1981 vs 2011 Price Indexes..It’s Surprising!

Things have changed since 1981, but surprisingly the overall payment for owning a home has not changed as dramatically as you might think. In 1981 homeowners were paying about 18% interest on their mortgage, versus today’s low rates (around 4%-5%) causing homes today to be affordable.
The chart below shows the 30 year payment growth of the overall consumer price index, rent, food, gas, and medical costs versus the monthly mortgage payment.
Percent increase in price index from 1981 to 2011
Consumer Price Index 160%
Rent Index 200%
Food Price Index 150%
Gasoline Price Index 197%
Medical Care Index 410%
Monthly Mortgage Payment 17%
(on median priced home)
Courtesy of cobbcountyrealestateguide.com

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