By Some Measures Houses Are Still Cheap

Boomers demand bigger homes, more amenities - and builders deliver.


MSNBC.com reports that 25 years ago, the average price of a new home in the United States was $76,400, according to the National Association of Homebuilders. By last year the price had shot up to $274,500. But in 1980, the average home was only 1,740 square feet, whereas last year the average new home buyer bought 2,349 square feet.

The homes today also have many more features that the ones built 25 years ago, which has helped raise the price of a new home. The article states that while there are still plenty of would-be-homeowners who feel priced out of the housing market, when you look at overall buying power and affordability, housing prices in the United States is as cheap as it's been in 25 years.

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Photo courtesy of Peak One Builders, crafting custom homes in Scottsdale and Rio Verde.