This is something I explained to my boomer mum, who couldn't quite grasp how things have changed. Things seem great now, as you can buy electronics at a fraction of the price, but as this video says, the necessities have gone up, way up.
In the mid 1980s, a Commodore 64 computer cost about $550, and a house maybe $70,000 for a decent modest house. That is, the computer was nearly 1/10th of your deposit! Today, a good computer can still be had for $1,500, but a 10% deposit is 55 TIMES more than that computer! Wages are about 4.5 times as high now as back in the mid 80s.
So yes, I can understand why young people just buy luxuries, there is no much home in buying the necessities.
This is something I explained to my boomer mum, who couldn't quite grasp how things have changed. Things seem great now, as you can buy electronics at a fraction of the price, but as this video says, the necessities have gone up, way up.
ReplyDeleteIn the mid 1980s, a Commodore 64 computer cost about $550, and a house maybe $70,000 for a decent modest house. That is, the computer was nearly 1/10th of your deposit! Today, a good computer can still be had for $1,500, but a 10% deposit is 55 TIMES more than that computer! Wages are about 4.5 times as high now as back in the mid 80s.
So yes, I can understand why young people just buy luxuries, there is no much home in buying the necessities.