Mortgage statement from 1952 sparks discussion as people could ‘actually afford to live'
If you were already wound up about the cost of buying a home at the moment, this will really add insult to injury.
The price of houses are higher now than ever, making it virtually impossible to get on the property ladder if you're a first-time-buyer.
A recent study found that people in the US need at least a six-figure salary to be able to afford a mortgage in most areas of the country, with San Fransisco coming up top as having the most expensive homes.
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In the report conducted by Redfin, it was estimated that San Fransisco residents need to be making an eye-watering $404,332 a year to be able to afford being an homeowner as the median monthly mortgage payment currently stands at $10,108.
Yeesh.
Meanwhile, the most affordable place to live was Detroit, where it was found that you'll need an annual income of $51,793 to buy a home.
Going back 70 years, you needed substantially less - and I mean substantially - in a bid to afford to be a homeowner.
A photo of a mortgage payment slip posted on Reddit from 1952 shows that the owner paid just $45.29 a month towards their mortgage for their property in Pennsylvania - and yes, you read that right.
With it being so darn cheap, Redditors have begun to debate the price, with some even translating it to what the price would be in the modern day.
"16 more payments to go, 6% interest rate," someone wrote.
"Adjusted for inflation, that is $520.79/month now. Of course, the insurance & property taxes aren't added on.
"The balance remaining after paying it would be $7,984.17 today."
Another person added: "My mother is 92 and when she talks about her mortgage from the 1960’s, she says, "Boy, that was a long 16 years to pay off the mortgage'."
"Well this is depressing," added another, as someone else quipped: "Now that, that I can swing!"
But others noted that people earned a hell of a lost less 70 years ago.
It's reported that the average family income in the 1950 was just $3,300.
This later dropped to around $2,300 in 1954, and it wasn't until the 1960s that wages began to look more optimistic.
As per Trading Economics: "Wage Growth in the United States averaged 6.19 percent from 1960 until 2023, reaching an all time high of 15.28 percent in April of 2021 and a record low of -5.89 percent in April of 2020."
But, it's still kind of crazy to think a monthly mortgage payment from 1952 couldn't even get you a pair of Nike Dunk's nowadays...
Niamh Shackleton