The dream of homeownership has long been a cornerstone of the American and many other societies’ ideals, but in recent years, that dream has increasingly slipped through the fingers of aspiring first-time buyers. 

A Reddit post unveiling a mortgage payment slip dating back to 1952 really rubbed salt into the wound, as it showed just how much cheaper owning property was back in the good old days.

Amidst a housing rate crisis in the US, a Reddit post went viral after showing a relatively cheap 1952 mortgage slip

Image credits: Aubrey Odom (not the actual photo)

The picture in question revealed that a property owner in Pennsylvania made a monthly payment of merely $45.29 for their mortgage.

For perspective, recent research revealed that to secure a mortgage in a majority of regions across the United States, individuals now require a minimum six-figure income. 

According to a report by real estate site Redfin, San Francisco and San Jose, California, are the top two metros that require the highest salaries, of $404,332 and $402,287, respectively.

“The Bay Area has consistently been one of the most expensive markets in the country,” Daryl Fairweather, chief economist at Redfin, said.

Due to a certain “A.Smith”’s remarkably low-cost mortgage displayed in the now-viral photograph, Redditors initiated discussions, engaging in debates about the price, while some even attempted to calculate its equivalent value in today’s market.

A person commented: “16 more payments to go, 6% interest rate. Adjusted for inflation, that is $520.79/month now. Of course, the insurance & property taxes aren’t added on. The balance remaining after paying it would be $7,984.17 today.”

Someone else wrote: “My mother is 92 and when she talks about her mortgage from the 1960’s, she says, ‘Boy, that was a long 16 years to pay off the mortgage.'”

“No wonder the population exploded. People could actually afford to live and raise a family,” a separate individual commented. “Well this is depressing,” another Redditor chimed in.

Image credits: u/1stumbler

However, some pointed out that incomes were considerably lower seven decades ago.

The average family income in 1950 was just $3,300, according to estimates issued by Roy V. Peel, Director, Bureau of the Census, Department of Commerce.

Subsequently, this figure decreased to approximately $2,300 in 1954, and it wasn’t until the 1960s that wages started to exhibit a more positive trend.

“Wage Growth in the United States averaged 6.19 percent from 1960 until 2023, reaching an all-time high of 15.28 percent in April of 2021 and a record low of -5.89 percent in April of 2020,” Trading Economics reported.

The post revealed that a property owner in Pennsylvania made a monthly payment of merely $45.29 for their mortgage, sparking outrage

A Redditor recalled: “My dad managed to be the single working parent as an auto detailer in the 1980s. They bought a house which we stayed in forever. Mom still lives there. I couldn’t imagine an auto detailer in the year 2023 being able to buy a 3 bedroom, 1200 square foot house, as the sole income. And there was no inheritance of any kind.”

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“Right now, we’re in this cauldron of uncertainty,” Jonathan J. Miller, the president of Miller Samuel Real Estate Appraisers & Consultants told the New York Times in June.  

He continued: “Housing hates uncertainty. The biggest enemy of the housing market is uncertainty, and we have buckets full of uncertainty.”

As per the publication, since December, mortgage rates have nearly doubled — rising to around 6 percent, the highest they’ve been since 2008.

Moreover, In January, a buyer reportedly would have paid around $2,100 a month in principal and interest for a $500,000 home loan. Today, that same loan would cost about $2,900 a month.

Many people agreed that housing rates are beyond reasonable nowadays

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