The Golden Era of Affordable Housing

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Welcome to this week’s installment of The Midmod Corner.

Did you know that 94% of Americans consider home ownership a key part of the American Dream? These days, with sky-high prices and rising interest rates, that dream feels more out of reach. So, how good did post-war Americans have it?

Let’s take a quick look at 1950s home prices and see what made that era so different.

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The Golden Era of Affordable Housing

In 1950, the median home price in the U.S. was $7,354. Compare that to 2024, where the median price has skyrocketed to $420,000 (Source: U.S. Census Bureau). Even when adjusting for inflation, that 1950s home would cost about $89,300 today. Not bad, right?

Back then, homes cost less than three years of household income; today, in places like California, it’s closer to nine years.

So, what made homes so affordable in the ‘50s? Well, a lot of things. The post-World War II economic boom, government policies that pushed for homeownership, and the rise of mass-produced housing developments all played a part. Plus, there was plenty of land available for development. The GI Bill gave veterans access to low-interest mortgages with small monthly payments, and the Federal Housing Administration (FHA) made it easier for folks with lower credit scores to buy homes.

Then there were builders like Joseph Eichler, who brought affordable modern homes to the masses. His homes sold between $9,000 and $12,000, with down payments as low as $300 and monthly payments between $60 and $80. In today’s dollars, that’s about $120,000. Now? Those same Eichler homes can go for around $2 million, or even more in places like Palo Alto.

Of course, the 1950s housing market had its flaws. Not everyone had access to those affordable homes, and some mass-produced houses didn’t age well. Homes were also much smaller—about 983 square feet, compared to today’s average of 2,500. Plus, amenities like air conditioning and indoor garages were rarer than they are today.

Still, 1950s housing affordability shaped the rise of the middle class and helped families build wealth through homeownership. While today’s market is a different beast, the lessons from that era might help us rethink how to make homeownership more accessible again.

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