The Housing Market in the US is a very interesting field to examine as examining the locations and types of homes being purchased tell a much larger story about the people of the United States. Throughout this presentation, we will examine 6 visualizations of the housing market in the last 59 years. All visualizations are made using Data from the National Census Buero.
Houses Sold by Region
As we can see from this graph of Houses sold by Region, Houses sold and put on sale peaked in 2008 due to the infamous market crash in every region, 2020 is on track to beat that peak. The south will continue to dominate the housing market as it has every year and the eastern region is at the lowest, this shows more people are tending to move south and south-west.
The same goes for Houses put on Sale as Houses Sold except there are a significantly smaller number of houses being put on the market than houses being bought. This shows there is an opportunity to build more houses in all regions since generally there are less than 200 thousand homes on sale each year yet 500 thousand homes are being bought each year. That means to balance the market the number of houses that need to be put on sale needs to increase by about 150%.
Median and Average Sale Price of Houses Sold
This graph shows that every year the median and average price of houses increases with a strong linear correlation as it has gone from barely 10k to 400k in just over 50 years. The only drop is in 2008 due to the housing market crash. One would argue this is due to inflation but the inflation rate from 1963 is only 808.3%. So something worth 10k would be only 90k which is a long way off from 400k. This is simply supplied and demand caused by low-interest rates. When the interest rate decreases, the incentive to purchase increases.
Houses Sold by Sales Price
This graph shows multiple prices ranges of houses that were sold. Some conclusions that can make are that between 2013 and 2020 prices have increased. After 2013 the houses that were being bought the most were between 300k-400k. This shows that the upper-middle-class community in the US is increasing. The stock market price in 2020 caused the number of middle-class houses sold to increase dramatically after the effects of Covid-19.
Average Prices of Houses Sold by Region
The next graph shows the average prices of houses sold by region. All house prices have increased significantly. The Northeast and West are typically ahead of the other regions. This shows that the biggest cities like Chicago, NYC, Philadelphia, Washington. DC, Boston among other North-eastern cities will generate a large population. The same applies to Seattle, Las Vegas, and all the other California cities. Many flocked to these cities especially after 2008. The prices increased due to Supply and Demand since these cities control the tech industry and there are a lot of well-educated people coming out of the colleges in or near these cities including Harvard, Yale, Princeton, Columbia, MIT, Penn, Brown, NYU, Georgetown, and Johns Hopkins amongst other top universities.
Average Number of Houses Sold by Types of Financing
This graph shows that many houses are bought with cash. The second way of financing that was the second-highest was conventional. Conventional and paying full in cash are the most used types of financing.
Summary
To summarize the following points can be made
- Houses Sold is increasing
- Houses on Sale is increasing
- House Prices are increasing
- Houses between 300k to 400k are sold most
- West houses are the most expensive
- Convenience and Cash are the most popular ways to buy a house.
