California’s Response To Rising Housing Costs Is Not Impressive Online

House prices, home values, or property values are terms used to describe the monetary value of a house or other property. Factors such as interest rates, inflation, population growth, and economic conditions may affect the price of houses and flats. However, how has this pattern been evolving recently? P. V. Subramanyam, a chartered accountant (CA), has spoken about how property buying has changed over time.

He spoke about the mortgages taken out by three generations on the microblogging site X (previously known as Twitter) in 1966, 1981, and 2023. He also revealed the income of the borrowers of these home loans.

“In 1966, my father purchased a home with a substantial debt of Rs. 28,000. I bought a property in 1981 with a big debt of Rs 2,50,000,” Subramanyam stated on X.

He went on to say that his nephew bought a house in 2023 with a home loan of Rs 2.6 crore.

In the next several paragraphs, he provided references for his own pay, his father’s salary, and his nephew’s salary. “My dad made Rs. 48000, I made Rs. 200,000, and my nephew made Rs. 1.24 crore in salary.”

At the time of publishing, the post has received 651,100 views on the social media site since it was posted. In the comments area, the post sparked intense discussion. While some people asked why someone with his level of income would require a loan to buy a property, others commented on his article, saying they had made comparable purchases.

“To have 48k in 1966 = 39,50,000 in today’s income,” a commenter said. Dad was not of the middle class. Furthermore, your 1981 pay of 2 lakhs per month is equivalent to 59,23,000 now. My buddy, you came from an upper-middle class background. Considering an inflation rate of 7.37% in rupees from 1966,.

“How was it a huge loan (comparatively) for your dad?” asked a different member. His yearly salary was less than 60% of the loan amount. To put that in perspective, your nephew’s is 210% and yours is 125%.

“Very well said… Our family went through similar purchases,” remarked yet another person.

However, the consensus in the comments section was that someone with great money at the time could have bought properties in posh neighborhoods even under normal conditions.