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Originally Posted by Doug
Both interest and unemployment rates were in the double digits back in 1984. If you look at the total cost of carrying a mortgage, price increases are probably still above inflation but nowhere near as bad as presented. The real steals on housing were in the mid 90s coming of a recession with moderate interest rates and barely any price increases in a decade.
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Interests rates make a big difference if you have a mortgage, but back then it was also much easier to save up cash for a house (both because of the low housing costs and because of the high interest rates). Today in an expensive market it's really hard to buy that way.
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How much of the increase in student debt is related to tuition and how much is related to the fact that most students in recent years take 5 years to complete a degree and seem to think that does not make them laggards? Plus, how much of the debt is related to lifestyle?
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I don't know, but the tuition component has clearly gone up substantially. When you are just starting out those few thousand dollars per year make a big difference on their own.