Real estate/wages & the economy

Discussion in 'Economics' started by peilthetraveler, Aug 29, 2008.

  1. Here is how real estate/wages has appriciated over the last 70-80 years.


    ____________ R.E.__Wages
    1930 to 1940 -53% -12%
    1940 to 1950 +90% +70%
    1950 to 1960 +67% +70%
    1960 to 1970 +25% +70%
    1970 to 1980 +280% +106%
    1980 to 1990 +100% +55%
    1990 to 2000 +11% +50%
    2000 to 2008 +58% +23% (to 2007 for wages)


    So there you go. Wages are 25 times higher than in 1930 vs today ($1,970 per year in 1930 vs $50,200 today)

    R.E. is 29 times higher ($7,145 for a new home in 1930 vs $212,000 for a new home today)

    Its interesting to note the way wages and real estate prices almost seem to alternate in the rates that they move. You've got wages outpacing R.E. in the 30s, the 50s, 60s and 90s. Yet in this decade wages are not up very much at all and are only expected to maybe be at a 30% increase by 2010 since 2000.

    Although past number do not mean much for future number I thought it would be interesting to speculate what might happen in the next 10 years from 2010 to 2020.
     
  2. What is the source for your data?
     
  3. Starting with the Great Depression is a lousy method. Try the entire 20th century.
     
  4. Thats all the information i had! I actually wasnt even going to put in the 1930s, but when i saw that housing dropped 50% and wages barely dropped at all, I thought that was interesting.