Unexpectedly Intriguing!
03 March 2016

We had to wait until Monday, 29 February 2016 to get the monthly household income data from Sentier Research for December 2015, but we're now able to update our chart showing the trajectory of median new home sale prices versus median household income for each month of the last 15 years over which this data is available.

U.S. Median New Home Sale Prices vs Median Household Income, December 2000 through December 2015

According to the chart, the trailing twelve month average of median U.S. new home sale prices peaked in September 2015 at $296,375. Since then, as median household incomes have risen, new homes have become more affordable, as they have not risen in price in recent months.

Affordability is a relative concept however where median new home sale prices are concerned. If the long term relationship that existed between median new home sale prices and median household income during the years from 1987 through 1999 still held, median new home sale prices today would cost almost 30% less than they actually do.

Meanwhile, if we consider the more recent relationship that existed between median new home sale prices and median household income from December 2010 until July 2012, basically the period of time in which new home sale prices stabilized after the popping of the first U.S. housing bubble and before the onset of the second U.S. housing bubble, median new home sale prices today are about 18% higher than that relative level of affordability.

So in case you're wondering where a good part of all the inflation is hiding....


Sentier Research. Household Income Trends: December 2015. [PDF Document]. 29 February 2016. [Note: We have converted all the older inflation-adjusted values presented in this source to be in terms of their original, nominal values (a.k.a. "current U.S. dollars") for use in our charts, which means that we have a true apples-to-apples basis for pairing this data with the median new home sale price data reported by the U.S. Census Bureau.]

U.S. Census Bureau. Median and Average Sales Prices of New Homes Sold in the United States. [Excel Spreadsheet]. Accessed 29 February 2016.

Labels: , ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations

Thanks in advance!

Recent Posts

Indices, Futures, and Bonds

Closing values for previous trading day.

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified