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U.S. Housing Prices in Gold.

In Investment Returns on April 3, 2011 by CQCA

The above chart shows the average price of housing in the U.S. if gold was used to purchase a house.

In 1975, the average price of a house was $42,600. An ounce of gold was $161.02. Therefore, it would take 264.56 ounces of gold to buy one house.

1980 was the most recent low-point in housing, when it reached 124.72 ounces per house. The housing market then went into a bull market and increased 531.91% over the next 21 years. A house in 2001 cost 786.60 ounces of gold.

Even though the Dollar cost of owning a home skyrocketed during the naughts, the real value of a home dropped 71.71% between 2001 and 2010.

This would indicate that the housing crisis was an inflationary boom, if anyone had not figured that out yet.

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