Housing costs can be a big portion of a budget. How does your community compare to the national average?

Answer: $535,800 as of Jan 26, 2023

Average sales price of new homes sold in the United States from 1965 to 2022

Questions:

• How has the cost of housing trended over the last 60 years? Why do you think that is?
• What causes the cost of housing to increase over time?
• Is real estate a solid long-term investment? Why or why not?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom

Behind the numbers (Statista): 

"After plateauing between 2017 and 2019, house prices in the United States saw a dramatic increase in 2021 and 2022. The average sales price of a new home in 2020 was 391,900 U.S. dollars and in 2022, it reached 543,600 U.S. dollars.

What drives the increase in house prices?

One of the major factors behind the dramatic increase in house prices was the low cost of borrowing. In 2020 and 2021, mortgage rates reached a historic low: Homebuyers could take out a loan with a 15-year mortgage rate of less than 2.5 percent. Demand rose and in 2021, the number of housing transactions peaked at almost seven million.

How has the coronavirus (COVID-19) pandemic affected Americans’ homeownership plans?

Overall, the coronavirus (COVID-19) pandemic has positively influenced the homeownership plans of Americans in 2020. According to a survey among U.S. adults, 28 percent of Millennials were more interested in buying a home due to the coronavirus pandemic compared to 13 percent who were less interested."

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Teach your students more about home-buying through the NGPF Mini-Unit: Buying a Home which will be released in early April!

About the Author

Mason Butts

After graduating from UCLA with a Master's in Education, Mason spent 5 years as a science educator in a South Los Angeles public high school. He is committed to supporting the holistic growth of all students and empowering them to live a life of relational, academic, and financial success. Now settled in the Bay Area, Mason enjoys facilitating professional developments and partnering with educators as they prepare students for a bright financial future. When Mason is not building curriculum or planning a training, he can be found cycling, trying new foods, and exploring the outdoors.