We’re all acutely aware of how challenging this year has been, financially, physically, and emotionally. As the pandemic has waged on, people lost jobs, struggled to work with little or no childcare. But the housing market, for some reason, experienced a boom. Low mortgage rates, combined with the desire people have for more space, mean that certain cities in the U.S. have seen a substantial rise in home costs. Here’s what you need to know about the cities that have seen the most substantial rises in housing costs.
According to Bloomberg, “home prices soared the most in 15 years,” thanks to a perfect storm that aligned everything just right. This includes a tight housing market with a lot of competition due to the high demand for an upgrade in space both inside and outside our home, thanks to the pandemic. Add in historically low mortgage rates where the “average for a 30-year loan dropped to 2.97% in the most recent data, moving closer to the record low 2.65% set in January,” and you’ve got a good market.
This created a huge jump in the cost of homes in cities that may not have been expected to see so much growth so quickly. “These data remain consistent with the hypothesis that Covid has encouraged potential buyers to move from urban apartments to suburban homes,” according to an S&P CoreLogic Case-Shiller index of property values report released on April 27, 2021.
Overall, house prices are up 12%, but some cities in the United States have seen more growth than others. When we compare year-over-year (YoY) costs, these are 10 locations in the U.S. where home prices increased the most, and there are more than a few surprises.
Here Are The Cities Where Home Prices Rose The Most
10. New York, NY, with a YoY change of 11.59%
9. Detroit, MI, with a YoY change of 11.7%
8. Charlotte, NC, with a YoY change of 11.71
7. Los Angeles, CA, with a YoY change of 11.94
6. Cleveland, OH, with a YoY change of 12.54
5. Tampa, FL, with a YoY change of 12.71
4. Boston, MA, with a YoY change of 13.70
3. Seattle, WA, with a YoY change of 15.45
2. San Diego, CA, with a YoY change of 16.95
And the city in the United States that saw its prices of homes rise the most was…
1. Phoenix, AZ, with a 17.37% jump.
It’s too soon to say if these prices will level out over the next while or if the soar in prices is expected to continue.