Housing costs can be a big portion of a budget. How does your community compare to the national average?

Answer: $511,100

Average sales price of new homes sold in the United States from 1965 to 2023

Questions:

• How has the cost of housing trended over the last 60 years? Why do you think that is?
• How might the steady rise in home prices affect affordability for first-time homebuyers?
• Is real estate a solid long-term investment? Why or why not?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom

Behind the numbers (Statista): 

"After a dramatic increase in 2022, the average sales price of a new home in the United States dropped slightly in 2023 from 540,000 to 511,100 U.S. dollars. The average sales price of a new home exceeded 400,000 U.S. dollars for the first time in 2021. 

One of the major factors behind the dramatic increase in house prices was the low cost of borrowing. In 2020 and 2021, mortgage rates reached a historic low: Homebuyers could take out a loan with a 15-year mortgage rate of less than 2.5 percent. Demand rose and in 2021, the number of housing transactions peaked at almost seven million."

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Teach your students more about home-buying through the NGPF Mini-Unit: Buying a House!

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.