U.S. Home Price Average Could Reach $1 Million by 2050
By the time millennials hit retirement age, the median home price in the U.S. will conservatively hit 1 million dollars. Your two-year-old that will be looking at their first home in 25 years will be shopping for 1-million-dollar homes. $200,000 will be needed for a downpayment and $5,700/month on a 20-year mortgage payment. (not including taxes, insurance or utilities). As most parents have realized, 25 years go by in a blink of an eye. This projection was made by the National Association of realtors, not your 58-year-old uncle still living with his mom.
In 1990 the median home price was $90,000. As of this writing (June 2026) the median home price is $434,000. This is where things get interesting. While normal inflation and appreciation contribute to the 1-million-dollar price tag, what is not talked about, is the "affordability squeeze".
Home prices have grown 5x since 1990. Incomes have roughly increased 2.5x-3x over this same period. Significantly less people can afford to purchase a home today than in 1990. If this outlined trend continues at its current rate over the next 25 years, a small percent of people will be able to afford a home. In an essay written by Dannish politician Ida Auken titled Welcome to 2030 (and published by the World Economic Forum) he stated, "You'll own nothing and you'll be happy".
Unless you're ok being a renter and leasing your entire life, this should scare you.
The Betternance Method: 4 Steps to Build Wealth:
1) Have a strict monthly budget that allows you to save more than you earn. (Shoot for a savings rate of 15-50% of your take home income.) Make the necessary cuts where needed and/or earn more money. If the math doesn't work, nothing else will.
2) Track your net worth 2x/year (assets minus liabilities = net worth)
3) Acquire useful skills that help you generate money. Useful skills make you attractive when being hired or when offering your services to the public. A large percent of college majors are going to disappear in the near future as AI continues to advance. Master skills that the future is going to need. We highly recommend considering starting your own business and hiring a great accountant. (88% of millionaires are business owners)
4) Invest your monthly savings and extra funds into your asset army. Assets that generate cash flow and grow in value over time. Once your cash flow is greater than your burn rate, you are free.
There are trillions of dollars floating in the economic pool. Your efforts and financial commitment will decide what percent gets allocated to you.
Onwards!