In 1916, the average cost of a new home in the United States was $4,000. This was a significant increase from the average cost of $2,500 in 1900, and it reflected the rising cost of materials and labor during World War I. The cost of a home varied widely depending on its location and size. For example, a small home in a rural area could be purchased for as little as $1,000, while a large home in an urban area could cost as much as $20,000.