> But I think it’s also misleading to look at prices in a fixed location over time, which ignores that places can become relatively more desirable and move upmarket.
That's fine if there is then some other place with equivalent housing prices and job opportunities to what the parents had at the time.
> The average FHA mortgage rate in 1984 was 13.2%. Today’s it’s 6.8%. The more expensive house with a cheaper mortgage costs $482 per month less and $173,000 less over the lifetime of the loan.
Mostly because 1984 (the oldest date the graph had for median income) was a period with historically high interest rates:
https://fred.stlouisfed.org/series/mortgage30us
They were more like 8% in the 1970s and basically where they are now in the 1990s.