[jstummbillig]

> Cars are becoming prohibitively expensive.

Adjusted for inflation, car prices are actually lower now than decades ago, especially factoring in huge safety and tech improvements. Entry-level models remain affordable, while buyers voluntarily pay more for SUVs and tech-heavy EVs.

> Housing is becoming a luxury.

Rising housing prices are mostly driven by land scarcity and zoning. The actual cost per square meter of construction (build quality) has improved and remains stable.

> Even consumer products are becoming increasingly expensive.

Nope. Electronics, clothing, and appliances have become dramatically cheaper. Quality-adjusted prices for TVs and computers have plummeted.

> Safety largely improved but not craftsmanship.

Craftsmanship is alive and well, if you are willing to pay for it. Which most consumers are not; they prefer being able to afford more things at lower prices and quicker tech cycles.

[ghaff]

Generally agree.

In snowbelt (and even somewhat sub-snowbelt) regions, cars would pretty much rust out at 50K miles and starting when conditions were wet or cold could be an adventure.

And, while I have the option of buying an expensive "handmade" (with the aid of expensive CNC equipment) dining room table--which I have done--I also have the option of buying a sturdy and nice-looking mail-order bed for $300 that I assemble.

Housing is the main thing but, as you say, that's mostly a matter of location. There are a ton of cheaper locations but many don't want to live there--even if they're fairly accessible to a major city.

[carlosjobim]

> Adjusted for inflation, car prices are actually lower now than decades ago

And so are salaries. Just compare what kind of job you needed to be able to afford a car 40 years ago to today.

Reality is still reality, people live in it and face it everyday.

[LorenPechtel]

Disagree. Real wages are ahead of all market sectors except medical and rent. People are making a bad comparison--they look at what they have vs what their parents have and see their parents doing better. Yeah, 20 or 30 years later in their career, plus a lot of time building up assets, that's actually to be expected. The proper comparison is between cohorts, but that can only be done by digging into the data, not by experience.

Wealth inequality? The majority is from comparing those starting out to those at retirement. Likewise, the majority of income inequality is hours worked. (Not to say that there aren't other factors, but in both cases when you compare apples to apples it explains more than half the range.)

[carlosjobim]

But their parents didn't need 20 or 30 years to build up their assets, or did they? They could purchase a new car when they were in their prime at 20-30 years old. Real estate they already had before buying the car. People who are in their prime today have to wait to be 50+ to have real estate, and if they want to have a new car they have to forgo that.

[LorenPechtel]

Oh?

My parents, both PhD's. AFIAK first car (they had lived where they didn't have as much need of one) was in their 40s. First house in their 50s. We bought our first house (bigger and better than anything my parents ever owned) when I was still in my 20s. (She's older but did not come with any assets beyond her education.)

[jltsiren]

Cost per square meter is a misleading measure. A model that assigns a fixed price to a 0 m2 home and an additional price for each square meter is a better match for both construction costs and subjective utility.

Or maybe the additional price should be based on the number of rooms instead. Adding empty space by making the rooms bigger is cheap, but extra rooms are usually more valuable to those on a limited budget.

Where I live in California, construction itself has become unaffordable. Even if the land were free, construction and permits are now so expensive that it's impossible to build affordable housing without subsidies.

[jcgrillo]

> factoring in huge safety and tech improvements

safety... maybe. tech? no. Having to plug in an expensive proprietary diagnostic device to diagnose problems, dozens of computers, hundreds of sensors many of which can render the vehicle bricked and inoperable if they're not working correctly.. None of this is better.

[amluto]

> The actual cost per square meter of construction (build quality) has improved and remains stable.

Do you have a source? And are you considering expensive markets (cough, Los Angeles)?

[itfossil]

Adjusted for inflation? Who cares? People's compensation haven't risen enough to even account for inflation so how is that helpful?

It's not. Saying something isn't expensive because its the same price after adjusting for inflation is a slap to the face of millions, perhaps even billions who are effectively making less now than they were ten or twenty years ago after they adjust for inflation.

That phrase is not the silver bullet you seem to think it is.

[terminalshort]

Yes it has https://fred.stlouisfed.org/series/MEHOINUSA672N