Homes are more expensive than ever—here's how much prices have skyrocketed since 1965
Homes are more expensive than ever—here's how much prices have skyrocketed since 1965
If homes seem more expensive than ever, it's because they are — .
U.S. homebuyers are spending more than double to buy a home now than they were in 1965, when the median home price was $20,200, according to U.S. Census data.
In 2024 dollars, that works out to roughly $202,215, which is less than half of the $420,800 that a home costs today, per U.S. Census data.
Here's how much the median home value in the U.S. has changed between 1965 and 2024:
- 1965: $20,200
- 1975: $38,100
- 1985: $82,800
- 1995: $130,000
- 2005: $232,500
- 2015: $289,200
- 2024: $420,800
Here are those values again, adjusted for inflation, in 2024 dollars:
- 1965: $202,215
- 1975: $228,404
- 1985: $245,129
- 1995: $270,147
- 2005: $380,793
- 2015: $386,494
- 2024: $420,800
In 1965, the median annual household income was $6,900, per U.S Census data. With homes selling for a median price of $20,200, a median earner would spend just under three times their income on a home.
In 2024, the median annual household income is estimated to be $78,171, according to data consulting firm Motio Research. That means that a typical homebuyer is spending 5.3 times their income on a home at today's median price.
The ramp up in home prices has been particularly stark since the onset of the Covid-19 pandemic, with prices increasing 30% since March 2020.
Consequently, even affording a down payment for a home can be a challenge for potential buyers with limited savings, especially those who are younger or saddled with student loan debt — or both.
Increasingly, only the wealthiest Americans can afford to own a home. To afford a median-priced home with a 20% payment in 2024, a buyer needs to earn a median income of $100,000 or more in all but 14 states, according to a recent Bankrate analysis.
It's perhaps not surprising the median age of first-time homebuyers has crept up in recent years to 35, according to data from the National Association of Realtors. In 2010, the median age of first-time buyers was 30.
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