The cost of housing has increased everywhere in the United States. Still, the gains in certain states have been especially dramatic.
Zillow’s median-only house value index puts the median-priced U.S. home at $344,141 as of this writing. That increase exceeds 20% from the previous year.
When looking at Zillow’s statistics over a more extended time period, however, the average value of properties in the 35th to 65th percentile range shows a dramatic increase.
Listed below are the states where house prices have risen dramatically throughout the last 19 years.
6. California
It’s not shocking that California made the cut; in a city-by-city look at median property listing prices, Californian metropolises like San Jose, Los Angeles, San Francisco, and San Diego ranked first, second, and third, respectively.
Despite a slower rate of appreciation than other states, California’s median house value of $575,250 in April 2020 placed third in the USA, behind only Hawaii and the District of Columbia.
However, property prices in California increased by 116% between 2002 and 2020.
5. Oregon
As the fifth most expensive state to purchase a home in, Oregon was the last state in the top five.
According to The Washington Post, Portland, Oregon, has one of the hottest real estate markets in the country.
Zillow’s research shows that even though property values have increased, they are still lower than in many other states with the most substantial price hikes.
The median home value in Oregon was $383,482 in April 2020, up from $176,325 in April 2002.
4. Washington
According to Zillow, property prices in Washington state increased by 120% between 2002 and 2020, from about $196,000 to about $432,000.
Home values in 16 locations around the Seattle area are over $1 million, according to a study from KING 5, a local Washington news station.
In certain areas, as many as twenty to thirty people are interested in purchasing a single home, but only one is available.
We also think that interest rates have been increasing a little more recently. Consequently, a new emotion is developing: anxiety about being left behind.
3. Idaho
According to the data provided by Zillow, Idaho was the only state where prices increased by more than 100 percent in 2020 compared to the figures from 2012 and 2002.
Residence prices in the Gem State increased by 125 percent between 2002 and 2020 and 104 percent from 2012.
Zions Bank senior economist Robert Spendlove told a Boise television station that the state’s housing market has been number one in the nation for several years but that prices may soon peak.
Spendlove predicted that while demand and prices would rise in Idaho, “we wouldn’t see that dramatic acceleration” because of the state’s relatively low costs compared to the rest of the country.
Zillow’s figures corroborate this interpretation, revealing that even if prices have gone up, the average property value in April 2020 remained at $304,468. This is significantly lower than the average home value in the country’s most populous states.
2. Hawaii
Between 2002 and 2020, the housing market in the island state saw the second-highest overall price growth.
According to Zillow’s home price index, home values have risen by approximately 161% since 2002 and nearly 39% since 2012.
The Honolulu Board of Realtors has blamed supply and demand for the recent record-breaking March prices for single-family homes on the famous Hawaiian island of O’ahu.
The question on everyone’s mind is at what point it will cause the market to return to its normal state. We continue to anticipate a competitive market environment until inventory levels converge.
1. Washington, D.C.
While not a state in the traditional sense, Zillow’s research indicated that Washington, D.C. had the most increase in property values from 2002 to 2020.
During that time period, the prices of homes in Washington, D.C., increased. They grew by little more than 167%, while the price increase since 2012 has been almost 54%.
Looking closely at the data, we find that the median price for D.C. residences in the 35th to 65th percentile is $600,000. Zillow estimates its worth will rise to $650,167 by April 2020 from $243,410 in the same month in 2002.
Because there is such a large number of people looking to buy a home, but so few are available in the District, property prices have skyrocketed.
The idea of real estate or a home, a housing market analyst and consultant told The Washington Post, is “very appealing” to individuals during economic or personal uncertainty.
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