Published February 7, 2025
The Truth About Home Affordability: Then vs. Now
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- When it comes to buying a home, many people believe it’s much harder today than it was in the 1980s and 90s. But is that really true? The data tells a different story. Surprisingly, the percentage of income spent on housing has stayed relatively consistent over the past 30 to 40 years, hovering around 30-35%. So why does it feel so much harder to buy a home today? Let’s take a closer look at how life has changed and why comparing then to now isn’t as simple as it seems.
Life in the 80s: A Simpler Time
To understand the differences, let’s step back in time. I’ll use my own family as an example of what life was like in the 1980s.
Back then, my family had one car that my parents shared. When we finally got a second car, it wasn’t exactly reliable—it was a “beater” that could break down at any moment. This was pretty typical for families at the time.
Our lifestyle was also much more frugal. My dad was the sole breadwinner, while my mom stayed home to take care of the family. Eating out was a rare treat—something we did maybe once a month, usually on payday, when we’d order a pizza. The rest of the time, we ate home-cooked meals. Buying coffee or bottled water? That wasn’t even on our radar. We packed lunches, reused what we could, and kept our spending to a minimum.
Life in the 80s was simpler, but it also meant sacrificing many of the conveniences and luxuries we take for granted today.
The “Good Old Days” vs. Today
When people talk about the “good old days” of homeownership, they often forget how different life was back then. Families lived more modestly, with fewer expenses and lower expectations for what a “normal” lifestyle looked like.
Today, most households have two cars, often newer models. Eating out, grabbing a latte, or buying bottled water are everyday habits for many people. These lifestyle changes mean that while housing costs have risen, so have our expectations for how we live. And that affects how we spend our money.
The Numbers Tell the Real Story
Despite these shifts in lifestyle, the percentage of income spent on housing has remained steady over the decades. This means that, statistically speaking, homeownership is just as achievable today as it was in the past. What’s changed is how we allocate our disposable income.
For example, in the 80s, families might have spent less on entertainment, dining out, or technology, freeing up more of their budget for housing. Today, we prioritize different things—streaming services, smartphones, and frequent meals out—which can make it feel like there’s less money left for a mortgage.
How I Can Help
If you’re feeling overwhelmed by the idea of buying a home in today’s market, you’re not alone. The process can seem daunting, especially with so much conflicting information about affordability. But the truth is, homeownership is still within reach—it just takes a clear plan and the right guidance.
As a real estate expert, I’m here to help you navigate the complexities of the market and create a financial plan that works for you. Whether you’re a first-time buyer or looking to upgrade to your next home, I’ll walk you through every step of the process. Together, we can make your dream of homeownership a reality.
So, let’s start the conversation. Your future home is closer than you think.
