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Why is housing so much more expensive today vs. in decades past?

I was reading up on various Frank Lloyd Wright houses yesterday, and ran across this article about a FLW house that was built in 1940 for a mere $6600. Now according to my inflation calculator, that's approximately $110,000 in today's dollars (figuring nearly 4% annual inflation). You obviously cannot build a custom home in 2013 for $110k, especially one designed by a notable architect. So...what gives? What has changed?


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