http://brainrow.com/2006/08/29/yikes-spikes.html A Babbling Stream of Semi-Consciousness Thu, 20 Nov 2008 14:14:38 +0000 http://wordpress.org/?v=2.6.3 http://brainrow.com/2006/08/29/yikes-spikes.html#comment-91 mr wade Thu, 28 Sep 2006 01:35:41 +0000 http://brainrow.com/2006/08/29/yikes-spikes.html#comment-91 New house prices have increased over the last hundred years like everything else, in part, because the government has continued to print more and more money, driving the value of each dollar down in the process. That's inflation. Secondarliy, the reason they have increased faster then some other things is because back then an "average" new home might have 600 to 800 square feet of living area. Today the average is around 2000. Bigger house, bigger cost. Additional to both of these issues, the amount of land, unlike the amount of dollars, cannot be increased in any significant way, so the value of land has risen against the dollar, and has increased in value because of demand, a double hit. New house prices have increased over the last hundred years like everything else, in part, because the government has continued to print more and more money, driving the value of each dollar down in the process. That’s inflation. Secondarliy, the reason they have increased faster then some other things is because back then an “average” new home might have 600 to 800 square feet of living area. Today the average is around 2000. Bigger house, bigger cost. Additional to both of these issues, the amount of land, unlike the amount of dollars, cannot be increased in any significant way, so the value of land has risen against the dollar, and has increased in value because of demand, a double hit.

]]>