US home prices saw biggest jump in 34 years

US home prices in 2021 saw their biggest increase in at least 34 years, according to data released Tuesday, as buyers spent the year snapping up homes and builders struggled to keep up.

Home prices surged 18.8 per cent last year, according to the S&P CoreLogic Case-Shiller US National Home Price index, the biggest jump in its existence and much more than the 10.4 per cent jump seen in 2020.

The US real estate market last year saw the most existing homes sold in 15 years, with sales topping six million even as supply sunk to an all-time low by the close of the year.

Builders have had to deal with double-digit increases in material costs as well as a shortage of workers. That pushed home prices higher, and played a role in consumer prices experiencing their largest jump in decades.