In parallel with this is the growth in off site storage. When I was growing up it seemed that few people I knew had off site storage, but it seems much more prevalent today. Storage for furniture, hobbies, collectibles and everything else that people can't bear to throw out.
While houses are getting larger and in particular storage elements & off-site storage is a growth industry, a different trend is going the OTHER way. Deflation, or chronic price reduction, is occurring with most of the "stuff" that people are storing.
Here is one example - my new "blog" camera with a small footprint (it is pretty slim although the lends does pop out when you turn it on) was only $212 and it has 7 megapixels and a bunch of cool features, like when you tilt the camera 90 degrees the photos switch from landscape to portrait in "view" mode. This camera blows the doors off previous digital cameras that I paid over 600 dollars for just a few years ago.Fry's, the gargantuan electronics store, has its post-Thanksgiving sale on Friday, and I can hardly believe how cheap everything is. For example:
- A Sony 7.2 Megapixel digital camera for $77
- A 32" LDC HDTV for $377
- A camcorder for $157
- A Samsung 800-watt DVD Home theater system with DVD player, stereo, and surround sound speakers, for $219
- A 700 watt microwave for $19
- A cordless phone system with an answering machine and four remote handsets for $79
"Get a phone for less than you paid for this paper" (which is $2, I think at the news stand).
When you are justifying that big mortgage don't justify it by the requirement to store all of your stuff... you'd be better off just throwing most of it out and buying new stuff, at least from a financial perspective. The cost growth has been in services, taxes, land and commodities, not hard goods.
Cross posted at Chicago Boyz