How much BTC will it take to buy a US house in 2024?
US real estate market dynamics under changing mortgage rates
The US real estate market, long characterized by interest rate volatility and supply-demand imbalances, is currently affected by a significant decline in mortgage rates. According to the Federal Reserve Bank of St. Louis, as of August 8, the 30-year fixed-rate mortgage rate fell to 6.47%. Previously, mortgage rates hovered around 8% in November, the highest level in nearly two decades. The decline in mortgage rates ahead of the Fed's expected action indicates that the real estate market landscape may be changing.
While traditional markets such as real estate struggle with interest rate fluctuations, Bitcoin (BTC) provides a very different monetary system. Unlike central banks, which can control economic conditions by adjusting the money supply, Bitcoin's supply is capped at 21 million coins. This limit insulates Bitcoin holders from the inflationary pressures that usually arise from an increase in the money supply. As a result, Bitcoin has attracted attention as a potential tool to hedge against fiat currency devaluation policies.
Comparing the changes in US house prices with Bitcoin valuations
The intersection of Bitcoin and real estate can provide profound insights. For example, in August 2014, when Bitcoin was priced at $491, it took approximately 694 BTC to purchase an average U.S. home that sold for $340,400. Fast forward to August 2019, Bitcoin’s value has surged to $11,523, and the amount needed to purchase a home that sold for $382,700 has dropped to 34 BTC. As of August 2024, Bitcoin is trading at around $60,000, and the amount of BTC needed to purchase an average home that sold for $501,700 has dropped to just under 9 BTC. These trends highlight Bitcoin’s considerable value growth relative to the U.S. dollar and average home prices.
