Leave a Message

Thank you for your message. We will be in touch with you shortly.

Study: Home Prices Outpaced Inflation By 2.4X Since 2013

WRE News March 15, 2024

Buyer

Study: Home Prices Outpaced Inflation By 2.4X Since 2013

For more than 60 years, home prices have raced ahead of inflation levels – and the gap has expanded considerably over the past decade.

According to a new data analysis from St. Louis-based Clever Real Estate, home prices today are 24 times higher than they were in 1963 – in comparison, inflation is only 10 times higher. The data analysis determined that if home prices had kept pace with overall inflation since 1963, the median American home would cost only $177,511 today, which is roughly 2.4 times less than the current median price of $431,000.

The data analysis also showed increased 31% over the past decade while home prices are up 63% (from $264,800 to $431,000).

Home prices have also raced ahead of incomes. Since 1985, incomes have risen 3.2 times while home prices rose 5.6 times during the same period. As a result, purchasing a typical home today requires 6.3 years’ worth of household income, more than double the 3.5 years required in the 1980s.

Of the country’s 50 largest metro areas, the data analysis found 14 where the typical home price at least tripled since 2000. Miami’s home prices have increased the most (299%), while Cleveland’s have increased the least (78%). Among states, Hawaii has seen the largest home price increases since 2000 (309%), while Louisiana has seen the smallest (86%).

However, last year offered an anomaly when inflation rose faster than home prices for the first time since 2011. During 2023, home prices rose 2.6%, compared to a 3.3% increase in inflation.


Recent Blog Posts

Stay up to date on the latest real estate trends.

Lifestyle

3 Ways Parents Protect Kids From Social Media’s Mental Health Effects

December 21, 2024

Parents are increasingly aware that too much time on social media can harm kids’ and teens’ mental health.

Lifestyle

Christmas Star 2024: When To Show Your Kids The ‘Star Of Bethlehem’ Tonight

December 21, 2024

What’s the bright star in the east — and west?

Lifestyle

20 Innovative Breakthroughs That Will Transform Your Health

December 21, 2024

There are always new frontiers in health care: diseases whose treatment and cures still elude us; biological and medical mysteries that we’re yet to crack; public heal… Read more

Buyer

‘Silver Tsunami’ of Aging Boomers With $17 Trillion in Home Equity Will Trigger Wave of Wealth for Their Kids

December 20, 2024

Children of baby boomers are set to be on the receiving end of one of the largest generational wealth transfers in history as their parents prepare to bequeath them a … Read more

Buyer

Title Insurance Premium Volume Up 5.3% in Q3

December 20, 2024

The title insurance industry generated $4.3 billion in title insurance premiums during the third quarter, according to new data from the American Land Title Associatio… Read more

Lifestyle

Michael Phelps Says These 2 Parenting Tricks Are His Key To Raising Mentally Healthy Kids

December 20, 2024

When Olympic swimmer Michael Phelps wakes up in the morning, he asks himself how he can be his best self that day, not only for his own mental health, but also for his… Read more

We are Your GPS to Success Let’s Get Started

We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today

Follow Us On Instagram