08/13/2021
So far this week, we’ve covered the English, math, and science behind real estate. Today it’s time to turn back the pages of history and take a peek at what it used to look like to buy a home in the U.S.
We think you’ll find this info from J.D. Roth of the blog, Get Rich Slowly, fascinating—just like we did!
For a long time, homeownership was the exception rather than the rule. Sure, farmers owned a bit of land and a small home, but most Americans did not.
During the 1800s, many didn't have the piles of cash needed, and banks weren’t any help. They wouldn't lend money for ordinary people to buy.
Mortgages didn't become commonplace until the U.S. banking system stabilized following the National Bank Acts of the 1860s. But a mortgage in the early 1900s looked way different than a mortgage today. It might have had a 5-year term and required a 50% down payment!
These early mortgages worked fine until the Great Depression, when nearly 10% of homes fell into foreclosure.
The G.I. Bill of 1944 ushered in an era of escalated demand for housing and the development of the suburbs.
As the housing market boomed during the 1940s and 1950s, so did the real-estate profession.
Increased home prices and ownership rates brought increased mortgages. Just consider: The median size for a new home built in 1973 was 1525 square feet. By 2016, that number had jumped to 2422 square feet.
Homeownership in the U.S. has had a wild and bumpy history. The good news for prospective buyers today is that owning a home is within reach of many more Americans than it used to be.
If you’re thinking of buying and curious about what the process looks like in today’s market, we’d love to discuss. Send us a DM, and we’ll be in touch soon!
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