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Median New Home Prices Rising Faster Than Median Household Income


  • In March 2020, the price of the typical new home sold in the U.S. rose to be 5.14 times the typical income of an American household.
  • Historically, there have been two periods where new homes have been more unaffordable with respect to median household income.
  • With the rising supply, median new home sale prices have declined since peaking in December 2020, though there is still momentum behind the increase in unaffordability for now.

Closeup of tablet being used to shop for a home
Photo by SDI Productions/iStock via Getty Images

If you've been paying attention to home prices, this isn't news, but new homes are becoming less affordable for the typical American household.

In March 2020, the price of the typical new home

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Comments (12)

DonPaul Olshove profile picture
The entire article is meaningless as it ignores interest rates.
@DonPaul Olshove , Interest rates will move higher over time with inflation unless they stop printing money (dinero).
Jerome Powell is causing homelessness.
3rd order slowing. That’s good sign.
@Ted Hu , They will slam millions of vacant homes on the market as soon as prices start going down.
It is called inflation. Get ready for more price hikes on everything.
@Prince Vinegar , Jerome Powell has been printing like a mad man and he keeps looking over his shoulder after Trump threatened to fire him if he didn't bring interest rates down to zero and open the full throttle on QE.
sheerace profile picture
The carry costs of houses broadly have to put a damper on prices....
@sheerace , They are expensive little critters!
@sheerace Not when there's no foreclosures.

The bubble would pop if non-performing mortgages were put back on the market.
Get used to rising Home Prices, this is just The Beginning!
@HereToWin , It's the end!
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