Six years ago, I stumbled upon a fascinating graphic showing the booms and busts of American home prices. The creator, u/WargFlow, did an amazing job of visualizing the data, and it sparked a lot of interest. Since then, many people have asked for an update, and now that the Census data for 2024 is out, it’s time to refresh the numbers.
What’s interesting is that home prices have been on a wild ride over the years. From the post-war boom to the 2008 crash, and now the current trends, it’s essential to understand the patterns and what they mean for the economy.
## The Data Behind the Graphic
The updated graphic uses data from the US Census Bureau, adjusted for 2024 inflation. What’s striking is that the earlier visualization used 2010 inflation-adjusted dollars, which makes a significant difference.
## What the Data Tells Us
The graphic shows us that home prices have been steadily increasing since 2012, with some fluctuations. But what’s behind these trends? Is it supply and demand, economic policies, or something else?
## Understanding the Trends
To make sense of the data, we need to look at the broader economic context. For example, low interest rates and government policies can stimulate the housing market, leading to price increases. On the other hand, external shocks like the 2008 financial crisis can cause prices to plummet.
## What’s Next?
As we move forward, it’s essential to keep an eye on these trends and how they affect the economy. Will we see another boom or a bust? Only time will tell.
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*Further reading: US Census Bureau – Characteristics of New Housing*