States Where Home Values Increased The Most During COVID

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The housing market has been red hot during the pandemic, with home prices hitting record highs up until a few months ago. More recently, surging mortgage rates have put some pressure on the housing market, slowing the climb in housing prices. That could be good news for buyers, though home prices remain considerably higher than they were in 2019 after surging in the two years since. 

Nationwide, the average median home value rose 17% between 2019 and 2021, according to data from the 2021 and 2019 American Community Surveys from the U.S. Census Bureau. During that time, median household incomes grew a far smaller 6%. That gap has made homes, especially in some areas, more unaffordable. 

To identify the states where home values increased the most during the COVID-19 pandemic, 24/7 Wall St. reviewed data from the 2021 and 2019 American Community Surveys from the U.S. Census Bureau. States are ranked on the percent change in median home value from 2019 to 2021. All other data came from the Census Bureau. 

Three of states where home values spiked the most during COVID-19 are in the West. Idaho median home values surged 44.7% from 2019 to 2021, even as median household income  rose 9% during that time – the seventh largest increase in median household income.

In Arizona, meanwhile, median household income rose 11.3% from 2019 to 2021, the third largest increase. Yet that might not be enough to cover the 31.4% rise in median home values during the same period. 

In No. 3 Utah, median home values were 27.7% higher in 2021 than they were in 2019, yet household incomes rose a mere 4.8%, much lower than the national increase in median household income. (Also see, cities with the cheapest housing.)

As we look into the year ahead, considering the recent surge in mortgage rate, some economists predict either a slow decline in home values through 2023 or a crash, Forbes recently reported. (This is the mortgage rate in America every year since 1972.)

Click here to see states where home values increased the most during COVID.

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