Home prices in 1985: US median, states and today's value
Census and HUD reported a US median new-house sale price of $84,275 in 1985. That amount was about $263,981 in September 2026 dollars. From that point onward, the FHFA house price index has grown about 5.6 times. Zillow valued the typical US home at $366,157 in September 2026.
- New house median sale price, 1985
- $84,275Data from Census and HUD.
- September 2026 dollars
- $263,981. Adjusted using CPI-U.
House prices in 1985: median and average
The median new-house sale price was $84,275 in 1985, while the average reached $100,825, which was 20% above the median. A few costly houses raise the average. The FHFA index shows 1985 was a strong year, up +5.1% on the year.
| Year | Median new house | Average new house | FHFA index, change on the year |
|---|---|---|---|
| 1980 | $64,750 | $76,375 | +7.9% |
| 1981 | $68,950 | $83,175 | +4.4% |
| 1982 | $69,225 | $83,850 | +1.0% |
| 1983 | $75,375 | $89,775 | +7.2% |
| 1984 | $79,950 | $97,550 | +4.5% |
| 1985 | $84,275 | $100,825 | +5.1% |
| 1986 | $92,025 | $112,075 | +6.8% |
| 1987 | $104,700 | $127,575 | +6.5% |
| 1988 | $112,225 | $138,650 | +5.4% |
| 1989 | $120,425 | $148,125 | +5.3% |
| 1990 | $122,300 | $149,075 | +3.1% |
Yearly new houses sold, U.S. Census Bureau and HUD (FRED MSPUS, ASPUS). FHFA all-transactions index, annual average. Two measures are covered in more detail: median home price and average home price across America.
Home prices in 1985 by state
The FHFA index rose most in District of Columbia since 1985, at +834%, and least in Louisiana, at +239%. During 1985 the FHFA index fell in nine states, with the deepest drop in Alaska at −4.2%.
| State | Typical value, September 2026 | FHFA change in 1985 | FHFA change since 1985 |
|---|---|---|---|
| Alabama | $238,614 | +2.5% | +339% |
| Alaska | $397,932 | −4.2% | +243% |
| Arizona | $416,733 | +4.6% | +480% |
| Arkansas | $224,158 | +2.1% | +297% |
| California | $761,538 | +5.5% | +664% |
| Colorado | $529,013 | +0.4% | +580% |
| Connecticut | $447,319 | +15.5% | +366% |
| Delaware | $405,061 | +9.0% | +450% |
| District of Columbia | $567,271 | +5.8% | +834% |
| Florida | $375,361 | +1.3% | +543% |
| Georgia | $329,115 | +5.7% | +397% |
| Hawaii | $832,932 | +4.9% | +751% |
| Idaho | $476,754 | +1.6% | +641% |
| Illinois | $295,943 | +4.8% | +390% |
| Indiana | $257,165 | +4.2% | +382% |
| Iowa | $236,623 | +2.2% | +355% |
| Kansas | $246,055 | +1.7% | +344% |
| Kentucky | $230,909 | +2.8% | +414% |
| Louisiana | $213,867 | −3.3% | +239% |
| Maine | $412,002 | +11.5% | +589% |
| Maryland | $424,890 | +5.5% | +460% |
| Massachusetts | $655,219 | +24.9% | +529% |
| Michigan | $263,760 | +4.5% | +475% |
| Minnesota | $348,778 | +2.6% | +423% |
| Mississippi | $194,531 | +5.8% | +254% |
| Missouri | $265,387 | +6.1% | +363% |
| Montana | $467,275 | −2.9% | +646% |
| Nebraska | $278,299 | +1.0% | +388% |
| Nevada | $440,739 | +0.9% | +445% |
| New Hampshire | $510,937 | +19.8% | +493% |
| New Jersey | $575,123 | +15.2% | +538% |
| New Mexico | $315,812 | +2.2% | +341% |
| New York | $524,942 | +17.3% | +534% |
| North Carolina | $332,159 | +8.0% | +438% |
| North Dakota | $290,657 | −3.0% | +387% |
| Ohio | $245,982 | +2.7% | +375% |
| Oklahoma | $220,801 | −3.5% | +242% |
| Oregon | $492,753 | −0.4% | +776% |
| Pennsylvania | $287,078 | +6.8% | +484% |
| Rhode Island | $508,507 | +13.3% | +659% |
| South Carolina | $304,319 | +4.3% | +451% |
| South Dakota | $317,874 | −0.6% | +481% |
| Tennessee | $330,844 | +8.4% | +476% |
| Texas | $296,424 | +0.1% | +318% |
| Utah | $532,920 | +2.5% | +645% |
| Vermont | $391,900 | +8.1% | +570% |
| Virginia | $412,252 | +5.4% | +501% |
| Washington | $587,533 | +2.7% | +829% |
| West Virginia | $176,576 | −0.7% | +298% |
| Wisconsin | $337,196 | +2.5% | +489% |
| Wyoming | $369,044 | −2.3% | +449% |
This FHFA change uses the all-transactions house price index, comparing the 1985 yearly average with Q2 2026. See the FHFA HPI datasets.
A 1985 home’s current value
A home costing $84,275 in 1985 matched the median new-house price. With growth measured by the FHFA index, its current value would be about $475,708. Using only consumer prices gives $263,981. Once inflation is accounted for, the median new house today costs 49% more than it did in 1985.
| A $84,275 home from 1985 | Worth now | As of |
|---|---|---|
| Growth measured by the US FHFA house price index | $475,708 | Q2 2026 |
| Grown with consumer prices only (CPI-U) | $263,981 | September 2026 |
Each series measured against itself, 1985 and now:
| Series | 1985 | Now | As of | Change |
|---|---|---|---|---|
| Median new house sold, Census and HUD | $84,275 | $393,300 | Q3 2026 | +367% |
| Average new house sold, Census and HUD | $100,825 | $494,400 | Q3 2026 | +390% |
| FHFA house price index (an index, not dollars) | 127.5 | 719.9 | Q2 2026 | +464% |
| Consumer prices (CPI-U) | 107.6 | 336.9 | September 2026 | +213% |
The home appreciation calculator works with a chosen city and purchase price.
Putting 1985 in context
The chart shows the median new house with a steel line and the average with a grey line; a dashed line marks 1985.
For the previous year, see home prices in 1984. Later: 1989 home prices. See home prices by year for every year on one page. The housing market crash history covers every fall since 1975. City-by-city current values for a home purchased in 1985 are available in the home appreciation calculator.