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This was the average cost of an American home in the decade you were born
From 1940 to 1980, see how the US housing market spiked

By Sydney Borchers FOXBusiness
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It is a challenging time in the housing market: Danielle Hale
The cost of American homes has skyrocketed over the years due to
inflation, and you may be amazed at just how much the market has changed
over the past 80 years.

See the major ups and downs of the market by looking at the average cost
of homes going all the way back to 1940.

Prices have fluctuated over time and the historical Census and Federal
Reserve Economic Data (FRED) have meticulously documented the ebb and
flow of the housing market.

WHAT LIFE WAS LIKE 50 YEARS AGO IN AMERICA, COMPARED TO NOW IN 2024

Read on to see the average cost of homes in the decade you were born —
and then stay tuned for more like this.

Home from 1940s
In the 1940s, the average cost of a home was $2,938. Adjusted for
inflation in 2024 dollars, that is equivalent to $64,372.84 today. (H.
Armstrong Roberts/ClassicStock/Getty Images / Getty Images)

1940
In 1940, without adjusting for inflation, the average cost of a home in
the United States was $2,938, according to the United States Census Bureau.

The inflation-adjusted price in 2024 dollars would make that $64,372.84.

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

When compared to 1940, today's prices are 21.91 times as high as the
average price 80 years ago.

Home from 1950s
U.S. Census data reported that the average cost of a home in 1950 was
$7,354 in the United States. (H. Armstrong Roberts/ClassicStock /Getty
Images / Getty Images)

1950
In the span of 10 years, from 1940 to 1950, the average cost of a home
jumped to $7,354, according to Census data.

That equals $93,602.08 today as adjusted for inflation, FRED reports.

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

Housing prices in 2024 have increased 12.73 times since 1950.

Home from 1960s
From 1963 to 1970, the average cost of a home jumped from $19,300 to
$27,000, according to FRED. (H. Armstrong Roberts/ClassicStock/Getty
Images / Getty Images)

1960
The average cost of a home jumped significantly in the early years, with
the cost of homes finally surpassing $10,000.

In 1960, homes cost $11,900 or $123,320.18 when adjusted for inflation,
the Census documented.

COLLEGE GRADUATES NEED THESE 10 'INFLATION-PROOF' CAREER AND MONEY TIPS NOW

Once 1963 arrived, the average cost of a home hit $19,300, which equates
to $193,470.52 in 2024.

By the end of the decade, houses were costing Americans $27,000, which
is $213,457.27 adjusted for 2024 inflation, according to FRED.

Home from 1970s
At the beginning of the '70s, the average price of a home was $27,000,
but by the end of the decade, a home was now costing Americans $74,200.
(H. Armstrong Roberts/ClassicStock/Getty Images / Getty Images)

1970
The '70s showed an overall increase of nearly $50,000 from the beginning
of the decade to the end, per FRED calculations.

Between 1970 and 1975, the average cost of a home jumped from $27,000 to
$40,900 — which would be $213,457.27 and $233,195.38 in 2024, respectively.

'SKY-HIGH' EGG PRICES: HISTORICAL LOOK AT EGG COSTS SINCE 1980

The largest jump occurred at the end of the decade as prices reached
$74,200 in 1979, or $313,506.24 in today's inflation-adjusted dollars.

By the end of the decade, the average cost of a home in the U.S. was
$72,200 or $305,055.94 with inflation adjustments in 2024.

Home from 1980s
In the span of only four years, from 1984 to 1988, a home in the U.S.
increased by $43,000 on average. (A Teufen/Classicstock/Getty Images /
Getty Images)

1980
One of the biggest surges in home prices occurred in the 1980s, in terms
of the numbers at the start of the decade compared to the numbers in the
transition to the '90s.

Over the course of 10 years, from the start of the decade to the end of
it, the average cost of a home jumped from $73,600 to $151,200.

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A house priced at $73,600 would cost $273,986.72 in 2024 — while
dwellings listed for $151,200 would be $374,032.22 in 2024 due to
inflation, FRED reports.

The largest hike occurred between 1984 and 1988, with average home
prices increasing by more than $40,000.

housing market split
The housing market has continued to ebb and flow over the years, but do
you know how much the average cost of a home was 80 years ago? (iStock /
iStock)

Stay tuned for part two of this two-part series that will end in the
21st century and highlight one of the largest jumps in the history of
the housing market.

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

ronp705
1 day ago

Let's see, the average home size has more than doubled, the number of
bedrooms has increased, the number of bathrooms increased, most new
homes now have A/C, sprinkler systems, more insulation, higher energy
efficient windows, earthquake/hurricane proofing. and simply better
construction that the 1950's. Not an apples to apples comparison, but
interesting.

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gungho
1 day ago

It was not intended to be apples to apples but rather just a price
comparison.

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3 replies

semperfi_tx
17 minutes ago

That is only part of it. It doesn't matter about those things as people
were accustomed to living without them. If you think that is what drives
the prices, please explain the price explosion just over the last 5
years. Literally in 2023, the average price of a house was $431K
nationally. In 2019, it was $258K. There haven't been any "upgrades" in
the last 5 years to explain that explosion. It is 100% based on
inflation. Which is the point of the article. The first sentence reads,
"The cost of American homes has skyrocketed over the years due to
inflation..."

In fact, some of the things you mentioned are simply not true at all. By
the 1960s, MOST new homes did have central air conditioning. "By the
late 1960s, most new homes had central air conditioning, and window air
conditioners were more affordable than ever, fueling population growth
in hot-weather states..." That is from the Dept of Energy by the way. I
suggest you also look up when home irrigation systems actually started
being used as well. While the energy efficiency of homes has increased,
some of the things you mentioned are just wrong.

I think you missed the point of the article.

Youre.Just.Wrong
1 day ago

I hope the next part of the series explains how the geometric increase
in home prices includes the demand for greater square footage, more
regulation and stringent codes calling for more efficient materials,
greater safety, and more expensive outfitting such as big name brand
windows, siding, and i...

trueamericannationalist
1 day ago

I bought a house in 1990 close to where I was stationed for $55k. The
house was built in 1951, and erected on a cement slab (no basement). The
exterior walls were 2x3, interior room dividing walls were 2x2, and the
center load bearing wall was 2x4. The electrical service (Circuit
Breaker Box) was 50 Amp.

New this house cost $3,000. A house like this would never be allowed to
be built today with codes and regulations.

Apples to apples please....

sideshow
1 day ago

One can’t just build a house for their family anymore, it must be built
to conform with useless government regulations overseen by overpaid
government workers that are looking for their 10% too. Government
interference is never ending.

Looking4Truth
1 day ago

Make sure you add a ev car charger to the garage and wire the roof for
solar panels even if you can't afford either an electric car or solar
panels, pay now before the government employees lose all their stock
options.