This was the average cost of an American home in the decade you were born: part II

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The housing market in America has had its ups and downs, all carefully documented by the Federal Reserve Economic Data (FRED).

Earlier, in part one of this two-part series, FOX Business reported the average cost of homes in the decade you were born — from the 1940s through the 1980s. 

The average cost of a home in the U.S. in 1940 was $2,938 — and nearly four decades later, in 1980, homes reached an average of $73,600.

Through the course of that decade, the average price of houses jumped to $151,200.

THIS WAS THE AVERAGE COST OF AN AMERICAN HOME IN THE DECADE YOU WERE BORN

Read on to see how the cost of homes continued to increase from the 1990s until Americans witnessed the largest spike in the country’s housing market history.

By the second quarter of 1990, without adjusting for inflation, the average cost of a home reached $151,200, according to FRED.

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The inflation-adjusted price in 2024 dollars would be $354,858.

Over the span of five years, the market ebbed and flowed before surpassing the average cost noted above in 1994.

THE ‘OLD AMERICAN DREAM DIED,’ REALTOR DETAILS SALARY NEEDED TO BUY A HOME, AFFORD A MIDDLE-CLASS LIFE IN 2024

By 1999, the housing market reached its peak at $204,800, not adjusted for inflation, FRED reported.

The 2024 inflation-adjusted price would be equivalent to about $377,080; that’s a price increase of 84.12%.

At the turn of the 21st century, the average cost of an American home had decreased to $202,900, or $361,433 when adjusted for inflation, according to FRED.

The housing market then had a steady increase for nearly six years — apart from a brief drop in 2004.

Once 2007 hit, the market reached its peak, with homes costing an average of $322,100. That equates to $476,521 in 2024 — all leading up to the infamous stock market crash of 2008.

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AMID INFLATION, CHECK OUT THE PRICE OF GROCERIES THE DECADE YOU WERE BORN

From the beginning of 2008 until the start of 2009, the housing market dropped from $304,200, (which would be equivalent to $433,399 in 2024), to $257,000, or $366,161 when adjusted for inflation, FRED reported from the U.S. Census Bureau.

By the end of the decade, the housing market had not recovered as the average cost of homes remained under $280,000.

At the beginning of 2010, the average cost of homes was $275,300, or $387,277 in 2024 due to inflation.

In the span of four years, the market steadily climbed, reaching the unadjusted inflation cost of $369,400 by the end of 2014, according to FRED.

THESE HOUSING MARKETS ARE EXPECTED TO SEE DOUBLE-DIGIT SALES GROWTH IN 2024

By 2018, the average cost of an American home was $399,700, or $488,024 with 2024 inflation adjustments.

Over the next two years, there was a nearly $30,000 drop — a moment of calm before the housing market storm amid COVID-19.

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The housing market saw its largest spike starting in 2020 and leading into 2022.

In 2020, the average cost of an American home was $374,500, FRED reported. 

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The adjusted 2024 inflation price equals $443,860.

Over the course of two years, the housing market surged by more than $175,000.

By the end of 2022, the average cost of a home in the U.S. peaked at $552,600, FRED research shows.

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The 2024 adjusted inflation cost is equivalent to $579,205.

For more Lifestyle articles, visit www.foxbusiness.com/lifestyle.

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