What We're Showing
This chart compares median American household income and the median sales price of a U.S. home in 1985 and 2025, along with average 30-year mortgage rates for each year. The data comes from the Federal Reserve Bank of St. Louis and Motio Research.
Key Takeaways
- From 1985 to 2025, the median annual household income in the U.S. increased by 252%, rising from $23,620 to $83,150
- Meanwhile, median home prices surged by 403%, climbing from $82,800 to $416,900 over the same period
- Average 30-year fixed mortgage rates have fallen from 12.4% in 1985 to 6.8% in 2025, making borrowing relatively cheaper despite higher home prices
- In 1985, the median home cost was about 3.5 times the median annual income. In 2025, it’s 5 times the income, highlighting a widening affordability gap
