New single-family homes built and sold in the U.S. are growing increasingly pricier. While in 2002, the average price of such a home was $228,000, that had increased to $385,000 in 2018. Meanwhile, overall prices rose 36 percent in the same time frame, making 2018 home still $75,000 pricier on average after being adjusted for inflation.
The segment of expensive houses costing more than $400,000 each accounted for only 9 percent of homes sold in the U.S. in 2002. In 2018, the segment had grown to 34 percent. The share of houses costing less than $150,000 decreased during this time from 30 percent to 3 percent, according to the Census Bureau.
The financial crisis and the U.S. housing bubble saw the number of affordable homes in the U.S.
rise again in 2008 and 2009, but only momentarily. Houses have not only been growing pricier, but also bigger and more luxurious with more space and more amenities translating to higher prices.