Top 10 States with Significant Housing Price Increases
Idaho leads the nation in housing price growth over the past decade, experiencing the highest increase in home prices. Western states that have seen a surge in home prices during the pandemic housing frenzy also rank prominently on the list, with Utah closely following in fourth place.
According to a new ranking by SelfStorage, a storage unit finder site that utilized Zillow data, average home prices between two periods (2012-2016 and 2017-2022) were compared to calculate each state’s home price growth.
Idaho claimed the top spot with an impressive increase of 78.7%. The state’s average home price rose from approximately $152,221 in 2012-2016 to $272,019 in 2017-2022, marking a significant $119,798 increase.
Nevada secured the second position with a 74.2% rise. Its average home price escalated from $195,660 in 2012-2016 to $340,779 in 2017-2022, amounting to a $145,119 increase.
With a growth of 64.9%, Washington ranked third. The state witnessed its average home price climb from $209,646 in 2012-2016 to $345,726 in 2017-2022, realizing a $136,080 jump.
Utah followed closely in fourth place, experiencing a price increase of 64.7%. The Beehive State’s average home price escalated from $240,880 in 2012-2016 to $396,824 in 2017-2022, resulting in a $155,944 increase. Utah also ranked as the third most expensive state on the list, trailing behind California and Colorado.
The following is the complete ranking of the top 10 states with the highest home price increases:
- Idaho – 78.7% increase
- Nevada – 74.2% increase
- Washington – 64.9% increase
- Utah – 64.7% increase
- Oregon – 61.2% increase
- Arizona – 61.1% increase
- Montana – 58.2% increase
- Tennessee – 56.2% increase
- California – 54.6% increase
- Colorado – 54.4% increase
During the specified time frame, home prices in Utah experienced a significant surge of nearly 50%. However, the conclusion of the period of low mortgage interest rates during the pandemic, coupled with aggressive rate adjustments by the Federal Reserve to counter record levels of inflation, resulted in adverse effects primarily felt in the Western region.
The escalation of mortgage interest rates to current levels of approximately 7% triggered a dichotomous correction in the real estate market. While the East witnessed continued price appreciation, several areas in the West observed a decline in property values.