RAPID CITY, S.D. (KOTA) – Buying a home has become significantly more expensive over the past four decades, with home prices rising more than twice as fast as inflation, according to a new study.
Clever Real Estate found the median U.S. home now sells for about $423,100. If prices had only kept pace with inflation since 1984, that home would cost about $242,300 — roughly $180,800 less.
Overall, home prices have increased 441% since 1984, compared with a 210% increase in inflation, according to the study.
The report does not include South Dakota-specific data, but housing affordability has remained a concern in communities across the state, including Rapid City and Sioux Falls. Higher home prices and mortgage rates have made it more expensive for many first-time buyers to enter the market.
Researchers found home prices have outpaced inflation in all 50 of the nation’s largest metropolitan areas since 2011.
There are signs that price growth may be slowing in some markets. Over the past year, home-price growth trailed inflation in 27 of the 50 largest U.S. metro areas, according to the study.
The report said factors including labor, land, building materials and financing costs can push housing prices higher, while higher mortgage rates can reduce demand.
The study was conducted by Clever Real Estate using federal housing data and Consumer Price Index figures.
See a spelling or grammatical error in our story? Please click here to report it.
Do you have a photo or video of a breaking news story? Send it to us here with a brief description.
Copyright 2026 KOTA. All rights reserved.