1. US home prices have surged 47.1% so far in the 2020s, surpassing growth seen in previous decades.
2. Demand from millennial home buyers has helped drive prices higher despite mortgage rates doubling from COVID-era lows.
3. Median home sale price in the US reached $420,800 in the first quarter of the year, up significantly from the start of the decade.
US home prices have surged by 47.1% in the first four years of the 2020s, exceeding the growth seen in the 1990s and 2010s, which were 30.1% and 44.7% respectively. This decade’s housing price growth is also nearing the total growth seen in the 2000s, which was 47.3% before the 2007 housing market crash. The strong home-price gains in this decade have been primarily driven by a buyers’ frenzy at the beginning of the COVID-19 pandemic, resulting in a 20% price appreciation in just 12 months.
Despite mortgage rates being around 7%, double their lows during the COVID era, US home prices continue to rise due to high demand and limited supply. The median US home sale price reached $420,800 in the first quarter of the year, significantly higher than the $327,100 price at the beginning of the decade. Housing prices have seen a significant increase over the decades, with the median home price sold in the US being $219,000 at the start of the 2010s, $165,300 at the start of the 2000s, and $124,800 at the start of the 1990s.
According to ResiClub co-founder Lance Lambert, the first 50 months of this decade have seen a faster pace of housing price growth compared to the same timeframe in the last three decades. The ongoing surge in demand from millennial home buyers continues to push home prices higher, despite the increase in mortgage rates.