Connect with us

United States

Chart: U.S. Home Price Growth Over 50 Years

Published

on

Subscribe to the Advisor Channel free mailing list for more like this

Chart: U.S. Home Price Growth Over 50 Years

Chart: U.S. Home Price Growth Over 50 Years

This was originally posted on Advisor Channel. Sign up to the free mailing list to get beautiful visualizations on financial markets that help advisors and their clients.

U.S. home prices grew significantly in 2022, even as interest rates climbed higher.

Yet in inflation-adjusted terms, this growth rate was far lower. By Q4 2022, it fell to being flat year-on-year, making it the slowest real growth seen in a decade.

The above graphic compares nominal and real residential property price growth over 50 years based on the latest data from the Bank for International Settlements (BIS).

Nominal vs. Real Home Price Growth

In 2022, opposing forces of rising mortgage rates and a narrow supply of housing produced a moderate nominal growth rate of just over 7% as of Q4 2022. That said, real price growth dropped to 0% over the period.

Here’s how that looks in context of the recent highs and lows of housing price growth:

Nominal Home Price Growth
Year-over-Year
Real Home Price Growth
Year-over-Year
Q4 20227.1%
0.0%
Peak19.5% (Q1 2022)12.9% (Q2 2005)
Low-16.9% (Q4 2008)-19.5% (Q3 2008)

Recent Highs: During the pandemic, growth hit almost a 20% year-over-year rate by Q1 2022, which was record home price growth at the time. It was driven by ultra-low interest rates and remote work leading people to seek out more space.

Recent Lows: In both real and nominal terms, home price growth sank to their lowest levels in 2008. The property market crashed after a wave of easing lending requirements. This flooded the market with an oversupply of houses as subprime homeowners couldn’t afford to make payments, leading prices to plummet.

Factors Influencing Home Price Growth

Today, a mix of factors are supporting nominal house prices.

First, the housing supply remains low. Total existing inventory stood at 1 million in April, under half the four-decade average. As interest rates have increased, homeowners have been hesitant to sell and the number of mortgage applications has fallen. In turn, this is pushing prices higher.

In fact, the majority of primary mortgages have interest rates locked in under 4%. As of May 4, the average 30-year fixed mortgage rate stood much higher, at 6.4%.

Mortgage rates vs. number of active mortgages graph

Along with this, new home sales are falling.

After hitting a 15-year peak in 2021, sales sank almost 27% year-over-year in April. New home sales are often considered a leading indicator for the residential market.

Wider Implications

The U.S. residential market is valued at about $45 trillion, and has historically been highly sensitive to interest rates.

While the rapid increase in interest rates haven’t yet had a major impact on housing prices, some cracks are beginning to show.

On the other hand, if prices remain stubborn, it may contribute to inflationary pressures, leading the Federal Reserve to continue with rate increases, given the market’s sheer size and influence on the overall U.S. economy.

Click for Comments

Agriculture

Top U.S. Food Imports by Origin Country

This infographic shows the top exporting countries for U.S. food imports, ranging from exotic fruits to meat, oils, spices, and more.

Published

on

Top U.S. food imports from countries

Top U.S. Food Imports by Origin Country

The U.S. is a major producer and exporter of food products, but did you know that it’s also one of the world’s largest food importers?

Due to seasonality and climate, some foods can’t be grown on home soil, at least enough to fulfill consumption demands. Indeed, many familiar grocery items come from other countries.

This infographic from Julie Peasley uses data from the Chatham House Resource Trade Database (CHRTD) to show where the U.S. gets its food from, highlighting the top exporting countries of various imported food items.

The Types of Imported Foods

The U.S. imported around $148 billion worth of agricultural products in 2020, and according to the USDA, this has since risen to $194 billion in 2022.

Around 50% of all U.S. agricultural imports are horticultural products like fruits, vegetables, tree nuts, and more. Other large import categories include sugar and tropical products, meat, grains, and oilseeds.

With that context in mind, we break down each category and highlight the five foods with the largest single-origin import value.

Farm Fresh: Fruit and Vegetable Imports

U.S. fruit and vegetable imports have been on a steady rise since 2000. In fact, between 2011 and 2021, fruits and nuts imports made up 44% of domestic consumption, while 35% of vegetables consumed in the U.S. came from outside the country.

Mexico is by far the largest exporter of fruits and vegetables to the United States.

Fruit or VegetableLargest Exporting CountryU.S. Import Value (2020)
Tomatoes🇲🇽 Mexico$2.5B
Avocados🇲🇽 Mexico$2.1B
Peppers🇲🇽 Mexico$1.4B
Bananas🇬🇹 Guatemala$1.0B
Strawberries🇲🇽 Mexico$897M

The U.S. imported $2.5 billion worth of tomatoes from Mexico in 2020, representing 31% of international tomato trade. Avocados, native to central Mexico, were nearly as popular with $2.1 billion worth of imports.

Generally, the largest exporters of fruits and vegetables to the U.S. are North and South American countries, with products often coming from Guatemala, Chile, Peru, Costa Rica, and Brazil.

Beefed Up: Meat Imports

The U.S. is the world’s largest overall consumer of beef (or bovine meat), and the third-largest per capita consumer at nearly 37.9 kg (84 lbs) per person per year.

Therefore, despite being one of the top producers of beef, the country still imports a lot of it.

MeatLargest Exporting CountryU.S. Import Value (2020)
Bovine Cuts🇨🇦 Canada$1.4B
Bovine Cuts, Frozen🇳🇿 New Zealand$839M
Sheep Meat🇦🇺 Australia$643M
Swine Hams, Shoulders, and Cuts🇨🇦 Canada$559M
Bovine Cuts, Bone In🇲🇽 Mexico$449M

Precisely, The U.S. imported $8.7 billion worth of meat in 2020. Canada was the largest source of imported beef, with the U.S. accounting for more than 70% of all Canadian beef exports.

The sources of meat imports are more geographically diverse than fruits and vegetables, with billions of dollars of imports coming from New Zealand and Australia.

Making Waves: Seafood Imports

Despite plenty of coastlines, the U.S. imports 70–85% of all its seafood and accounted for 15% of global seafood imports in 2020 at $21.8 billion.

Frozen shrimp and prawns were the top seafood import, with $1.9 billion worth from India.

Fish and SeafoodLargest Exporting CountryU.S. Import Value (2020)
Shrimp and Prawns, Frozen🇮🇳 India$1.9B
Fish Fillet or Meat🇨🇱 Chile$1.4B
Fish Fillet or Meat, Frozen🇨🇳 China$884M
Lobsters🇨🇦 Canada$764M
Crabs, Frozen🇨🇦 Canada$719M

The largest source of U.S. seafood imports overall with $3.1 billion total was Canada, which leads in lobster, crab, and whole fish imports. It was followed by Chile at $2.1 billion, primarily for parts of fish (fillet or meat, fresh or chilled).

Other Foods: Oils, Grains, Coffee, and More

There are plenty of other types of foods and agricultural products that the U.S. relies on other countries for. Here are the largest single-origin U.S. food imports for the remaining categories:

FoodCategoryLargest Exporting CountryU.S. Import Value (2020)
Canola Oil, RefinedOils🇨🇦 Canada$1.4B
Coffee, Not RoastedStimulants/Spices🇨🇴 Colombia$1.0B
Cashews, ShelledNuts/Seeds/Beans🇻🇳 Vietnam$960M
Raw Sugar, RefinedSweetners🇲🇽 Mexico$723M
RiceCereals🇹🇭 Thailand$713M
CheeseDairy🇮🇹 Italy$310M

Some of the highest and potentially surprising exports? Imports of refined Canadian canola oil totaled $1.4 billion in 2020, while Vietnam exported a whopping $960 million worth of cashews to America.

A Global Plate: The Diversity of U.S. Food Imports

The amount and value of food imported to the U.S. highlights the diversity of consumer preferences and the importance of global food stocks, considering America is one of the world’s leading food producers.

With countries having to rely on others to satisfy demand for limited production supply or exotic foods, the interconnectedness of the global food system is both vital and delicate.

What’s clear is that the U.S. food plate is indeed a global one, with many foods taking remarkable journeys from farm to fork.

Continue Reading

Subscribe

Popular