Comment by littlecranky67
4 hours ago
It is just an example, but you come to the base of my argument: CPI basket is an average - and you cannot use it to make statements about individuals. If Netflix is nothing to you, then look at houses: My granparents (born even after 1920s) had an outhouse. That means, every time you need to use the bathroom, you left your house through the garden - come wind and weather. That meant in the winter, you were walking through the snow and do your business in a small, smelly outhouse without no access to running water whatsover at sub-zero degrees. Yet there are people running around saying that our grandparents could afford houses, while we can't anymore.
The quality of the house your grandparents (for 1920 probably your grand-gran parents) is vastly different. Those houses cannot be compared at all, when I take my dump in the heated warmth in a nicely smelling place listening to some music over my airpods.
Getting offtopic... for my father growing up in the Netherlands, the early 50's was still as you describe: an outhouse with a bucket, no running water, an uninsulated house with a roof that let in snow; he caught every illness. They had electricity but no appliances (except a radio?). By the time he was 18, they had a heater, fridge, freezer, washing machine, he had a (rusty) Mercedes and they got a TV soon after. So progress has been very uneven and if you only go back 40 years goods are far more comparable.
My grandparents’ house’s purchase price, inflation-adjusts to 3x the current average salary in the UK.
That house trades at 13x now.
There is no house of any size for 3x in most areas of the UK.
You can’t handwave that away by saying “central heating”. The cost of part-of-a-house is far less than the total - not 10x more on top.
Part of the issue is population doubled since then but house building didn’t. Part is cheap debt in the 2000s turned everyone and their dog into buy-to-let landlords then AirBnB hosts.
If your grandparents were born in the 1920s they'd have been adult in the 50s, and outhouses were already rare except in rural areas. The 40s/50 building boom built suburbia, not shacks with outhouses.
Let's look at some real numbers instead of a folksy parable about grandma. Here are recent stats about rent arrears:
https://www.baselane.com/resources/unpaid-rent-debt-statisti...
And rental affordability:
In 2026, a full-time worker needs to earn $34.73 per hour to afford a modest two-bedroom rental home in the U.S. and $29.19 to afford a modest one-bedroom rental.
https://nlihc.org/oor/about
And mortgage affordability:
https://www.visualcapitalist.com/median-house-prices-vs-inco...
None of these are heading in the right direction.