Question

The average price of a home sold in the United States in 1980 was $47,200 and the average income was $21,063. In 2018, the average price for a home was $380,000, and the average income was $63,179.1) Find the relative change in housing prices from 1980 to 2018.

Answer 1

The relative change in housingbprices from 1980 to 2018 is 705.08475

Explanation:

In 1980, the average price of houses was $47,200

In 2018, the average price of houses was $380,000.

The relative change in housing prices from 1980 to 2018 = [(current prices) - (old prices)]/(old prices) × 100

= (380000 - 47200)/47200 × 100

= 332800/47200 × 100

= 7.0508475 × 100

= 705.08475