How much do home values rise or fall during the life of a 30-year mortgage?
History shows that home values typically rise over a 30-year period, but there are always periods of fluctuation.
In the 30 years from 1968 to 1998, the median home price rose from $20,100 to $128,400, according to the National Association of Realtors.
The median price in 1978 was $48,700, and by 1988, it was $89,300, which means very significant gains were made within 10 and 20 years.
Over the last 30 years, from 1995 to 2025, home prices in the United States have seen significant growth, though the journey has been marked by periods of rapid increases, and sharp declines.
In 1995, the median home price in the U.S. was around $130,000, according to historical data from the Federal Reserve Bank of St. Louis. Fast forward to 2025, and the median sales price of houses sold in the U.S. is approximately $420,400 as of late 2024, per the Federal Reserve's data.
When adjusted for inflation, the growth in real home prices (in 2024 dollars) have increased by about 70-80 percent over this period, depending on the inflation metric used.
But there are always market forces and events that cause slower growth.
In 2007 the subprime mortgage crisis led to a wave of defaults. In this case, home prices declined, but starting in 2012 prices began to recover.
During the life of a 30-year mortgage home prices, interest rates, and the supply and demand for housing will likely fluctuate. But, if you have a mortgage on a house that you can afford, your payment will stay the same, even if the value of your house goes through periods of increases and declines.
And, remember you will be building equity (or ownership) in your house during a 30-year period.