Monday Market Update: Home Ownership Then & Now
See how 1965 home prices compare to today!
Are home prices really higher than ever? The data points to a resounding ‘yes’! CNBC recently published an article that outlines how much homeowners are spending to buy a home compared to 1965.
Here are 5 facts that explain the difference:
1965 vs. 2024
1. In 1965, the median home price was $20,200; in 2024 dollars, that works out to $202,215.
2. In 2024, US buyers are spending an average of $420,800 – more than double what the adjusted median home price was in 1965!
3. In 1965, the median household income was $6,900; a median earner would spend under 3x their income on a home.
4. In 2024, the median household income is $78,171; a median earner must spend at least 5.3x their income on a home.
5. Home prices have increased 30% since March 2020 (the pandemic era).
The data above shows that even adjusting for inflation, homebuyers are paying more than twice what they were nearly 60 years ago. When you account for the income to housing cost ratio, median home prices are over 5x a buyer’s income, compared to less than 3x a buyer’s income in 1965.
Does that mean that homeownership is harder to achieve? Yes, it does – but that does not mean it is NOT worth it! Our blog has long talked about real estate as an asset class. We encourage you to continue to work with your trusted tax professionals, financial advisors and investment experts to determine how working towards owning and/or investing in a home may benefit you.
Have a great week,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/
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