Current Perspectives on Home Ownership

Between 1970 and 1979, the median sales price of an existing single-family home rose roughly 170 percent, while the general price level increased 113 percent. The number of housing units also increased substantially: 17.8 million housing units were produced during the 1970s, or 24 percent more than in the previous decade.1 As the 1970s advanced, the role of housing shifted from primarily a consumption item to an investment item, a role that was further enhanced by declines in real after-tax returns on such financial assets as stocks, bonds, and savings accounts