return over this time. Figure 17.7 shows U.S. Census data for the average sales price of a new home in the

United States from 1965 to 2021.

LINK IT UP

Go to this website (http://openstax.org/l/investopedia) to experiment with a compound annual growth rate

calculator.

However, the possible capital gains from rising housing prices are riskier than these national price averages.

Certain regions of the country or metropolitan areas have seen drops in housing prices over time. The median

housing price for the United States as a whole fell almost 7% in 2008 and again in 2009, dropping the median

price from $247,900 to $216,700. As of 2016, home values had recovered and even exceeded their pre-

recession levels, and they have continued to increase into the early 2020s.

LINK IT UP

Visit this website (http://openstax.org/l/insidejob) to watch the trailer for Inside Job, a movie that explores the

modern financial crisis.
422 17 • Financial Markets
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