Sources: House Price Index for the United States - Federal Reserve Economic Data (FRED)

In 1950, the median home price was just $7,354. It peakat at $227,100 in 2006.
The 1950 price in inflation-adjusted dollars was $44,600.

What's the reason for the dramatic increase? More Home Means More Money One driver of home prices is size. In 1950, the average home size was less than 1,000 square feet with two bedrooms and one bath. By 1970, the average home was 1,500 square feet and included a third bedroom and another half-bath.

When home prices peaked, the average home was two stories and 2,500 square feet with two and a half baths and a two-car garage.

Year	sq ft	price	$/sq ft
1950	1000	$7,354.00	$7.35
1970	1500	$17,002.00	$11.33
2006	2500	$227,100.00	$90.84

Price per Square Ft increased an average of 4.6%/year from 1950 to 2006
Note: price per Sq. Ft. is over $200 in major metropolitan areas.
Source: 60 Years of Home Prices: The Difference Will Shock You - daveramsey.com

Census Bureau data Monthly Data

On an inflation-adjusted basis, we're actually paying slightly less today than the cost per square foot in 1973. Overall, the increasing size, improving quality, and relative affordability of new homes today means that living standards continue to gradually, but consistently, improve year after year for most Americans.
Price per Square Ft increased an average of 4.2%/year from 1973 to 2013
Source: Today's new homes are 1,000 square feet larger than in 1973, and the living space per person has doubled over last 40 years | Mark J. Perry, American Enterprise Institute (AEI)

Source: Historic Mortgage Rates | MortgageNewsDaily

Income property vs Stocks:
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