- US home prices have soared 47% so far this decade.
- The price surge has outpaced the gains seen in the 1990s and 2010s, and is nearly ahead of the 2000s.
- The rising value of homes has coincided with a millennial-fueled demand surge and years of low mortgage rates.
US home prices have soared 47.1% so far this decade, according to a ResiClub analysis of the Case-Shiller National Home Price Index.
The massive price gains seen in the first four years of the 2020s have eclipsed all of the growth seen in the 1990s and 2010s, according to the analysis. Housing prices in those two decades grew 30.1% and 44.7%, respectively.
On top of that, housing price growth in the 2020s is on the verge of eclipsing all of the growth seen in the 2000s, which was 47.3% after peaking at just over 80% before the 2007 housing market crash.
Those numbers mean nothing without knowing the local wages. In my neighborhood the lowest priced 800 sqft homes are 950k and one bedroom rent is $2400. So your area sounds like a killer deal.
I wasn’t trying to build a statistically significant argument, just giving my anecdotal woes of the local economy.
However median income for my area is $62,000. Rent range is $1400 - $3000 I gave the low end. Average is about $2,300. Hopefully that gives context.
Yeah, I wasn’t trying to give you a hard time, just sharing how drastically different housing markets can be. I could sell my house in California and buy a 400k house outright from the equity that has accumulated. Alot of middle class Californian are doing just that, selling their houses and buying in the south or midwest with cash. It’s part of what is inflating your housing costs because your market is more affordable than mine. For comparison, the median houshold income in my city is 89k but the median house list price is 1 million, making your market more affordable and attractive for those that need some relief from inflation.
A $1 million median is insane, even going by median cost of ownership in my area for a fairly standard single family home is $550,000, you could get away for $450,000 on the low end though.
I guess it can always get worse. The part that strikes me is that I live in an area that is fairly low density and was previously known for its home affordability. So I would say you’re right, that plus investment firms buying up a lot of the available housing. Not to mention the additional cost that car centric infrastructure lays on the individual.
I really hope things improve but I won’t hold my breath.