In the early months of the COVID-19 pandemic, U.S. home sales slumped. Since then, however, the market has come roaring back — and rising demand, in conjunction with a relatively low supply of housing, has caused home values to surge.
Between March 2020 and March 2021, the typical single-family American home appreciated in value from $250,179 to $276,717, a 10.6% increase. Of course, housing markets also respond to local forces, and in some parts of the country, home values have actually declined.
In 15 cities and towns with populations of 15,000 or more, home values have depreciated by at least 2.6% over the past year. In some of them, the value of a typical family home has plummeted by over 7.8%. Though these communities span the country, they tend to be concentrated in the Southern United States.
One factor that can contribute to rapidly climbing home prices at a local level is demand. And demand for housing is often precipitated by a growing population. According to the most recent available Census data, nine of the 15 cities and towns on this list reported population decline over the last one-year period.