📈 U.S. Nominal vs. Real House Price Index Trends (1970–2024)
This chart compares the U.S. Nominal and Real House Price Index from 1970 to the second quarter of 2024, using a base year of 2010 (index set at 100). The red line represents nominal house prices, which are not adjusted for inflation, while the blue line represents real house prices, which are adjusted for inflation.
Key points marked on the chart include:
Late 1980s: A sharp surge in home prices, especially in the Northeast and West of the U.S.
Early 2000s: Rapid price increases due to low interest rates, easy credit conditions, and high demand for housing.
2007–2008 Financial Crisis: The U.S. housing bubble burst, causing a sharp decline in both nominal and real house prices.
2020 COVID-19 Pandemic: House prices, particularly nominal prices, increased dramatically as a result of various pandemic-related factors.
From the early 1970s until the early 2000s, nominal and real prices grew at a relatively steady rate. Post-2000, the nominal index (red) began diverging from the real index (blue), reflecting the impact of inflation. The gap widened sharply after the COVID-19 pandemic, with nominal house prices reaching a significantly higher peak than real prices by 2024.