Boston real estate vs inflation: did it beat the dollar?
114% × 46%
Updated June 1, 2026 · Redfin · BLS / FRED (CPIAUCNS)
Since 2013, Boston real estate is up 114% while U.S. consumer prices rose 46%. Boston real estate far outpaced inflation — but the ride was brutal: its worst drop was 23%. Figures in U.S. dollars.
Base 100 since 2013
Why compare Boston home prices (US$/m²) and U.S. inflation (CPI-U)
Boston sits firmly in the expensive coastal tier, and the per-square-meter value tracks a metro defined by universities, hospitals, biotech and finance. Tight housing supply across the urban core and inner suburbs has historically kept prices high relative to the national average. The market softened during the 2008 housing crash and recovered through the 2010s, broadly in line with other constrained Northeast metros where demand from a well-paid knowledge economy meets limited new construction.
Returns by window
| Window | Boston home prices (US$/m²) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | -3% | 4% |
| 5 years | -4% | 24% |
| 10 years | 36% | 39% |
| since 2013 | 114% | 46% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| Boston real estate | 23% | -23% |
| Inflation (CPI) | 1% | -2% |
$10,000 in each, since 2013
| Asset | Value today |
|---|---|
| Boston real estate | $21,391 |
| Inflation (CPI) | $14,553 |
Frequently asked questions
Did Boston real estate beat inflation?
Over the period, Boston real estate returned 114% while U.S. consumer prices rose 46%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.