Housing costs have risen dramatically worldwide since 1940. With worldwide economic and age group expansion, as well as increasing urbanization, housing demand has constantly increased, causing most house prices to climb. This trend is visible in both rich and emerging countries, as land, labor, and material costs have risen. In addition, higher income levels, improved credit availability, and government policies have all contributed to the rise in home costs. This has sparked concerns about housing affordability, particularly for lower-income people, as well as the possibility of a housing bubble.
It is difficult to determine how much house costs have risen since 1940 because the rate of increase varies greatly based on region and kind of housing. However, the trend in most parts of the world has been upward, particularly in urban areas, as demand for housing has exceeded supply. Furthermore, inflation, income growth, and government policies have all contributed to the rise in house costs. In 1940, the average house price in the United States was roughly $2,938. According to the National Association of Realtors (NAR), the average house price has grown greatly to $428,700 by 2020. This comes to a 14.3-fold increase in house costs, or an annual increase of around 8.8% during the last 80 years.
Aside from the United States, housing prices have risen significantly in other countries throughout the world. According to the ONS property Price Index, the average property price in the United Kingdom in 1940 was around £2,000, but by 2019, it had climbed to £250,000. This equates to a 125-fold growth in property values, or an annual gain of around 6.5% over the last 79 years. Finally, after 1940, housing prices have risen dramatically, with the rising tendency being more obvious in urban regions and select developed countries.
Although the rate of increase varies by region, the overall pattern over time has been one of fast rising home costs, raising worries about housing affordability, particularly for lower-income groups. Governments may need to investigate laws and initiatives to keep housing cheap and accessible for everyone, regardless of income.
