Cost of Homeownership Soars Over 1,000% Since 1970s, Fueling Debate on Past Prosperity vs. Present Economic Strain

Antonio García Martínez, a prominent tech entrepreneur and author, recently ignited discussion on social media by challenging nostalgic views of past decades, particularly the 1980s and 1990s. In a tweet, García Martínez asserted:

"The problem with the RETVRN crowd is that if you’re old enough to remember one of their golden ages (say the 80s/90s), you realize it sucked along a few dimensions, and that whatever traditional life they’re nostalgizing was mostly due to everyone being a lot poorer than now." This commentary prompts a closer examination of economic shifts and living standards across generations.

The "RETVRN" movement, a far-right ideology, champions a return to an idealized, often ethno-nationalist, imagined past, rejecting aspects of modern liberalism and societal changes perceived as "degeneracy." Its proponents frequently express nostalgia for eras like the 1980s and 1990s, associating them with traditional values and perceived social stability. García Martínez, known for his critiques of secular modernity and emphasis on commitment over optionality, frames his tweet within this broader philosophical stance, questioning the economic basis of such idealized historical perspectives.

Economic data reveals a nuanced picture regarding the financial well-being of Americans across these periods. While overall purchasing power for individuals has generally increased since the 1970s, with median incomes growing faster than inflation, the cost of essential goods and services has risen disproportionately. Notably, home prices have surged by over 1,000% since 1973, and college tuition costs have more than doubled in inflation-adjusted terms since the early 1970s.

Furthermore, the period since the 1980s has seen a significant widening of income and wealth inequality. Gains have increasingly concentrated among upper-income households, with the top 5% experiencing faster wealth accumulation. This trend has led to a decline in the middle class's share of aggregate income. In some developed economies, such as the UK, real wage growth has largely stagnated since the 2008 financial crisis, contributing to a prolonged period where living standards for many have not steadily improved.

These economic shifts provide a complex backdrop to the debate on past prosperity versus present strain. While aggregate wealth and average purchasing power may be higher today, the escalating costs of fundamental necessities and the deepening chasm of inequality suggest that for a significant portion of the population, the financial landscape feels more challenging than in previous decades, despite overall economic growth. This disparity adds weight to García Martínez's argument that the economic dimensions of past "golden ages" may be misremembered or selectively interpreted.