Martin Luther King is assassinated. In 1968, the killing of Martin Luther King Jr. sent shockwaves across the world. The average new home that year cost $26,600 (equal to $186,441 now). The country was still recovering from the effects of World War II, with many people living in small houses on small plots of land. Houses were not just for shelter but also served as investments for homeowners. Investors bought up homes at cheap prices after the war and made money by selling them at a profit later. There are several factors that determine how much a house costs. Such things as the size of the house, its location, and its quality all play roles. After the war, there was a shortage of housing so prices were low. As time went on, more families wanted to move out of old buildings and into modern homes, which increased the demand for housing and therefore raised its value. This is why houses cost more now than they did in 1968; otherwise, we'd be living in shacks. The median price of homes in America is now $200,000. That's more than double what it was back in 1968. While you might be able't afford a house today, that doesn't mean you couldn't have owned one back then.