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.<\/p>\n
Clever Real Estate<\/a> 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 \u2014 roughly $180,800 less.<\/p>\n Overall, home prices have increased 441% since 1984, compared with a 210% increase in inflation, according to the study.<\/p>\n 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.<\/p>\n Researchers found home prices have outpaced inflation in all 50 of the nation\u2019s largest metropolitan areas since 2011.<\/p>\n 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.<\/p>\n The report said factors including labor, land, building materials and financing costs can push housing prices higher, while higher mortgage rates can reduce demand.<\/p>\n The study was conducted by Clever Real Estate using federal housing data and Consumer Price Index figures.<\/p>\n See a spelling or grammatical error in our story? Please click here<\/a> to report it.<\/p>\n