car garage on the alley.
Less than $200K - starter home

[Riffraft]

Yeah, this is a point that CD raises quite often, and it's a good one.  Look at the specs for a standard Camry or Accord now, and they compare favorably in speed to the sportscars of the 80s, and there's no comparison at all with respect to safety, reliability, and probably performance/handling.

Don't miss the days of setting spark gaps. Adjusting points. Getting the timing right, rebuilding a carburetor.  Can't work on my own car anymore but generally don't need service at all.

[FearlessF]

National Chili Dog Day in 2025 is on Thursday, July 31st. It's the last Thursday in July. This day celebrates the combination of chili and hot dogs.

[utee94]

Mmmm I love a good chili dog.  Probably only eat them a couple times per year, usually when we're out camping, or having people over for the 4th of July.

[Gigem]

agreed, I tell folks to go to the older part of town where the houses were built in the 40s & 50s or early 60s.
Smaller house, smaller lots, smaller & fewer closets.  a single car garage on the alley.
Less than $200K - starter home

Here's a brand new one right up the street from my old 1970's house.  Not as big as mine but still a nice size home.  
And I mean brand new, just built never lived in. For $290K.  


https://www.har.com/homedetail/229-pecan-dr-brazoria-tx-77422/10360582

[betarhoalphadelta]

Here's a brand new one right up the street from my old 1970's house.  Not as big as mine but still a nice size home. 
And I mean brand new, just built never lived in. For $290K. 


https://www.har.com/homedetail/229-pecan-dr-brazoria-tx-77422/10360582

Why would you buy that when you can get this cozy 1970's beaut for just 3.5x the price?

https://www.zillow.com/homedetails/26702-Via-Linares-Mission-Viejo-CA-92691/25627968_zpid/

[Cincydawg]

Older people have told me that the interest in the 70's was even worse.  Like around 20%. 

The peak for a mortgage was around 1981, I applied for one that was 17.5%.  The inflation spike was in the early part of the Reagan era, with a double dip recession.  It was unpleasant financially.  I found a pretty nice condo that was heavily discounted because nothing was selling, so you could pay lower initial cost and higher interest, or vice versa.  We sold it 6 years later for a $10,000 profit.  

It did not sell quickly in 1987.

[Gigem]

Why would you buy that when you can get this cozy 1970's beaut for just 3.5x the price?

https://www.zillow.com/homedetails/26702-Via-Linares-Mission-Viejo-CA-92691/25627968_zpid/

I honestly don’t understand how people can live there. What kind of professions and pay do the typical people that buy houses like that have ?  

I would say that in my neighborhood the average couple makes about $180-220k combined. 

[FearlessF]

I would say that in my neighborhood the average couple makes about $180-220k combined.

not around here
maybe 120-$180K