Every 10 years, it’s proven that home prices double. So, is right now a good time to buy one? Let me break it down for you.
Here’s how much the median home value in the U.S. has changed between 1940 and 2000:
- 1940: $2,938
- 1950: $7,354
- 1960: $11,900
- 1970: $17,000
- 1980: $47,200
- 1990: $79,100
- 2000: $119,600
- 2010: $135,000
- 2020: $236,000
- 2022: $358,000
These numbers are not adjusted for inflation. They also do not include the devaluation of the dollar, the cost of interest paid to the bank, property taxes, or maintenance.
Home prices are proven to rise over time
If you priced apartments over the same period of time, you would have your mind blown:
A double every decade while you receive cash flow and rental increases.
Notice during periods of the highest interest rates — 1970 to 1990s — prices rose faster home prices went up almost 4X.
Pay attention that even with the housing crisis of 2008, home prices almost doubled between the end of the crisis, 2010 and 2020.
Then take a look at what has happened since Covid. You’ll see how the average price of a home in the US has increased in just the last 24 months.
This brings me to the big question…
Is it still a good time to buy?
While homes in some towns remained affordable, buyers in places like Manhattan, Miami, Austin, Los Angeles, and San Francisco will have to fork over between 95% and 120% of their average paycheck to afford a mortgage payment.
Put 20-30% of the purchase price down and you may still lose the deal to an all-cash buyer who has no intention of living in the house but will rent it out for the cash flow.
So, what do I suggest you do?
Buy properties you can rent to others.
Look for cities where there is a shortage of homes for sale and barriers to entry. In other words, where it’s difficult or prohibitive to build new housing inventory.
Once you know what you are doing, these requirements are not hard to find.
Then, focus on properties — particularly duplexes and fourplexes — where the rent is $400 lower than what rent is for similar rentals in the market.
When you find just 16 units where the rent can be raised only $400 per unit, you increase the value of the property by $1.2m.
The best is yet to come
So, knowing this home prices trend, is it still a good time to buy real estate?
I am asked that same question daily. And I can tell you there are markets out there that are screaming buys that will produce hundreds of millions of dollars of profits for people just like you.
Every week, I work with 250 students who pay $25,000 a year to access my exclusive real estate club.
Because I have done $5 billion in deals, professional real estate investors pay me as much as $100,000 a year to consult them on specific real estate deals. Just this week, I helped Brad secure his first $3M deal, Carlos a $21M deal, and Robert a $70M deal.
Real estate has proven itself for a hundred years, and I believe the best is yet to come. You just have to know specifically what you are looking for.
AND YOU NEED TO KNOW THE EXACT FORMULA — THE MATH — NECESSARY TO ENSURE YOUR FIRST DEAL IS A GAME-CHANGER.
Understand I am not talking about just buying a home. I want to teach you how your first deal can change your life!
If you are serious and willing to set aside a minute, I will teach you for FREE exactly what you should be looking for and how to get your first deal. I will even show you how to do it with little or no money and a poor credit score.
Access my free training now to 10X your real estate investing knowledge.
Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.