Average Cost of a House
Housing is one of the most basic human needs, and the demand for it will never cease to exist. Despite the slow-down caused by the crash of 2008, the housing market value has been growing steadily since, with the average cost of a house even overtaking previous heights. This is just one of the reasons why people who plan on acquiring some real estate must do their due diligence before committing to an investment, which is where our research on the matter comes in. Read on!
Average Cost of a House Stats & Facts
- The average house in California costs $440,000.
- The prices of homes in Texas grew by 7.5% in 2020.
- In 1950, the median home in the United States was priced at $7,400.
- It costs between $25,000 and $125,000 to furnish a house.
- Building a house yourself costs between $150,000 and $450,000.
Average House Price by State
The Average Cost of a House in Colorado
In this state, popular both for living and tourism, the average value of homes is $442,766, marking an 8.6% increase over the past year. This is about the same as it has been every year since 2012 after the fallout from the 2008 crisis. Experts, however, forecast that the prices will cool down as many people from this state won’t be able to afford housing anymore if costs keep growing at this rate.
In Denver, the average price for a home is $484,264, while in Colorado Springs, it stands at $348,477. The highest prices registered are the ones from Boulder, averaging $809,491, with the city often getting high rankings in quality of life.
(Zillow, HastagColoradoLife, DaveRamsey)
The Average Cost of a House in Florida
There is land scarcity in some places in The Sunshine State, which fuels real estate costs. However, this is not true everywhere. As a matter of fact, in some areas, free land is abundant, and even a surprising amount of Florida’s coastline remains underdeveloped. The median home price in May 2020 was reported at $335,000, which is very close to the national average.
A house in Miami will cost buyers about $454,502 and will be $2,155 per month to rent. At the other end of the spectrum, Tampa residents must spend $255,976 to buy a house and $1,129 on rent.
The Average Cost of a House in Texas
Texas has become a popular destination to move to lately. Many people from California and New York flock there, displeased with how their former states’ administration handled the pandemic. This only adds up to the other previous wave of movers triggered by the recent local oil boom.
All these new migrants need housing, so, naturally, the prices of real estate in the Lone Star State have gone up. In 2020 alone, home values grew by 7.5%. The average cost for a Texas house now stands at $224,466.
(CultureMap Dallas, Zillow)
The Average Cost of a House in Hawaii
As one of the places in the US with the highest cost of living, major tourist destination Hawaii requires an income of around $120,000 per year to live a comfortable life. This is 30% more than the national average. A study done by Neighbourhood Scout places the median home value in the Aloha State at $672,429. More than 82% of Hawaii’s houses cost more than $357,218.
In Waipahu, the average home will set you back $720,048, but in Hilo, it is a ‘modest’ $363,712. House prospectors should also consider that Hawaii has one of the lowest property tax rates in the nation, averaging only 0.27%.
(Schmidt International Relocations, SmartAsset)
The Average Cost of a House in Michigan
The cost of living in this state is below the national average. An adult is estimated to require just $28,354 pre-tax income per year to sustain themselves comfortably here. Michigan has experienced a sharp decline in population caused by the automation of jobs in the auto industry, which used to be booming in this state. Detroit alone has gone from 1.8 million residents in 1950 to only about 670,000 today.
Along with the high amount of free space, these factors have created the perfect environment for low real-estate prices. Therefore, Michigan homeowners pay $192,093 on average for their properties.
(LivingWageMIT, Bridge Michigan)
The Average Cost of a House in California
The average cost of houses in California stands at $700,000, much higher than the national median. These high prices, coupled with favorable weather, cause social unrest due to housing crises in some places of this state, such as Los Angeles and San Francisco.
The cost of a house is still on an upward trend, having gained 21% since October 2020. If we were to take only the prices of typical homes (just the middle-priced tier), the median home prices by state for California are approximately $722,406.
Average House Price by City
Not only does the national average offer a skewed view of the US housing market, but even prices by state can show a distorted picture. In some places of the country, the differences can get drastic from one city to another. Then, there are locations with exceptional circumstances, which deserve a special mention.
The Average Cost of a House in San Francisco
Since the late 20th century, San Francisco and the surrounding area have become a tech-hub and a spearhead of innovation. With many Fortune 500 companies choosing the city as a base, San Francisco has also seen an influx of highly paid workers. This has caused an almost exponential growth in housing costs, up to the point of becoming among the highest in America.
Another fact that exacerbates the situation is the relatively small land available as San Francisco has fewer than 49 square miles and is surrounded on three sides by water. The staggering average cost here is $1.3 million.
The Average Cost of a House in Los Angeles
L.A. is no exception from the rest of the state as the prices here have also gone up, despite the occurring crises. In 2020, the home values rose by 9.9%. The typical home in the City of Angels will cost you approximately $809,865. Over the past decade, real estate prices have doubled, and the trend doesn’t seem to have any end in sight.
The Average Cost of a House in San Diego
San Diego requires a minimum of $96,000/year or $8,000 per month to cover necessities and sustain a comfortable living. San Diego residents must dish out between $160,000 and $220,000 per year for the upper-middle-class lifestyle.
Typically, an average house in this city costs $741,195, and in 2020, prices rose by approximately 13.2%.
The Average Cost of a House in Seattle
Moving north, to live comfortably in the Emerald City, you need to make $72,092 per year, out of which you are expected to pay 50% ($36,046) for necessities and 30% ($21,628) on discretionary spendings. In 2020, the recorded median price for a house in Seattle was $670,000, marking an increase of 9.32% since 2019. Living in the home base of Amazon costs 33.0% lower than in New York, while employers typically only pay 10% more in the Big Apple.
(Seattle Refined, Norada Real Estate Investments, Salary)
The Average Cost of a House in New York City
On the East Coast, in none other than NYC, the city that never sleeps, housing prices don’t sleep either. Even though real-estate costs haven’t been growing as fast as in other years, 2020 still brought a 2.4% increase.
Typically, a house in the New York City area will cost about $657,637, even though in some places like Manhattan, it will get much higher than that. Renting isn’t cheap either, as studio owners ask for approximately $1,889 a month, and a one-bedroom apartment is priced at $2,098.
Median Housing Price Outside the US
Getting a home in the United States is no easy feat. If the market trends of the average house costs tell us anything, it’s that it’s not getting any easier any time soon. To put things into perspective, here’s the data from around the world.
The Average Cost of a House in Canada
According to the Canadian Real Estate Association (CREA), it costs $480,743 on average to buy a house north of the border. The exact amount will vary, however, from one region to another.
In general, homes are cheaper than in the US, which is a significant attraction for many people looking to relocate abroad. For the complete picture, get this: in Vancouver, a house will cost approximately $1,036,000 while Fredericton residents pay only $198,000.
The Average House Cost in Toronto
Housing prices seem to have gone up everywhere, despite the pandemic, and Toronto is no exception. As a matter of fact, the average selling prices for homes here are set to break the $1-million mark in 2021, according to the Toronto Regional Real Estate Board.
It’s no surprise that given such high housing costs alone, the average that you will need to make to live in comfort in Toronto is over $100,000. The median income before tax in this city is between $113,797 and $54,957.
The Average Cost of a House in Mexico
Moving south, living in Mexico can come with disadvantages as the general quality of life is not as high as elsewhere in North America. All things considered though, the country still has a lot to offer, and the price tag is relatively low. With about $1,890 per month and $22,680 per year, you can live a life of few restraints in Mexico.
Expect to pay an average real-estate price of 114,100 pesos ($55,060) in Mexico. On the higher end of this average is Mexico City, with a median home price of 2,911,000 pesos ($140,473).
(International Living, Statista)
The Average Cost of a House in London
Based on the Office for National Statistics data, the average price of a home in London was up by 9.7% in 2020 from the previous year, reaching a record of £514,000 ($715,488). Real estate is always in demand in the UK capital as the minimum percentage of growth for the area’s housing market was 4.8% yearly. If you plan to live a comfortable life in London, then also plan to earn at least £40,000 ($55,680) to maintain a comfortable lifestyle.
The Average House Cost in New Zealand
In 2002, the New Zealand house market experienced a 6.8% growth. The Real Estate Institute of New Zealand (REINZ) estimates that the median price of a home is NZ$597,000 ($428,469). The most expensive place to settle in this country is Auckland, with a median real-estate cost of $850,000. At the other end of the spectrum stands Whanganui on the North Island, where the price of homes averages only approximately $330,000.
You can often find New Zealand in the top spots of rankings of places to live in. However, this comes at a high cost as not only are houses pretty expensive but pretty much everything else is too, due to the country’s relative geographical isolation.
The Average Cost of a House in the Dominican Republic
Located in the heart of the Caribbean, with superb year-round weather and picturesque scenery, it’s hard to pass up on the Dominican Republic, so what are the home prices here?
The house with the highest price in the Dominican Republic is listed at C$25 million.
However, homes are usually much cheaper. For example, in Santo Domingo, the country’s capital, the average cost of a two or three-bedroom property in the city center is approximately $150,000.
You can lead an above-average lifestyle in the Dominican Republic for just about $1,355 per month.
(GlobalPropertyGuide, Live and Invest Overseas)
The Average House Prices by Year
With the global population growing steadily year by year and the land staying the same, it’s only natural for the real estate prices to climb continuously.
The Average Cost of a House in 1950
After WWII, most of the globe was left in shambles. Left largely unscathed, the US enjoyed great prosperity. It was the post-war days that brought the image of everyone owning a house with a picket fence, a car, and a dog named Spot, or at least so the saying goes.
It’s incredible to think that in 1950, the median home value in the United States was as low as $7,400 while the average rent cost $42. Even adjusted for inflation, the prices were still almost infuriatingly low, especially considering that the median household income (with a single breadwinner usually, by the way) was $2,990.
The Average Cost of a House in 1970
By the 1970s, the home price trends went on a consistent upward pattern, the median price of a home reaching $17,000, marking a significant increase from $11,900 in 1960. However, the median household income also grew to $8,734 (1970) and $4,970, respectively.
Since 1950 and through the second half of the 20th century, homeownership among Americans grew from 40% to 60%. This was the era in which the suburban dream was born, and everyone was rushing to be a part of it.
The Average Cost of a House in 1980
By the 1980s, home prices had increased at such a high rate that they more than doubled in the past 10 years, getting to a median cost of $47,200. The household income couldn’t catch up, especially considering how, by this time, women had entered the workforce as well. During that time, the average household generated $17,710 per year.
Even so, real estate was still relatively affordable for the average individual, without too much of a hassle. This was when most Baby Boomers bought properties in the seventies and eighties and, since the demand was still there, the housing price trend kept pointing upwards.
The Average Cost of a House in 1990
Continuing the previously established housing prices trend of growth of the average home price by year, the cost of a property in 1990 doubled again from 1980, reaching a median cost of $79,100. At the same time, household median incomes have been staggering behind at only $29,943, with a sub-par growth rate. In the 1990s, the average cost of rent was $447.
The Average Cost of a House in 2016
Millennials. The daunted generation, living in their online world and consuming diets free of the latest proclaimed harmful substances. A lot of bad has been said about them, but to put things in perspective, they have had to deal with a pretty rough economic legacy. In America, millennials are, so far, the first generation to inherit a worse economy than their parents.
The average cost of a 3 bedroom house in 2016 soared to $412,222.94, while the most common price for a home was $360,900. Among rising prices for education and higher living costs, they also had to deal with a faulty housing market and the fallout after the 2008 meltdown due to financial pressures created by easy borrowing amidst exponential growth in housing price trends.
The Average Cost of a House in 2018
After the huge correction which occurred between 2008 and 2012, the average home value increase resumed and even surpassed pre-2008 values. Starting from around 2016, the real estate market began to stabilize slightly and even faced a slight decrease. In 2018, homes were selling for an average of $385,000.
The Average Cost of a House in 2019
In 2019, the trend of slight decline established in the previous year continued as the median selling price of a house through the US was $383,900. Amidst the longest ever rally of the United States’ economy, it is likely that a lot of people weren’t buying homes due to fear of a correction. Also, it is possible that the growth level of the prices was getting too high to sustain.
Surprisingly (or not), in 2020, the growth resumed, exceeding all the previous values and reaching an average selling price for a home of $389,400.
The Average Cost of a House in the US – Renting vs. Buying
Ah, the age-long dispute of rent versus buy. Sure, both come with advantages and disadvantages. While renting brings low initial costs, high mobility, and fewer headaches, buying a house will offer more stability, security and even with a mortgage, you still build equity in a property.
A lot more can be said on this subject. Still, a simple analysis of the rough monthly costs of each shows that the average cost of owning a house per month is approximately $834 per $100,000 of property total price, without taking into consideration any mortgage. On the other hand, the average cost of renting a house per month is $1,468.
The Average Cost of Owning a House
Buying a home implies quite the price tag, and it may even be considered a significant life achievement. However, the story doesn’t end there. The bigger the house you get, the bigger the maintenance costs.
The Average Cost of Residing in a House
Living in your own house is not a cheap thing at all. Besides repairs and maybe even improvements which are not mandatory, homeowners must also budget for unexpected expenses like plumbing, rewiring, carpeting, painting, or other such events. Considering that although the average cost of a tiny house upkeep should be small, a mansion will have a massive price difference.
The Average Cost of Utilities for a House
This depends on how much water is used, although the average US family pays up to $400 monthly.
The Average Cost of Carpeting a House
With professional installation priced between $1 and $2 per square foot, the rough average homeowners spend to carpet their property is between $960 and $1,920, for a 320 square feet space.
The Average Cost of Remodeling a House
Add another 40,000-75,000 to your average house cost calculations if you plan on remodeling a mid-range priced property. For high-end ones, the budgeting should be between $75,000 and $200,000.
The Average Cost of Renovating a House
To fully renovate an average home, the costs stand between $40,000 and $75,000.
The Average Cost of Plumbing a New House
For a new home, the approximate cost of plumbing is between $8,000 and $12,000, considering a price of $4.50 per square foot. The average cost of replumbing is $8,250.
The Average Cost of Repiping a House
Usually, such a project will come with a price tag between $4,000 and $15,000 if we’re talking about a complete replacement of the piping system.
The Average Cost of Rewiring a House
For a 2,000 square foot property, expect to add between $12,000 and $20,000 to the average home price if you plan on adding new wiring.
The Average Cost of Siding a House
Considering a price of approximately $3 to $11 per square foot, the average homeowner spends $4,300 to $15,000 to side a 2,000 square foot home.
The Average Cost of Siding a Two-Story House
Homeowners must pay between $7,000 to $12,000 to side this kind of property.
The Average Cost of Painting a House
For a property of 2,000 square feet, the average cost of painting a house exterior is about $1,000-$7,000. Now, for a home with the same amount of indoor space and a contractor’s standard estimate rate of $1 to $3 per square foot, the average cost of painting a house interior is $2115.
The Average Cost of Roofing a House
An averaged sized house requires an expenditure of anywhere between $7,500 and $10,000 for roofing.
The Average Cost of Re-Roofing a House
Budget another $6,000 to the average cost of a house if you plan on re-roofing it.
The Average Cost of Power Washing a House
Pressure washing a 2,000 square foot home takes about two hours and costs between $100 and $500.
The Average Cost of Solar Panels for a House
For a typical house, you must spend between $9,520 and $11,900.
The Average Cost of Tenting a House for Termites
Depending on the infestation, you must pay somewhere from $1,280 up to $3,000.
The Average Cost of New Windows for a House
Consider this: you must add another $175 to $700 per window to the average cost of a house if you plan on changing those. If you want to use high-end items, the average cost of replacing windows in a house jumps to $800 or even $1,200.
The Average Cost of Building a House
To make an estimate that is still as accurate as possible, many factors have to be considered. Are you building it yourself? What is its size? What materials are you using? Here are the answers.
The Average Cost of Building a House Yourself
Depending on the region and square feet, budget between $150,000 and $450,000 if you are the DIY type.
The Average Cost of Adding Onto a House
The typical range for building an addition to your home is $20,868 to $72,244.
The Average Cost of Adding a Bathroom to a House
To extend your property with another bathroom, consider a budget of $5,000 to $35,000, although most homeowners pay only $15,000.
The Average Cost of Building a House Per Square Foot
The average house cost for building a single-family home is about $153 per square foot.
The Average Cost of Material to Build a House
Home-builders must spend between 41.5% and 51% of the total cost on materials and about $50 per square foot.
The Average Cost of Demolishing a House
Sometimes things are just too broken to be fixed. Expect to pay between $8,000 and $30,000 on the demolition of a typical 2,000 square foot home.
The Average Cost of a Poll Barn House
If you are on a budget, building a poll barn house will save you tens of thousands as it costs only around $25,000.
Although you might be getting paid for it, there still are some prices involved in making a real estate transaction. As such, the average cost of selling a house consists of nearly 15% of its value. This includes agent commission, moving fees, home improvements, and closing costs.
On the other hand, the average cost of buying a house can be between $300 and $500 for the appraisal fee.
Another thing to consider is the average cost of flipping a house. It’s estimated that you must pay around 10% of the home’s price on repairs and marketing. Keep in mind that some places in the States are better for flipping houses than others.
(DaveRamsey, Redfin, FitsSmallBusiness)
The Bottom Line
Buying property is one of the most significant decisions in life. Considering the average cost of a house is a great place to start your journey to getting to that one place you call home and live your dream life in.
References: Zillow, HastagColoradoLife, DaveRamsey, Yahoo, DaveRamsey, CultureMap Dallas, Zillow, Schmidt International Relocations, SmartAsset, LivingWageMIT, Bridge Michigan, LAO.ca.gov, Zillow, BusinessInsider, Zillow, Quora, Zillow, Seattle Refine, Norada Real Estate Investments, Salary, Zillow, SmartAsset, Living-Canada, Workopolis, CTVNews, Narcity, International Living, Statista, TheGuardian, Tripsget, Property Guides, GlobalPropertyGuide, Live and Invest Overseas, Curbed, Realtor, Statista, CanIRetireYet, Statista, Move, TheBalance, FoodNetwork, HomeGuide, HomeGuide, Articles321, Clovered, Fixr, HomeGuide, HomeAdvisor, DallasPaints, HomeAdvisor, 5Estimates, Fixr, HomeGuide, HomeGuide, AngieList, HomeLight, HomeAdvisor, HomeAdvisor, DaveRamsey, HomeGuide, Hometown Demolition, HomeAdvisor, DaveRamsey, Redfin, FitsSmallBusiness