This is more complex than "houses cost less then".
Given a fiat currency and fractional reserve banking, the dollar floats in value like a leaf on the wind.
Houses cost less, people made proportionally less (inflation is a consideration here), and interest rates still bite you in the butt over the long haul, regardless of your monetary baseline.
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My parents bought their house when rates were about 12-14%... "High" is relative.
Lazy, regurgitated take. House prices then were also 1/10 of what they are today.
This is more complex than "houses cost less then".
Given a fiat currency and fractional reserve banking, the dollar floats in value like a leaf on the wind.
Houses cost less, people made proportionally less (inflation is a consideration here), and interest rates still bite you in the butt over the long haul, regardless of your monetary baseline.
Houses were cheap even with inflation though