The average residential housing price in 1925 was approximately $6,000, according to Robert Shiller's U.S. Housing Price Index. From 1926 through 1942, houses prices steadily decreased due to a depressed U.S. economy.
The 1920s followed a period of war and inflation. By 1925, some Americans reaped the benefits of lower taxes and a strong stock market. However, the average family didn't own stocks, and many still lived on farms. Prices for agricultural goods decreased in the 1920s, causing hardship for many farmers throughout the decade.
The U.S. stock market crash of 1929 devastated most Americans, both rich and poor. By 1932, average housing prices plunged to $1,000.