Cafe Hayek: Home Run!: "Forget about mortgage-interest rates. Look only at the price of homes and the square footage of these homes: $65 per square foot in 1981 (in 1981 dollars) and $107 per square foot in 2005 (in 2005 dollars). So if we convert the 1981 price into 2005 dollars, we find that the price per square foot of the newly built median-priced American house in 1981 was $140.
That is, on a square-footage basis, the real price of the newly built median-priced home today is about 25 percent lower than in 1981."
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