The residential real estate boom in America is truly remarkable and may be looked back on as the period when home prices rose the most in decades. It is fueled largely by people who want to leave the west and east coast’s large, expensive cities. Many of these people have moved inland to smaller cities with lower costs of living and perceived better lifestyles. However, the flood of people into some states and cities has pushed prices so high that affordability in these smaller cities has become an issue. In some areas, homes only stay on the market for days, and occasionally less.
The carefully followed CoreLogic Home Price Insights report for June has just been released. It looked at home prices by state and city. It examines places where prices have surged, as well as cities where they are most likely to drop. This forecast of potential price declines goes through June 2022.
The broadest conclusion of the report is that “Home prices nationwide, including distressed sales, increased year over year by 17.2% in June 2021 compared with June 2020 and increased month over month by 2.3% in June 2021 compared with May 2021.”
Many of the states where prices have risen fastest are in the Great Plains and the Northeast, mostly inland from the Atlantic Ocean. They include Idaho, Montana, Vermont, Rhode Island and Connecticut.
The state where prices increased the most from last June to this one is Idaho, where prices have risen 34.2%. Most experts say that many of these people have come from California and Washington’s large coastal cities, which include several around San Francisco, as well as Los Angeles and Seattle.
Idaho is among the smallest states in America. It ranks 39th among all states with a resident count of 1,839,106. However, it is among the fastest-growing of all states, with a population growth of 17.3% over the past decade.
Here are the 10 states where home prices are rising fastest:
- Idaho, 34.2%
- Arizona, 26.1%
- Montana, 24.3%
- Utah, 23.4%
- Washington, 21.6%
- Vermont, 21.2%
- Rhode Island, 20.1%
- Nevada, 19.9%
- Oregon, 19.7%
- Connecticut, 19.6%