Home prices in the United States have skyrocketed in recent years due to inflation, and you may be surprised at how much the market has changed over the past 80 years.
Let's look at average home prices going back to 1940 to see the big ups and downs of the market.
Prices fluctuate over time, and historical censuses and Federal Reserve Economic Data (FRED) meticulously record the rise and fall of the housing market.
Find out the average price of a home in the 10 years you were born. After that, keep an eye out for information like this.
1940
According to the U.S. Census Bureau, in 1940, the average price of a home in the United States was $2,938, not adjusting for inflation.
The inflation-adjusted price in 2024 dollars would be $64,372.84.
Compared to 1940, the current price is 21.91 times the average price 80 years ago.
1950
According to Census data, in the decade from 1940 to 1950, the average home price jumped to $7,354.
That's the equivalent of $93,602.08 today, adjusted for inflation, FRED reports.
House prices in 2024 have increased 12.73 times compared to 1950.
1960
The average price of a home increased significantly in the early years, with home prices eventually exceeding $10,000.
Census records show that in 1960 home prices were $11,900, or $123,320.18, adjusted for inflation.
In 1963, the average home price reached $19,300, which in 2024 is equivalent to $193,470.52.
By the end of the decade, it cost Americans $27,000 to buy a home, according to FRED, which equates to $213,457.27 after accounting for inflation in 2024.
1970
According to FRED's calculations, the '70s saw an overall increase of nearly $50,000 from the beginning of the decade to the end.
From 1970 to 1975, the average home price jumped from $27,000 to $40,900, and by 2024 they will be $213,457.27 and $233,195.38, respectively.
The biggest jump occurred at the end of the decade, when the price reached $74,200 in 1979, or $313,506.24 in today's inflation-adjusted dollars.
By the end of the decade, the average price of a home in the United States was $72,200, or $305,055.94 adjusted for inflation in 2024.
1980
One of the biggest increases in home prices occurred in the 1980s. Here's a comparison of his numbers from the early '10s and his transition into the '90s.
From the beginning to the end of the decade, the average home price jumped from $73,600 to $151,200.
According to a report from FRED, a home priced at $73,600 will cost $273,986.72 in 2024, while a home listed for $151,200 will cost $374,032.22 in 2024 due to inflation. It is said that it will become a dollar.
The largest increases occurred from 1984 to 1988, when the average home price increased by more than $40,000.
Stay tuned for Part 2 of this two-part series. This series concludes his 21st century and focuses on his one of the biggest jumps in housing market history.
