U.S. home prices rose 2.4 times the inflation rate over the past 60 years, meaning a $500,000 house would cost $177,000 if homes had just increased at the same rate as other prices.
More simply, prices are ten times higher today than in 1963, but housing prices are 24 times higher. Experts say the added costs are due to a housing supply shortage, the high cost of land, the increased average size of homes, and various zoning restrictions.
Surveys consistently show that housing costs have a political impact. A Redfin survey shows that over 50% of Americans say affordability affects their voting plans, and another survey shows it as the No. 1 issue for liberals and No. 3 for conservatives.