a stack of coins

Media / Blog

The Average Home in the US is Down 25% Since 1975??


Growing Your Business in 2024: 7 Tips to Help You Achieve Success

January 28, 2024

In 1975, the real estate landscape was vastly different than in present times. A house, priced at $36,500, was considered a substantial investment, and an ounce of gold was a mere $145. Fast forward to 2024, and we witness a staggering transformation. Home prices have surged to an average of $382,000, raising questions about the correlation between real estate and gold values.

The Golden Investment Perspective

Back in '75, you could have acquired that house with about 251 ounces of gold (because $36,500 ÷ $145 per ounce ≈ 251 ounces). Move ahead to 2024, the average US home is valued at $382,000, and gold is at $2,000 an ounce. So, your dream home now requires 189 ounces of gold. Hold on - that means you're actually buying the house for 25% less gold than you would have in the past!

Dollars vs. Gold: Navigating Two Financial Realms

In terms of dollars, the house price has witnessed a substantial 1000% increase! But shift the focus to gold, and you're down about 25%. It's like navigating two different terrains - one where your dollars are celebrating, and the other where your gold is saying, "Calm down, it's not as extravagant as it appears."

Unveiling the Magic Trick: Dollar Wealth vs. Gold Reality

Now, let's unveil the magic trick! The dollar figures might scream "wealth," but behind the scenes, when seen in gold, it's a different story. It's like realizing your money hasn't grown as much as it seems - a reality check on the true value of your investment. So, while the dollar may dazzle, the gold perspective paints a more grounded picture.

Navigating Economic Twists and Turns

Considering the surge in the money supply, influenced by economic factors, has propelled home prices to new heights. Yet, recalibrating these figures in gold ounces helps distinguish between apparent wealth and the preservation of genuine purchasing power. As we navigate economic twists and turns, understanding this difference becomes crucial for making informed financial decisions.

This perspective encourages us to reevaluate traditional measures of financial success. Instead of fixating solely on numerical values, let's consider the dynamic interplay between inflation, currency shifts, and the tangible value embodied by assets like gold. By doing so, we empower ourselves to make more nuanced evaluations of our financial well-being.

Summarizing the Complex Tale of Inflation and Wealth Growth

In summary, the impact of inflation on the average home price over the past 49 years is a complex tale. The surge in nominal values may catch attention, but when measured in the enduring substance of gold, the narrative shifts. This exploration prompts us to question the nature of our financial gains, urging us to discern whether we've truly grown wealthier or simply danced to the tune of inflation. As we grapple with these economic intricacies, the importance of financial literacy and a nuanced understanding of wealth becomes increasingly evident.

If you would like to receive more information on making smart money moves for your future, be sure to contact us today!


Funding Your Home Renovation

About the author

image of a guy wearing a suit

Matt Goldstein

Managing Director, Private CFO®

Matt grew up just outside Washington DC in Silver Spring MD. He attended Florida State University and completed The Wharton School of Business executive leadership program. Outside of work Matt is a family man and loves spending time with his wife Michele and his two daughters, Mackenzie a freshman at Emory University, and Lexi a Freshman in high school and his two dogs. Matt is also an avid ultra-endurance athlete and loves training for his next big race. He has completed 17 marathons and qualified and finished the Boston Marathon twice, 3 Ironman triathlons, and multiple Ultra trail marathons including a 100K. In August he will be attempting the Leadville 100 which is one of the toughest ultras in the world.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.