A look at affordability, inflated asset classes, and the national debt

One of the top issues we hear about recently affecting Americans is affordability. The U.S. is grappling with rising costs, and affordability is taking center stage. It’s a consistent popular search on Google, and polls show affordability is the top issue facing Americans. Let’s take a look at some of our asset classes and big-ticket items to see how rapidly prices have increased, but let’s first take a look at our national debt.

As of Dec. 6, the total U.S. debt was $38.4 trillion, a 6.16% increase from the previous year. It has doubled in the last decade. The U.S. has a statutory limit on federal debt, but it has been reversed several times. There is a huge mismatch between spending and revenue. 

Every day, the U.S. spends $2.6 billion just on interest to service the debt, up 8% from the same period a year ago. 

Looking back 11 years to 2014, the national debt was $17.8 trillion. In 2004, it was $7.4 trillion. In 1994, $4.6 trillion; in 1984, $1.5 trillion; and in 1974, $475 billion. That’s an amazing increase in 51 years, from $475 billion to $38.4 trillion.

Real estate 

For October 2025, the median sales price for a single-family home in the U.S. was $415,000-$420,000. Between 2019 and 2023 alone, the median price for a single-family home increased by more than 60%.

For December 2025, in New Hampshire, the median sales price for a single-family home was approximately $525,000, representing close to a 5% increase from the previous year. Housing remains very expensive; the state’s median household income is just 60% of what is necessary to qualify for a medium-priced home under today’s interest rates. 

Back in 2021, the index was at 100 when median-income families could afford median-priced homes. There were 2,092 homes on the market at the end of November in New Hampshire. That’s a 19% increase over last year; however, the state only has a two-month supply of inventory compared to the national average of 4.3 months’ supply. We should have a five-to-seven month supply to be considered a balanced market. The last time New Hampshire experienced a balanced market was in October 2016, with 7,112 homes for sale.

Homes were flying off the shelves in the first two years of the pandemic when rates were low, but when the interest rates rose, many homeowners stopped selling so they wouldn’t have to trade a low mortgage rate for a high one. That dynamic, called the mortgage rate lock-in effect, has exacerbated the housing shortage. American home sales this year hit their slowest pace since the financial crisis era of 2010.

 A record number of U.S. homes are worth $1 million or more, and many million-dollar properties are no longer considered luxury homes.

The most expensive home in America hit the market this year in Aspen, Colorado, at $300 million. Little Lake Lodge in Aspen, Colorado, is a sprawling 74-acre estate. A Naples, Florida, waterfront compound was the most expensive home sale of 2025 so far, going for $133 million. 

The year 2025 has seen a significant uptick in inventory for high-end luxury properties, giving buyers more choices.

Stock market

The Dow Jones Industrial average hit 47,560 on Dec. 10, a bit lower than its all-time high on Nov. 12, at 48,254. Compare that to its close on Nov. 14, 2014, at 17,652. It’s jumped two and a half times in 11 years. 

The S&P 500 closed at 6,840 on Dec. 10. If you look back 11 years ago to Nov. 12, 2014, the S&P index closed at 2,039. You can see it increased three and a quarter times over 11 years.

The NASDA Composite Index closed at 23,654 on Dec. 10, just a fraction lower than its all-time high close of 23,958 on Oct. 29. Look back 11 years to Nov. 12, 2014, when it closed at 4,660. You can see it increased fivefold over the 11-year span. The magnificent seven reached epic highs. Nvidia’s market cap just hit 4.31 trillion, followed by Apple at 4.1 trillion and Alphabet (Google) at 3.8 trillion. 

Gold

The price of one ounce of gold as of Dec. 11, was $4,108, just shy of its all-time high on Oct. 15 at $4,379. Imagine it has gone up 7.36% in 30 days, 25.68% in six months, 59.91% in one year, and 130.79% in five years… something is brewing.

Silver

The price of one ounce of silver as of Dec. 11 was $62.05, just pennies shy of its all-time high of $62.88 this month. Compare that to its price 10 years ago, at $13.93 per ounce; that’s a 4.5 times increase in 10 years.

Bitcoin

The price of bitcoin in U.S. dollars as of Dec. 11, was $89,730. It dropped after the Fed cut its benchmark rate by 25 basis points. The U.S. dollar index fell to a seven-week low after the Fed rate cut. Bitcoin has now dropped below its peak of $126,210 on Dec. 6. If you go back to Nov. 14, 2022, roughly three years ago, it was priced at $16,618. That’s an increase of seven and a half times in only three years. It’s a volatile ride, however.

Vehicles

Can you believe the average price for a new car is hovering around $50,000? I remember when I purchased my first car (used), a 1967 Triumph Spitfire for $700. Today, that might get you a new set of brakes. A new full-size pick-up truck today might fall in the $50,000-$60,000 range, with many of them priced higher. My first home (new construction, post and beam house, on 5 acres in Gilford) cost $57,000. Wow… hard to believe how much prices have inflated since then.

College education

The average four-year cost (tuition fees, room and board) for an in-state public university is $124,000, for an out-of-state public university it’s $204,000, and for a private, nonprofit university it’s $262,000. Many elite universities are much more expensive, for example, at Boston College today, the total sticker price is roughly $93,168 a year for tuition/fees, room and board, books, etc. That is $372,672 for four years (not considering grants/scholarships). With AI advancing at warp speed, what will the job market be after four years of college?

Food, groceries

Grocery prices have increased 30% over the past five years, with some items like beef and eggs jumping 52%-83%. 

Car, home insurance

Average car insurance premiums in the U.S. have increased roughly 50% to 65% since 2020. Home insurance premiums in the last five years have risen roughly 70% on average in the U.S.

Health insurance

Employer-sponsored family premium plans have risen over 24% since 2019. Over the last five years, premiums have increased 26% to as high as 45%. Employer Health Insurance plans have seen average family premiums jump up to 51% over the past decade. 

There is no question that the above asset classes and household expenses have approached record highs this past year. History tells us most asset price cycles make adjustments and corrections to their upward trajectories. The big question is where we are now in the cycle.

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This article was written by Frank Roche, president of Roche Realty Group with offices in Meredith, and can be reached at 603-279-7046. Visit

rocherealty.com to learn more about the Lakes Region and its real estate market.