A cool guide to how U.S. home prices have changed through the years (adjusted for inflation)
I’m trying to buy a house right now, it’s painful. 
Only way me and my brother would be able to afford a house is if we both went in on one together. Then we could afford a starter house in the San Francisco Bay Area and still pay only around 8K a month in mortgage.
It fucking sucks.
I quit trying. We tried right as the pandemic was kicking off. Rates were low but inventory was flying off the shelf. I wasn't about to buy something that I couldn't get inspected before buying. I mean stuff was being sold same day. Then all the prices went up. So I pretty much got priced out of my market.
Prices (and rates) seem to be dipping in my area right now, so I’m getting something while I can. I have an accepted offer and the inspection is this Saturday, so it’s a bit more tangible than just looking.
Same. I’ve become much happier now that I’ve accepted I wont own a home in at least the next decade.
Same. I drive 3 hours a day for my job - 1.5 hours there and then again back. I want to move so badly but can't afford anything in the city that won't require a ton of maintenance/renovation which I also can't afford. I feel so guilty hoping for a recession to drop the housing prices.
That’s if your city isn’t basically recession proof. Washington DC metro area is almost like betting against technology and the US economy.
Why?
Ashburn, Virginia has the majority of the US’s internet traffic going through it, so tons of tech jobs. Then also, government and government contractors.
Sure there’s small dips here but there won’t be crashing housing values here ever
Ashburn, Fairfax, Loudon, and Prince William handling more than a third of the world’s internet traffic (some sites say 70%). Link
It’s wild isn’t it? Before knowing that stat, I would have guess Silicon Valley but nope
SF Bay Area?
I just bought one. $278k 850ft 2BD 2 bath. Condo/townhouse.
Good credit. 700ish All it took was having a decent union job 58k + a year , a low income house program. And a gift of $9k.
And I can barely afford the mortgage.
The biggest shock here for me is that 58k qualifies for a low income program.
Congrats man.
For real. I honestly didn’t think I’d actually ever own anything. I had a lot of help.
Min wage here is $30k a year.
Median income is for one person is $80k Median household income is $117k. income needed to get the average house $178k.
For real I tried to apply for Medicaid/SNAP and found out I made too much money and I'd taken home like $32 the year they were looking at.
58k is the new 24k
Are you in a big city? I got mine during covid times, but out here in Texas we landed $198k 2400sqft, 4 bed, 2.5 bath on a pretty sizable lot. Cost of living and the pretty nice houses is mostly what keeps me here
Well it’s the 26th biggest city.
10 years ago 450k houses were 178k.
Congrats man! It’s a hard market out there .. I hope you find your new home to be a place of peace and tranquillity.
Got hit by a car crossing the street. Used the money for a down payment on a house that had its value go up by $200k in 2 years which I sold and managed to buy a slightly better house. It's all absolutely insane.
Damn bro time to stop looking both ways and pray for the best I guess 😁💀
What do you mean? Salary does grow with the same rate right? /s
If you think it’s bad in the US, you should see how much worse it is in Canada.
Our economy in Canada is on the brink of collapse at this point.
And Australia's not much better. Median house price in Sydney is $1.6M (just over $1M usd).
Bought one in the most expensive time according to this. A good loan specialist and house broker mixed with duel income is the only way. Unless you make over 100k a year.
Duel income? Fine if you have mad rapier skills, I guess.
I don’t either. I’m Gen Z (26) and I have friends my age that somehow have been able to buy a house. We do live a relatively low cost of living area, but most houses are over $150k for something that isn’t falling apart. I don’t know if they’re getting help from their families or if they’re taking out loans. I still live with my parents because rent is so expensive let alone buying a house.
Money
It’s easy, you simply accept the most crushing life-long burden the bank will give you.
They aren't, corporations are. More and more homes/apartments are being gobbled up by these monolithic housing companies and jacking up rents and its only accelerating.
I'm in the UK so it's not a direct match, but let's assume that /broadly/ prices and inflation are about the same, in 2000 I was making about £13k and that same job now pays about £24k.
Same. I would love to see “Average Household Income” added to this chart too.
Housing prices are still increasing near me. I had no clue they were, on average, going down
Cool graph. The next step would be to factor in interest rates for the full monthly cost of home ownership. That would be really telling.
Also average wage compared to cost of house
Median wage would be brutal.
Also do it per square foot to normalize for growing house size.
This site does that it doesn't have 2024 numbers yet though
Good graph. Though I remember the logo of the webpage because I frequented them until I realized that they had a bit more editorialization than at first glance. Just my 2 cents on potential bias.
Here's a limitation that they acknowledge:
Although this tool can give you a historical snapshot of theoretical median, 25th percentile, and 75th percentile income buyers in the United States, it isn't the sharpest resolution. As you well know, different areas of the country have different home prices... and you definitely can't buy median-priced US homes in a large portion of the country!
(And I'm not even addressing the other significant cost in a home purchase – the down payment, traditionally 20% of the home price. Nor am I addressing the number of houses on the market.)
Other important context. Along with u/smellyboi6969 's points in this comment .
Can we also normalize to $/sqft? Houses have gotten a lot bigger over 60 years
Genuinely curious, would interest rates really be telling? For interest to be the determining factor of monthly payments, wouldn’t it require so many other aspects of home purchasing/ownership to remain constant over the years? Consistent loan structures, consistent down payment practices, consistent property taxes, consistent utility/insurance/repair costs. Or has everything else been relatively constant?
Honestly I'm not sure on loan practices in general, but interest rates were incredibly high a few decades ago and I wouldn't be surprised if monthly costs including interest have been more stable than this graph suggests (inflation taken into account).
As it stands, this graph only shows housing prices as a lump sum.
Home loan periods have also lengthened over that time. Almost no one gets a 20 year loan anymore, let alone a shorter one.
Yes, interest rates would be very telling. The difference between ~15% and 2.5% is massive. My interest rate is 6.5 and going down just a couple of points would save me $500+ per month.
Yeah last time I did the math a 450k home today would cost the same over 30 years as a 805k home if purchased at 2.25% in 2020/21….
Insane, because in today’s market 450k buys a 600sqft shack in the areas I live. Hell the place I bought in 2021 was 807k and I would consider it tiny at 1500 sqft. Only reasons I bought it was 1: I had to. 2: It was a legal duplex so I can offset mortgage cost. The bad thing is that insurance and taxes have raised my mortgage $600 monthly in only a few years….. I honestly don’t know how ANYONE is buying right now.
Might as well wait for all the boomers to fade off and take advantage of excessive inventory prices.
This is a great chart for them boomers that bought a home for 7 raspberries
Boomers with 15% interest savings accounts and went to college for 2 blueberries in the 80s: “kids nowadays are lazy and entitled. Back in my day….”
In the late 2000s, we had our football coach teach a class on how to be a millionaire by the time you retire. It was basically get a 10% interest savings account and put $2000 in it every year. Where the hell do you find 10% interest on a savings account? Especially with no money?
If you have $100k+ in cash you can get a high yield savings account, not sure if $100k is enough for 10% though. All you have to do is win a sizable lottery and deposit the lump sum into a savings account, or alternatively be born to a millionaire/billionaire, and you'll never have to work a day in your life.
Note: forgot to mention said "lump sum" would be more a long the lines of $1m, obviously 10% annually of $100k would not be livable on it's own.
I’ve never heard of a 10% high yield savings account. Those accounts tend to cap out around 5%.
8% to 10% is the conventional wisdom of what you could expect from the stock market if you are in it for a long time. (Averaging out all the highs and lows)
If you could get 10% in a savings account, why would anyone invest in something with equal/worse returns and more risk like the stock market?
Boomers with 15% interest savings accounts
you're ignoring the 15% mortgage rates
What you said reminds of the movie "Unfrosted."
Saved up muh pocket money from deliverin’ newspapers! Yep, worked hard for a livin’! 😅
Bold of you to assume that boomers would be able to comprehend what that chart means.
It’s almost like the older cohorts manufactured this scenario… oh wait, they did
Now add the median household income.
https://fred.stlouisfed.org/series/MDSP
This doesn’t compare sales price, but it does compare mortgage payments to income.
Average home almost $500k lmao. That’s just sad man
No shit I just saw some dude bought a house in Japan for like 20k. I’m about to learn Japanese and start buying winter coats
The issue with that house is that it's in the middle of nowhere and has no insulation or internet. You can probably find something about the same price in middle America.
Youtuber got one for 6k I just saw https://m.youtube.com/watch?v=jiyc5E5-VAc&t=695s&pp=ygUONmsgamFwYW4gaG91c2U%3D
Gen X here. My wife and I bought our first home in 2009. Sold it in 2020 and bought our new home 4 months later. We have a very low interest rate on our current home in California.
I’ve never judged anyone for the decisions they’ve made. And I can see it’s nearly impossible to buy a home right now with the low supply and current interest rates. I don’t know who to blame for the situation we are in, but it’s bad.
It's frustrating how the housing market has become so inaccessible for so many people. It's important for policymakers to address these issues to ensure housing becomes affordable for everyone again someday.
Please don’t hate me. I realize we are very fortunate for the way our timing worked out.
You're in that truly prime sweet spot, if 1975 is your birthyear. ~35yo with buying power in ~2009 at a relatively low rate. There for a decade to to see equity and value rise. Then able to roll that into a wildly low rate come 2020 madness. So, so lucky, AND probably hardworking, considering the capital it takes come ~2009 to begin with. But truly potentially one of the last of the crazy "lucky" ones.
Two observations: 1) the average home built today is much larger than the average home built in the 70s and 80s. 2) the interest rate on a home loan was in the double digits throughout the 70s and 80s - as high as 18% or more, compared to the single digits of recent years. It would be a more interesting graph if the values were adjusted for that - ie monthly mortgage payment per sq foot.
Good points, I would also like to add a couple more observations:
- Safety regulations has increased, which increased costs
- Appliances, and other modern day convenience add to the cost as well (master bathrooms, etc)
I'd like to add some more observations: 1. Population of the US in 1963 was 189M. Today it is 342M. So it has almost doubled. The land mass of the US during this time has not changed. 2. In 1960, about 70% of the population lives in urban areas. About 30% of that was in suburbs. In 2020 80% of the population lives in urban areas, with about 43% of the population in suburbs. So the demand to own a single family home in a suburb has increased over 60 years while the land surrounding major cities has remained the same. More houses have been built but you can only build so many houses in a radius of a city center while being close enough where people are willing to commute. 3. In 1960, the work required to build a house required much less skilled labor. For example, In the 1960s most homes on the market did not have air conditioning. As time has gone on, houses are expected to have certain features (more electrical outlets, HVAC systems, safer materials, telephone and optical cables, etc) that weren't prevelant to homes being sold at that time. The demand for modern conveniences has required more construction and specialists that drive the building cost of a modern home up and thus the price. 4. Demographics play a huge factor. The baby boomer generation started buying homes in the 1980s through 1990s. This extra demand drove up home prices (lots of people, limited number of homes). Currently we're experiencing a similar uptick in home buying from an abnormal bulge in babies born between 1988-1992. 1990 was a year that had the highest child birth rates during this period. The age of these 1990 born babies is 33-34, the prime age for home buyers.
Over the next 5-10 years I would expect home prices not to rise or not rise as quickly as recent years. So there may be some relief coming as the demographic abnormalities subside and the interest rates remain "high". But I don't think home prices will fall or fall significantly. Thats not how inflation or buyer/seller expectations work.
Good post. As somebody else in this thread mentioned, I would really like to see a guide like this based on price per sq ft or average mortgage payment per sq ft. People are forgetting that new homes being built now are MUCH bigger than ones built decades ago. The average home built in the 70's was around 1500 sq ft based on numbers I can find, while today the average new home is around 2500 sq ft.
That is absolutely one of the major issues tho. No one is building starter homes
I would agree but I wonder if building efficiency (modern equipment and tools) offsets new building code costs?
Residential construction wages have probably decreased or at least not kept up with inflation. Look at most residential building crews now, they don't speak English.
Appliances are less expensive than decades ago due to Mexican, Chinese and Korean imports.
Mexican, Chinese and Korean imports.
I know China has a bunch of brands like xiaomi and huawei, and Korea like LG/Samsung, but Mexico makes appliances? Are they good?
there's a huge market for "finish assembly" services in Mexico because you can do most of the manufacturing with cheap labor in SE Asia or India and then bolt it all together in the lowest-labor-cost that still qualifies for NAFTA tax and import duty treatment.
Mexico is the world’s seventh-largest passenger vehicle manufacturer, producing 3.5 million vehicles annually. Eighty-eight percent of vehicles produced in Mexico are exported, with 76 percent destined for the United States. Established automakers in Mexico include Audi, BMW, Ford Motor Company, General Motors, Honda, Hyundai, Jac by Giant Motors, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota, Volkswagen, and Tesla, which recently announced a new plant to be built in the state of Nuevo Leon as part of its electric vehicle production. https://www.trade.gov/country-commercial-guides/mexico-automotive-industry
I meant most major US brands are now partially or completely made in Mexico
And they haven’t built any houses since the 80s so we’re comparing a nearly new house to a 50+ year old house.
The graph is not of new construction only, this most likely also includes a fairly large sample of existing home sales
True, but the old data does not include the new home construction.
the average home built today is much larger than the average home built in the 70s and 80s
In my area, those 70s and 80s builds are worth more than most of the new builds today. SFHs on large lots vs condos, townhomes, or very dense SFH communities. That being said, they just get leveled and built into huge SFHs
Those houses are also likely in some of the most desirable neighborhoods.
I'd be interested in average price per square foot. I think land has skyrocketed, but I don't think price per square foot has, especially when you look at the cheapest options like modular and mobile homes.
For your 1st point, you're right that houses are bigger but that is not what is driving prices. The cost of land has gone up tremendously. As an example, the house I live in is on a $250k plot of land. 20 years ago, that same land was worth maybe $20k or less (brand new, the house sold for $200k total). The house sold again just a few years ago for about $500k. The house didn't get any bigger. It didn't grow another 3 bedrooms during that time. As far as I can tell, it has not had any major remodeling done.
It's just that the ground it sits on got more expensive faster than the structure on top depreciated. That growth in land value is completely independent to the size of houses that are built. It could have been a vacant lot and it would have still gone up.
This chart would whip ass with a per-square-foot line, some kind of interest rate adjustment, and some kind of median wage adjustment.
Ssssh, that would involve math. We can't have that here.
We also can't have per-capita measurements, inflation adjustments, etc., etc., etc., at any point where they might be remotely useful.
Houses are now made of plywood tho.
Can someone explain this graph to me in layman terms?
Houses are expensive
Houses are getting more expensive. Houses were selling for 200-300k today dollars in the 1900s whereas nowadays, houses are selling for $500k
Can you add another Y axis, average mortgage interest rate/term etc
Would love to see this but with median price instead of average and perhaps overlay median income as well
It would be really neat to have this normalized as a price per square foot. While houses are more expensive, they also tend to be larger.
Yes we are in a housing crisis, but a price per square foot metric over time would reduce noise
Would be more useful to see home values vs salaries.
Is a there metric that represents purchasing power? That would take into account inflation+salary increases
We bought our (admittedly crummy) hobby farm back in 2002. We're incredibly rural (800 people in our town) and our house is 170 years old. It's built well, but it needs more work than it's worth. We bought the house and 25 acres for $170K 22 years ago.
And if you were to tell me (heck, even suggest) that our joint would be worth just shy of $400K in 2024, I would have laughed myself into an aneurysm.
This market (even in rural America) utterly out of whack. Then again...it's dumb of me to ignore this value.
We just want to sell and move to Italy...and get another wee farm there between Turin and Milan. No...I'm not kidding either!!!
If you wanna feel better about your shit situation, do this infographic for us canadians...
A more useful chart would include median salary adjusted for inflation
Per square foot, the house is actually a little cheaper. Houses have nearly doubled in size since 1975z
While this is interesting it misses a major factor to average home price increasing over time and that is the growth of square footage. Americans wanted bigger houses, that costs more.
I want to see this same chart adjusted by square footage.
This would be more revealing if it was cost per sq ft. Home are larger, so part of the increase is related to average size. (Which itself is an issue, there are fewer “starter homes” in the market)
This is the "Why Gez Z feels alienated" graph
Something that particularly angers me is the cost of homeowner’s insurance and property taxes currently, even though those are tied to state and county/school district, it would be nice to see how they have increased over the years. For some that is directly related to their mortgage payment for others it is tied to home ownership costs in general.
If I had to buy the home I own right now, I could not afford to due to rising prices. On the flip side I will be putting it up for sale this fall so I should come out ok. Unless that predicted crash happens before then.
Please do one for Canada, it'll be mind blowing
A (not so) cool guide 🙁
I got lucky.. bought my house with 5% down in 2020 right before things got stupid. Paid just under 100 bucks a square foot in a fairly HCOL - (resort area) with an interest rate of just at 3%… I couldn’t afford my house today. Costs increased so much that I was able to get rid of my PMI after a year. It’s new construction and after a long pause they are starting back with new homes. Now at 130+ a square foot. I feel like I’m stuck where I am. Even if I sell and cash out I would have to buy a much smaller house.. I’m in just over 3000 square feet…
I have told my family for years "Sure I could sell my house for $300,000, but I would not be able to find any decent house, or a damn pole barn/shed, to live in with that $300K." 1,200 sq ft, "starter home", 3 bdrm, 2 bath, bought new in 1992 for $66,000. I will die here, I can never move, and I have to come to peace with that.
Would be cool to see this same graphic but with the cost of a 30-yr rate mortgage with 20%, assuming the average interest rate of the year
I haven't seen a move-in-ready house under $500K in Colorado in 3 years.
Is there enough data readily available to adjust for the huge increase in square footage on-average? One site I found showed the average to be 1,269 square feet in 1960 and 2,657 square feet in 2014. Based on that, the price per square foot in adjusted dollars has been relatively steady.
So in 1963 money was worth 10 times more than it is today
But what does the MEDIAN home cost? Housing is ridiculous, granted. However, I'm sure the proportion of mcMansions has risen dramatically over the years, skewing the point the graph is trying to convey in its favor.
I'd like to know the average home size and how many of these new homes are in urban centers where the land is naturally more expensive
Now adjust for square foot.
Curious to see how total square footage would trend.
I love this chart, but I would love it even better if there was a third color/bar that included a combination of these two metrics with the average home size through the same years. If there is a way to do so, that would be the best representation of what we are actually dealing with. Avg single family home sizes have tripled since 1950. That must play a part.
It's adjusting for inflation, but not adjusting for the size of homes. Homes are inherently larger now. Avg sq footage is way up. So that partly explains why prices have increased relative to inflation, but that's no solace to first time homebuyers who would be fine in a smaller house.
Do cost per square foot. We have adjusted our expectations.
Price per sq foot over time would be really helpful. Land and labor costs have risen, but materials cost have not risen nearly as much. My guess is most of the real cost increase is due to land value and larger homes.
As an Australian, watching you all complain over that while our houses are at a median of $800k hurts my soul
US population 1963 = 190 million.,,,,, US population in 2023 = 335 million.
Great job with the presentation!
I remember my grandparents home. Three bedrooms, one bathroom, and the kitchen and dining room were in the same room. Linoleum flooring, Formica countertops, no dishwasher, etc. That would not be built today, as there would be 2.5+ bathrooms, a family room, hardwood flooring, stone counters and flooring in kitchen and bath, and so much more. All that stuff some people need to have, raises the price.
Stop being poor.
I bought one in 2016 then refinanced to 2.875% in 2021. I'll never sell if I can help it
We’re so fucked
It should be called how realtors are apart of the problem and no one is going after them.
Thank you! I've been looking for exactly this to help my parents understand just how different (aka harder) it is to buy a house now vs when they did in the 80s...
I really don’t understand how people are affording $300,000+ houses let alone $500,000. I have a HHI of around $150,000 with my mortgage being $1225 and I can’t even imagine paying close to $2000 a month for mortgage. How do people afford to live comfortably while paying that much?
This should be in "uncool guides".
Don’t forget that old house you buy also comes with the problems of an old house. Most boomers bought brand new and didn’t have to worry about repairs/neglected maintenance.
When I see “average” my mind says oh great more shit data. Please come back with “median” so we can have a real discussion. That said, yes home prices are rediculous
i assume whoever made this used cpi for modeling inflation. if this shows anything at all, it shows how inaccurate or curved cpi is as a measure of inflation.
I’m curious how this would change if YoY % change in M2 (or w/e metric is used to aggregate total money supply)
Just curious, why not use CPI to model this- what is a better measurement then what a consumer pays.
Also It would be cool if the money supply was calculated into it but even then money is be hoarded horrifically by the older generations. We are about to see the largest generational money transfer in history as the older generations begin to pass. The people with the most money contribute less to our economy then those less wealthy.
The way CPI has been calculated has changed throughout the years.
Let’s overlay these charts with the rate at which corporations and serial landlords are buying up homes for sale making is harder and harder for regular people to own where they live.
I’m betting there is more than a little similarity.
Look to the wealthy corporations run by even wealthier people.
/sqf and with interest rates accounted for would be the right way. If you factor that in I don‘t think housing is much more expensive.
I haven't seen a move-in-ready house under $500K in Colorado in 3 years.
Now show us a chart of avg wages based on inflation
Neat trick…
Now show average wages adjusted for inflation
Maybe all y’all mellenials should start fuckin and move to the country!
Now do it with average wages for a side by side
I’d like to see a chart like this compared with average salaries
Add in median wages adjusted for inflation to truly see how unaffordable things have become.
Inflation is a policy choice. It's obvious why prices are that high when one realizes this.
Bought our house in 2011. 😎
I have a GED.. I think you’re explaining to me that my money costs more and spends less?
This ignore the fact that pay is lower than inflation has risen too. In almost all areas cost is higher than inflation. Meaning the dollar spend is worth much less. This MULTIPLIES the problem that was already hard.
This is what stupid fucking boomers did.
If you bought in 1987 and sold in 2011 you would have lost money relative to inflation (not to mention lost opportunity cost) but if you bought in 20 and sold on 22 you'd have a > 10% profit/yr (adjusted for inflation)
What happened in 1971?
:(
Please make one about 🇨🇦 Canada 🇨🇦
Now I'd like to see this chart in price per square foot.
Can we see this in comparison with our paychecks too so we can really be sad and hopeless?
I’d like to see in an adjacent graph showing average salary/income of some sort to see how the house prices and income pace with one another.
This is a very interesting data set and easy to see how things have changed (for what I can only assume is for not the better).
25 years to get to 100K. 15 to 200. 12 to 300. 8 to 400. 4 years to get to $500K. That's krazy.
I will never have a chance to own a house.
as the house get older they price go higher too… America!
I sold my house in LA in 2021 and the price has only barely risen. If I were to buy that exact same house today at the exact same price I’d pay over double on the mortgage. $8500 a month instead of the $4200 I paid before.
If I had known the market would become completely retarded I’d have kept it and bought a cheap condo instead of this nicer house in a nicer area (not LA)
where are people buying homes for 500K, the median home price is more like 1M+
The average home today is twice the size of the average home in 1963, outfitted with more advanced technology, and constructed according to far more stringent standards. A dollars-per-sq. ft comparison would be more enlightening, I think.
I got super lucky and locked in at 2.3 percent interest in the summer of 2020 for 213k.
It's valued at 274k right now and keeps going up because I'm 35 minutes from Austin and San Antonio.
I put 10k down and pay 1230 a month in mortgage and I make 65k as a teacher in my ninth year teaching.
Ultimately there is just too many people and not enough space or resources. Housing prices won’t decline until there is population decline and population decline will come with a whole mess of other problems
Well this isn’t sustainable…
I had a house burn down in ‘10, and I bought one w/ the insurance money in ‘11.(that divot)I sold it in ‘21 for exactly double.
Would be better if it was price per sq foot livable space. Houses keep getting bigger too
What happened at 2011?
Needs price per square foot and interest rates factored in.
I’d like to see median home prices instead of average
Doesn’t this show that housing has become more affordable, adjusted for inflation? Inflation has increased faster than housing prices.
Would be cool to also see interest rates at the time or add the cost+interest. Houses are more expensive right now and interest rates are way higher than they've been, so the graph should look way worse now.
The sizes of homes have changed significantly since WWII, I wonder what this chart would look like if broken into a PER SF unit of comparison.
Now do Canada. I’ll wait.
If you’re buying anything right now you have to be willing to put in some serious DIY rehab work over years and be comfortable living in a construction zone. It’s tough out there right now
In addition to the square footage changing significantly on average, the code requirements and “expectations” have significantly changed. I imagine one or two outlets per room max was the norm for a long time in the past, where now 2 is likely a minimum. Walk in closets, extra bathrooms, more expensive and larger water heaters etc adds to pricing.
In the 50s it was a rare home indeed that had a garbage disposal or dishwasher.
Fuck owning a home, buy a big boat 50’ or better and travel with your home.
Home sizes have also changed. Need that data for this data to be relevant.
I bought Jan 2012. It feels like I won the lottery of home buying. I have my entire original purchase price in equity now.
Guys I’m in gen z I’ll probably buy a house or nice apartment or something in 10 or so years when I’m 25-26 am I cooked
So by the looks of this it says we have reset the market and only few individuals will be able to afford homes while banks and real estate groups will be taking over.
They blame Hispanics and when they leave the state the prices go even higher, USA is a big joke to the rest of the world rn.
The problem with things like this, is that there are several different things that can affect house pricing. Yes, houses are more expensive now, but it isn’t solely due to the combination of supply and demand + greed.
They are just sacking on astronomical debt. It's a bullshit story. It's criminal. This fucking machine we live in. Uhggg.
This is not an affordability index though. A $500k house at 3% interest VS 7% interest are very different propositions for most homebuyers.
Is there data that accounts for interest?
I place some of the blame on the massive house flipping market. Investment groups and private investors are buying up all the affordable housing, putting a fresh coat of paint, doing some basic remodeling, and then selling (or renting it out), at an unaffordable price. I got my house in 2017, and it needs some work which is obvious from the exterior. I get a call and letters weekly from investors wanting to buy my house for cash. I make sure to tell them to go kick rocks when they call.
Can anyone provide this for India, Mumbai?
Homes are also comically large now compared to homes in the 60s and 70s
Would love to see this as price per sq ft over the years.
Now I'm not the most intelligent person, and I don't think anyone can disagree that houses are expensive, but when graphed out it seems like a pretty stable trend. There are no giant absurd spikes.
Things get more expensive, that's what they do. You won't find the same size house for the same price now that you did in 1999 just like you won't ever fill up your gas tank again for 79 cents a gallon. Unless there's an absolute economic crash that graph will always trend upwards over the decades. From '63 to'73 the average home price doubled. From '73 to '83 it way more than doubled. After that the exponential increase cools from decade to decade, but my point is the way people talk about the housing market you'd think the average cost had quintupled since 2014. It all seems on trend to me.
Someone tell me why I'm stupid.
I’m lucky I built in 2014 and mine cost 189k
Now add median square feet.
Turns out there's something to that supply and demand thing. Build more houses.
One hidden variable here is the average size of the homes. If you normalize for average price per square foot you’ll see the numbers hardly change over the last 60 years. Can’t just say oh homes were half as expensive 60 years ago… yeah well they were also half as large
Redo this with price per sq ft
Looks healthy 🤬
Houses are also getting bigger. I wonder if we can track the adjusted price per square foot? I suppose we would only need to know the average house size through the years to understand if that is part of the cause.
Pretty linear
I have no idea how people are buying a house right now.
source