According to the Census Bureau, in October 2016, the average house price in the United States was $27,358. 7 years earlier, the average price was $21,108. What was the annual increase in the price of the average house sold?


To find the annual increase in the average house price over the 7 years, we can use the formula for the average annual increase:

\[
\text{Annual increase} = \frac{\text{Final price} - \text{Initial price}}{\text{Number of years}}
\]

Where:
- Final price in 2016 = \$27,358
- Initial price 7 years earlier = \$21,108
- Number of years = 7

Now, let's calculate the annual increase:

\[
\text{Annual increase} = \frac{27,358 - 21,108}{7} = \frac{6,250}{7} = 892.86
\]

The annual increase in the average house price is approximately **$892.86**.

Would you like more details or have any further questions? Here are 5 related questions you can consider:

1. How can inflation impact the annual increase of house prices over time?
2. What is the compound annual growth rate (CAGR) for house prices in this period?
3. How would the increase differ if the initial price had been \$20,000 instead of \$21,108?
4. What factors might influence the rate at which house prices increase in different regions?
5. How would a 10-year comparison differ from the 7-year analysis?

**Tip:** When analyzing price increases, it's useful to consider the effect of inflation to understand real purchasing power changes.

According to the Census Bureau, in October 2016, the average house price in the United States was $27,358. 7 years earlier, the average price was $21,108. What was the annual increase in the price of the average house sold?

Learn how to calculate the annual increase in the average house price from $21,108 to $27,358 over a 7-year period using simple arithmetic progression. This problem is perfect for middle school students (Grades 6-8) and involves key algebraic concepts.

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