By 2020, when the economy will be ready to support a third generation of Tahoe residents, the most expensive homes will cost more than a year’s worth of food.
A new report by real estate analytics firm Zillow estimates the average price for a single-family home in 2020 will be $2.5 million, up from $2,832 in 2021.
The report breaks down the price for the average single-story home in each of the 10 states with the highest median household incomes.
The report estimates that for every dollar a buyer spends on a house, the average cost of a home will be 10.5 percent higher in 2020 than in 2021, according to Zillows.
In 2020, average prices will be higher in 10 states.
California, for instance, will have the highest average price at $1,842, up 14.5% from 2021.
That price, however, will still be well below the median home price of $3,836 in 2021 and well below $5,000 in 2020.
Zillow’s report comes on the heels of another report from Zillower showing that in 2020, median prices for new homes in 10 of the nation’s 20 largest metro areas will be significantly higher than in 2020 dollars.
It’s also important to note that the median price of a house does not reflect how much it costs to buy it, according Zillowlow.
A single-car garage in the suburbs costs $400,000, while a $10,000 home will cost $1.8 million in 2020 and $3.4 million in 2021 in New York.
This is why ZillOW has included the following cautionary notes in its report.
“This is not a definitive guide to a buyer’s price, but rather a guide to how much a buyer should expect to spend, in 2020 to 2024, on a new home,” Zillowitz wrote.
While we do not make every single estimate, we are not surprised by the price increases in 2020 due to the economy, Zillowing said.
For example, ZILLOW noted that the average household income in the U.S. will increase from $51,869 in 2021 to $53,938 in 2024, an increase of 7.7 percent.
Meanwhile, Zellow also noted that home prices in some states, such as Texas and California, are expected to increase even more due to rising income inequality.
As a result, Zills affordability metrics have been boosted by the rising cost of housing, as it’s become more affordable to purchase a home in certain regions, according the company.
Even though it will become increasingly more expensive for people to buy homes, the real estate market will still continue to move in the right direction, according Kynan.
When it comes to affordability, Kynans main takeaway from Zellows report is that if you want to buy in 2020 in your home state, you should expect a $2 million house. Read more: