The average price per square foot of floor space in new single-family housing in the United States decreased after the great financial crisis, followed by several years of stagnation. Since 2012, the price has continuously increased, hitting 168 U.S. dollars per square foot in 2022. In the same year, the average sales price of a new home was 540,000 U.S. dollars.
Development of house sales in the U.S.
One of the reasons for house prices increasing in recent years is the continuous growth of house sales. Despite the coronavirus (COVID-19) pandemic, the demand for newly built housing remained strong and although the number of home sales decreased in 2021, sales volumes remained notably higher than the period before the pandemic. The soaring construction costs additionally impacted prices.
Financing a house purchase
Only a small portion of house purchases are done in cash, while the vast majority are financed through a conventional mortgage. Federal Housing Administration (FHA) insured loans are targeted towards low- and moderate- income borrowers, while loans guaranteed by the United States Veterans Affairs (VA) are available to veterans and military members.