They are lying to you about the cost of homes in 2023

Jessica Bordelon Mashael
2 min readNov 24, 2023

I always get bombarded with the negative economic headlines and it is not only confusing, but quite honestly, infuriating.

Spoiler Alert! Economies continue to flow on because PEOPLE always need food, clothing, shelter, healthcare and entertainment. The world is not grinding to a halt. There are no doomsday hell fire and brimstone coming to wipe us all out of existence.

And no it is not beyond the average person’s income to purchase a home and investment property.

One of the biggest lies is that somehow it was so much more affordable in the past to buy a house.

Let’s look at the numbers and compare 1980 to 2023.

The average household brought in about $15000 a year in 1980 in Louisiana.

It cost about $64,000 for a house.

Your income in 1980 was 23% of the cost of a house

Mortgage interest rate in 1980 was a jawdropping 13.74%

making your month payment $727 which sounds great until you realize that’s $8724 a year and in fact, it is 58% of your income just for your mortgage

How do things look in 2023 in Louisiana?

The average household brings in about $50,000 a year in 2023.

In most parts of the state, a great home will cost about $250,000. Yes, this includes New Orleans, Baton Rouge and Shreveport. If you don’t believe me, comment and I will show you.

Your income is 20% of the cost of a house. In 1980, it was 23% the cost.

The mortgage rate in Nov 2023 is 7.33% which gives you a payment of $1727 a month for a total of $20,724 a year which is only 41% of your income toward the mortgage!

In 1980, you would have spent 58% of your annual income on a house payment. In 2023, you would spend 41%.

So why all the doom and gloom in the news?

2 major reasons

#1 — click bait sells ads.

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Jessica Bordelon Mashael

I am all the stuff of Millenials — Multitasker, Hustler, Unapologetic, Humanitarian. I write about Growth: wealth, relationships, spirituality and more. :-)