The median U.S. home price will likely hit $1 million around the year 2050, when the millennial generation is hitting the traditional age of retirement, a top housing economist has predicted.
"Essentially, in about 25 years the national median home price will be a million dollars," Lawrence Yun, chief economist at the National Association of Realtors®, said at a conference in Washington, DC, on Tuesday. "It may be hard to envision that, but back in 1990, the national median price was $90,000."
Yun noted that even San Francisco, considered an exorbitantly priced real estate market at the time, had a median price of only $250,000 in 1990.
Last month, the national median sales price for existing homes was nearly $430,000. Yun used multiple scenarios to project home prices out into the future, and says each scenario pointed to roughly the same timeline to hit $1 million: about 25 years.
"Homeowners will continue to build wealth, while renters are simply spinning their wheels," Yun said, addressing NAR members at the group's annual Legislative Meetings conference.
"Essentially, in about 25 years the national median home price will be a million dollars," Lawrence Yun, chief economist at the National Association of Realtors®, said at a conference in Washington, DC, on Tuesday. "It may be hard to envision that, but back in 1990, the national median price was $90,000."
Yun noted that even San Francisco, considered an exorbitantly priced real estate market at the time, had a median price of only $250,000 in 1990.
Last month, the national median sales price for existing homes was nearly $430,000. Yun used multiple scenarios to project home prices out into the future, and says each scenario pointed to roughly the same timeline to hit $1 million: about 25 years.
"Homeowners will continue to build wealth, while renters are simply spinning their wheels," Yun said, addressing NAR members at the group's annual Legislative Meetings conference.
The Typical Home Will Cost a Million Dollars as Millennials Hit Retirement, Economist Says
Home prices will likely hit $1 million around the year 2050, when the millennial generation is hitting retirement, a top economist predicts.
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