Geek ChartsHome Prices, Inflation, and Family Income
Three lines set to 100 in 1970 and left to run for 55 years. The vertical gaps are the whole story: what homes did, what paychecks did, and what the dollar itself did.
| Year | Home index | Income index | CPI index | Average home price | Median family income |
|---|---|---|---|---|---|
| 1970 | 100 | 100 | 100 | $26,650 | $9,867 |
| 1971 | 105.4 | 104.3 | 104.4 | $28,100 | $10,290 |
| 1972 | 112.9 | 112.7 | 107.7 | $30,075 | $11,120 |
| 1973 | 131.7 | 122.1 | 114.4 | $35,100 | $12,050 |
| 1974 | 145.3 | 130.7 | 127.1 | $38,725 | $12,900 |
| 1975 | 159.6 | 139 | 138.7 | $42,525 | $13,720 |
| 1976 | 180.3 | 151.6 | 146.6 | $48,050 | $14,960 |
| 1977 | 203.9 | 162.3 | 156.2 | $54,350 | $16,010 |
| 1978 | 235.3 | 178.8 | 168 | $62,700 | $17,640 |
| 1979 | 269.8 | 198.5 | 187.1 | $71,900 | $19,590 |
| 1980 | 286.6 | 213 | 212.4 | $76,375 | $21,020 |
| 1981 | 312.1 | 226.9 | 234.3 | $83,175 | $22,390 |
| 1982 | 314.6 | 237.5 | 248.7 | $83,850 | $23,430 |
| 1983 | 336.9 | 249.1 | 256.7 | $89,775 | $24,580 |
| 1984 | 366 | 267.9 | 267.8 | $97,550 | $26,430 |
| 1985 | 378.3 | 281.1 | 277.3 | $100,825 | $27,740 |
| 1986 | 420.5 | 298.6 | 282.5 | $112,075 | $29,460 |
| 1987 | 478.7 | 313.9 | 292.8 | $127,575 | $30,970 |
| 1988 | 520.3 | 326.2 | 304.9 | $138,650 | $32,190 |
| 1989 | 555.8 | 346.7 | 319.6 | $148,125 | $34,210 |
| 1990 | 559.4 | 358.3 | 336.9 | $149,075 | $35,350 |
| 1991 | 552.6 | 364.2 | 351 | $147,275 | $35,940 |
| 1992 | 542.9 | 370.6 | 361.6 | $144,675 | $36,570 |
| 1993 | 553.4 | 374.6 | 372.4 | $147,475 | $36,960 |
| 1994 | 578.5 | 393 | 382 | $154,175 | $38,780 |
| 1995 | 591.9 | 411.6 | 392.8 | $157,750 | $40,610 |
| 1996 | 621.1 | 428.7 | 404.4 | $165,525 | $42,300 |
| 1997 | 656.2 | 451.7 | 413.7 | $174,875 | $44,570 |
| 1998 | 679.7 | 473.7 | 420.1 | $181,150 | $46,740 |
| 1999 | 730.5 | 494.9 | 429.4 | $194,675 | $48,830 |
| 2000 | 770.6 | 514.1 | 443.8 | $205,375 | $50,730 |
| 2001 | 791.9 | 521 | 456.4 | $211,050 | $51,410 |
| 2002 | 850.7 | 523.8 | 463.7 | $226,700 | $51,680 |
| 2003 | 917.6 | 533.9 | 474.2 | $244,550 | $52,680 |
| 2004 | 1021.1 | 547.9 | 486.9 | $272,125 | $54,060 |
| 2005 | 1093 | 569.5 | 503.4 | $291,275 | $56,190 |
| 2006 | 1140.3 | 592 | 519.6 | $303,900 | $58,410 |
| 2007 | 1162.5 | 621.9 | 534.3 | $309,800 | $61,360 |
| 2008 | 1084.7 | 623.5 | 554.9 | $289,075 | $61,520 |
| 2009 | 1010.7 | 609 | 552.8 | $269,350 | $60,090 |
| 2010 | 1020.7 | 610.5 | 562.1 | $272,025 | $60,240 |
| 2011 | 992.9 | 617.9 | 579.6 | $264,600 | $60,970 |
| 2012 | 1081.5 | 630.8 | 591.8 | $288,225 | $62,240 |
| 2013 | 1206.9 | 663.5 | 600.5 | $321,650 | $65,470 |
| 2014 | 1296.2 | 675.3 | 610.1 | $345,450 | $66,630 |
| 2015 | 1315 | 716.5 | 610.8 | $350,450 | $70,700 |
| 2016 | 1349.5 | 736.9 | 618.6 | $359,650 | $72,710 |
| 2017 | 1430.2 | 771.7 | 631.7 | $381,150 | $76,140 |
| 2018 | 1435.2 | 797.1 | 647.2 | $382,475 | $78,650 |
| 2019 | 1425.4 | 871.7 | 659 | $379,875 | $86,010 |
| 2020 | 1455.5 | 854.9 | 667 | $387,900 | $84,350 |
| 2021 | 1698.6 | 897.8 | 698.5 | $452,675 | $88,590 |
| 2022 | 1937.8 | 940 | 754.4 | $516,425 | $92,750 |
| 2023 | 1902.9 | 1021.6 | 785.3 | $507,125 | $100,800 |
| 2024 | 1905.7 | 1072.3 | 808.5 | $507,875 | $105,800 |
| 2025 | 1950.1 | n/a | 830.4 | $519,700 | n/a |
All three lines are nominal, so this is a true apples-to-apples race. There are two gaps to read. Home prices (red) pulling above income (blue) is the affordability squeeze: homes rose about 1.8 times faster than family incomes over the full stretch. Income sitting above inflation (cream) means paychecks did beat the cost of living, just nowhere near as fast as housing. The income series runs through 2024, the latest the Census has published.
What this means for you
If home prices grow faster than your income, the down payment target is not standing still while you save toward it. A buyer saving 10% of income toward a 5% down payment is chasing a number that has historically outrun the savings rate. That is not a reason to panic. It is the reason strategy beats patience: low down payment programs, down payment assistance, and gift funds exist precisely because of this chart.
This chart is real, and it is also smaller than social media says. Homes beat incomes by roughly 1.8x over 55 years, not 10x. Incomes genuinely outran inflation. The right conclusion is not that homeownership is impossible. It is that it takes more structure than it took in 1970, which is a solvable problem, not a verdict.
This is the chart behind the phrase “my clients feel priced out.” The feeling is grounded in 55 years of arithmetic, and the answer lives on the financing side: program selection, assistance layering, and payment structuring. Send the feeling, and the numbers conversation is handled from there.
A note on the data. All three series are nominal, which is what makes the comparison fair. Home prices are the average new home sold (Census ASPUS), used because it is the longest consistent dollar series; the median home shows the same shape at a slightly smaller multiple. Income is median family income, which reflects households adding second earners over these decades; individual wages grew slower. One line on this chart describes no individual market or file. Education only.
Related chart: The Mortgage Payment Burden.
Sources: Home prices are the Census and HUD average sales price of houses sold (ASPUS), annual averages of quarterly data, 1970 to 2025. Inflation is BLS CPI-U, all items, U.S. city average, annual averages (FRED: CPIAUCSL). Income is Census median family income in current dollars (FRED: MEFAINUSA646N), through 2024. All series are indexed to 1970 = 100; linear scale from zero.