Report: Home prices have grown 2x faster than income since 2000 — the median U.S. home should cost $294,000 instead of $433,1001
Home Prices Soar as Incomes Lag Behind
Home prices across the United States have skyrocketed in recent decades, far outpacing growth in household incomes. According to new research, home prices have grown over 2 times faster than incomes since the year 2000.
If home prices had increased at the same rate as incomes since 2000, the median U.S. home would cost $294,000 today — about 32% less than the actual median price of $433,100. This stark disconnect between home prices and wages has created a severe affordability crisis for aspiring homebuyers.
“Home prices have soared 162% since 2000, while income has only increased 78%,” said the report’s authors from Home Bay, a real estate research firm. “Crunching these numbers reveals that home prices have grown 2.1 times faster than income since 2000, which helps explain the affordability crisis in the U.S. housing market.”
