> And with housing prices, we're not really comparing apples to apples, are we? The size (in sqft) of the median house has increased by ~40% since 1990 [2], even as the size of the average household falls.
If all cars doubled in price tomorrow, but also started getting sold with three steering wheels, would you consider that to be great news - because cars are getting cheaper? The price per steering wheel went down by 33%...
Houses got bigger because the cost of land grew faster than the cost of construction. It doesn't matter that you're getting more square footage - because you can't buy a 40% smaller home for 40% fewer dollars. If you don't need, don't want, or can't afford that square footage, housing has become less affordable.
Likewise, colleges now provide all sorts of student services, that they didn't, back in the 90s. Also, tuition is now 5x-10x what it used to be, back in the 90s. Would you argue that college is now more affordable then ever, pointing at all the amazing services that are now provided by them?
If all cars doubled in price tomorrow, but also started getting sold with three steering wheels, would you consider that to be great news - because cars are getting cheaper? The price per steering wheel went down by 33%...
Houses got bigger because the cost of land grew faster than the cost of construction. It doesn't matter that you're getting more square footage - because you can't buy a 40% smaller home for 40% fewer dollars. If you don't need, don't want, or can't afford that square footage, housing has become less affordable.
Likewise, colleges now provide all sorts of student services, that they didn't, back in the 90s. Also, tuition is now 5x-10x what it used to be, back in the 90s. Would you argue that college is now more affordable then ever, pointing at all the amazing services that are now provided by them?