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Our homes have changed over the last 70 years, including homes size, building technology, family size, and a rise in standard of living. As people’s income increased over the 20th century they bought bigger and better homes.

Which matters to the home seller, real or nominal prices? If a seller is holding a mortgage then the question is: Can I sell for more or less than I owe? It is when nominal prices fall that banks have trouble with high rates of mortgage defaults. But if you are looking at the long-term value of real estate as an investment (compared to stocks or bonds) then you need to take into account the real growth.

Comparison of diverse beliefs between creationism and evolution in a spectrum diagram from David McCandless' book INformation is Beautiful

Average Income in the United States (1913-2006)

Average Income in the United States (1913-2006) May 3, 2008 I have updated my most popular graph Average Income in the United States. It now includes data through 2006 (in 2006$). I also added recessions from National Bureau of Economic Research {Click on the image to take a closer look}

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