March 20, 2013 |
We talk a lot about home prices. We compare average prices today to a year ago, 10 years ago, or more.
But there’s a flaw in doing this. To rationally compare the price of an average home today to an average home any number of years ago, you have to assume that the two homes are the same — apples to apples. But they’re not. The average American home has changed drastically over the last three decades.
The median new home built in 2012 was 2,309 square feet, according to the Census Bureau. That was a new record, up nearly 10% in the last decade. Plot the average since 1974, and our humble abodes have grown by more than half:
The Incredible Growing Home.