Because of inflation, the cost of homes in America has increased dramatically over time. You might be surprised at how much the market has changed in the last 80 years.
Examine the average cost of homes back to 1940 to get a sense of the market’s main ups and downs.
Prices have changed throughout time, and the Federal Reserve Economic Data (FRED) and historical Census have carefully recorded the rise and fall of the housing market.
AN EXAMINATION OF American Life Fifty Years Ago and Today, 2024
See the typical price of a house in the decade you were born in by reading on, and then check back for more information of this kind.
1940
The United States Census Bureau estimates that the average cost of a home in the country in 1940 was $2,938, not accounting for inflation.
That would be $64,372.84 in 2024 dollars if inflation is taken into account.
A DOUBLE DIGIT SALES GROWTH IS PREDICED FOR THESE HOUSING MARKETS IN 2024.
Prices today are 21.91 times more than the average price eight decades ago, in 1940.
1950
According to Census data, the average cost of a home increased to $7,354 in just ten years, from 1940 to 1950.
According to FRED, after accounting for inflation, that comes to $93,602.08 today.
Examine the cost of groceries in the decade you were born, even in the midst of inflation.
In 2024, the price of a home has risen 12.73 times from 1950.
1960
In the early years, the average cost of a home increased dramatically, eventually crossing $10,000.
According to Census data, the cost of a home in 1960 was $11,900, or $123,320.18 after accounting for inflation.