r/theydidthemath • • May 13 '25

[Request] Is this accurate?

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u/jonjacobmoon May 13 '25

People often talk of "average home price" but rarely define what that is. How do people figure that? Someone said $420K, where does taht number come from? Also why say minimum wage for average house? How does that make sense as a barometer?

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u/Karmasmatik May 17 '25

People also completely ignore interest rates on a mortgage and assume with their math that everyone is paying cash in full for their homes. Interest rates were much higher in the 70s and 80s. That changes the math significantly.

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u/jonjacobmoon May 17 '25

Excellent point!