Inflation in the price of housing

Source

Looks grim.

Let's compare three states:

Maryland: Knowledge worker based, congested Atlantic corridor. From 1950 until 2024 the median house value appreciated 288% MORE than inflation.

Michigan: Rust-belt. Mid-West. From 1950 until 2024 the median house value appreciated 144% MORE than inflation. That doesn't sound like much but if the median house in Michigan sold for $244k in 2024 then the median house in Michigan in 1950 would sell for $100k inflation-adjusted dollars.

California: Aspirational address for most of the last 75 years. West Coast. From 1950 until 2024 the median house value appreciated by 500%. So if the median house sold for $100k inflation-adjusted dollars in 1950 then the median house now sells for $600k.

Size matters 

What is NOT often considered is that the square-feet of newly built houses ballooned during that same period.

Going to the census records from 1950-2000, I found out that the size of the average single family house in 1950 was 983 square feet. By 2000, the average house size shot up to 2,272 square feet...   -Source

That is a 130% increase.

The median size peaked in 2015 at about 2500 square-feet but has since fallen back to about 2200 square feet. Source 

If you look that increase in footprint, air conditioning, improved windows, insulation, one bathroom-per-occupant and expansive kitchens (both high$/sq-ft spaces), then a 200% increase in the cost of the median cost per single occupant house is not unreasonable.

States that are over that 200% increase is something the younger generations can legitimately complain about, especially for states whose star is fading.

Hat-tip to the still tireless Lucas Machias