Real Estate Market in Historical Perspective

US Home Prices, Building Costs, Population and Interest Rates, 1890-2004
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Heavy solid line (left scale): real (inflation adjusted) home price index in US, 1890 = 100

Thin line (left scale): real building cost index, 1979 = 100

Thin line (right scale): US population in millions

Lowest thin line (left scale): long term interest rates

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Source: Schiller, Irrational Exhuberance.
Please read this great book to understand more about the calculation methods.

In this book, Shiller draws out the psychological origins of volatility in financial markets.

Robert J. Shiller is Professor of Economics at Yale University.