Four Decades of US Home Price Increases

Published On: June 28, 2024159 words0.8 min read

Over the past 40 years, U.S. home prices, as tracked by the Freddie Mac House Price Index, have experienced an increase of 494%. This growth varies significantly by state, with Washington leading the pack with an 828% increase, followed by Oregon at 699%, and Rhode Island at 668%. California comes in at a whopping 664%, that’s roughly 16.6% per year. You might be wondering, did the stock market beat that figure, the answer is no, and it’s not even close. Historical Returns for the stock market over the last 40 Years (1982 – 2022) yielded an annual return of 11.6%. When I said it’s not even close, it’s not even remotely close:

  • $100,000 invested with an annual return of 11.6% would produce a balance of $8,064,320 over 40 years.
  • $100,000 invested with an annual return of 16.6% would produce a balance of $46,552,393 over 40 years.

Given these facts it makes sense to invest some of your hard-earned IRA and 401k in residential real estate, we can show you how. Contact Contour Realty today.

Contour Realty

If you're looking for personalized, expert guidance in navigating your real estate journey, Contour Realty is here and happy to help you every step of the way.

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