The value of Austin’s real estate market has jumped almost 40% in the past year, twice as fast as in the United States

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Total U.S. home values ​​climbed 19% year-over-year to $39 trillion in December, the biggest gain this month since at least the turn of the millennium.

SEATTLE, February 03, 2022–(BUSINESS WIRE)–(NASDAQ: RDFN) — The total value of homes in the United States jumped 18.6% ($6 trillion) in the past year, to a record $38.6 trillion in December 2021, up from $32.6 trillion in December 2020, according to a new report from Redfin (redfin.com), the technology-focused real estate brokerage. In dollar and percentage terms, this is the largest annual gain seen in a month of December since at least 2001.

Home prices have soared during the pandemic as low mortgage rates, remote working and a surging stock market have fueled increased demand from home buyers amid a lingering housing shortage. December marked the 17th consecutive month of double-digit price increases, while the number of homes for sale hit a record low.

“The surge in home values ​​during the pandemic has widened the gap between homeowners and renters in America. Homeowners have seen their wealth increase significantly over the past year, while renters have missed out on these earnings and are now struggling with rent inflation,” said Daryl Fairweather, Redfin’s chief economist. “The silver lining is that home values ​​haven’t just soared in big, affluent cities. Homeowners in rural America, who don’t normally see substantial increases in their home’s value, have also benefited from a booming housing market.”

Housing market value increases the most in migration hotspots, including Austin and Phoenix

Total home values ​​in Austin, Texas jumped 39.2% year-over-year to $365.9 billion in December, the biggest increase among the 100 most populous U.S. metropolitan areas . The $103 billion increase in the Texas capital is roughly equal to Ecuador’s 2020 GDP. This is followed by Cape Coral, FL (36.9%), Grand Rapids, MI (33.1%), Phoenix, AZ (32.8%) and Boise, ID (32.8%). Rounding out the top 10 were North Port-Sarasota, FL (31.9%), Raleigh, NC (29.4%), Las Vegas, NV (29.1%), Salt Lake City, UT (28.4%). ) and Tampa, FL (28.3%).

Homebuyers have flocked to Sun Belt states during the pandemic as working remotely has allowed them to prioritize affordability over proximity to the office. Phoenix, Las Vegas, Tampa, Cape Coral and North Port have consistently been among the hottest places for homebuyers looking to move during the pandemic. Austin has been knocked out of the top 10 in recent months as many house hunters have found themselves overpriced.

Out-of-towners moving to Austin tend to pay more for homes than locals, which has driven up metro housing prices overall as residents of more expensive cities like San Francisco and New York have moved in. A July Redfin report found that the typical home bought by strangers in Austin sells for $470,000, compared to $447,500 for locals.

With home prices soaring in the Sun Belt, Fairweather predicts that buyers will increasingly begin to move to more affordable northern cities like Indianapolis, IN, Columbus, OH and Harrisburg, PA.

St. Louis was the only metropolitan area to see a decline, with total home values ​​falling 2.1% to $184.8 billion. The metros with the lowest increases were all in the East or Midwest: Albany, NY (7.3%), Chicago (7.5%), Washington, DC (8.8%), Pittsburgh (9%) , Frederick, MD (9.1%), Philadelphia (9.4%), Milwaukee (9.7%), Baltimore (10.3%) and Rochester, NY (10.3%).

“St. Louis doesn’t typically see big increases in home prices. That’s how it is historically, and it’s how it is now,” said Kevin Barnett, local Redfin real estate agent. “We’ve seen more people migrate here during the pandemic, but we’ve also seen out-migration. The town is also mostly made up of older houses that need work. In the past, that meant they wouldn’t sell very easily, even if we’re starting to see them selling at higher prices.”

St. Louis also saw record home value growth in 2020, which could be another reason for the year-over-year decline at the end of 2021.

Rural areas and suburbs see nearly 20% gain in total home value, outpacing cities

The total value of rural homes rose 19.5% year-on-year to a total of $4.2 trillion in December. By comparison, suburban home values ​​climbed 19.2% to $22.2 trillion and urban home values ​​rose 15% to $10.7 trillion.

While cities have rebounded from a coronavirus downturn, rural and suburban areas remain more popular than they were before the pandemic as remote workers continue to seek additional space and a relatively affordable price.

Single-family homes see 20% rise in value as Americans seek space during pandemic

The total value of single-family homes climbed 19.6% year-over-year to $29.2 trillion in December. By comparison, the value of multifamily properties soared 15.6% to $1.3 trillion, the value of condos rose 15.4% to $6.8 trillion, and the value of townhouses rose 15.3% to $1.3 trillion.

Single-family homes have become a scarce commodity during the pandemic, with dozens of Americans swapping cramped condos for larger homes in suburbs and rural areas. That said, demand for condominiums has begun to rebound as cities rebound and buyers find themselves shut out of the single-family home market due to soaring house prices.

Millennials see a 34% gain in home value, more than other generations

The total value of millennial-owned homes rose 34.3% year-over-year to a total of $4.6 trillion in the third quarter of 2021, the most recent period for which data were available. In comparison, the value of homes owned by Gen Xers increased by 20% to $11.9 trillion and the value of homes owned by baby boomers increased by 11.9% to $15.9 trillion. . Meanwhile, the value of homes owned by the silent generation fell 1.7% to $4.4 trillion as many older Americans downsized or moved into retirement homes.

Millennials have taken a growing share of the US housing market as they become homeowners, accounting for more than half of mortgage applications last year. Many of them bought their first home in 2020 when home values ​​started to skyrocket, meaning they saw significant wealth gains in their first year of homeownership. .

Black, white, Asian and Hispanic neighborhoods all see housing value gains of around 18%

Total home values ​​in majority Hawaiian and Pacific Islander neighborhoods rose 25.9% year over year in December. In comparison, majority white neighborhoods saw a 17.9% increase and majority black neighborhoods saw a 17.1% increase. Meanwhile, Hispanic or Latino neighborhoods grew by 19.1% and Asian neighborhoods saw an 18.2% gain.

Most groups saw housing market gains of around 18%. It’s different from previous years, where there were bigger gaps between the groups.

“The pandemic has been something of an equalizer when it comes to value gains in the housing market, at least in percentage terms,” Fairweather said. “This is a positive for some groups, including Asian owners, who made a big gain last year after recording one of the lowest increases in the previous year. But it also poses challenges for tenants of these groups, who can now be excluded from home ownership.”

High fire risk homes are worth 24% more than a year ago

The total value of homes in high fire risk areas rose 24% year over year in December. By comparison, home values ​​in areas at high risk of drought, heat and flooding have jumped about 21%. High storm risk areas saw a 17% increase. For every category except storms, high-risk areas saw larger increases in value than low-risk areas.

Many high-fire risk areas are hotspots for second homes, which have been in high demand during the pandemic as affluent Americans have sought respite from city life. Lake Tahoe in California, for example, has grown in popularity. Earlier this year, the Caldor Fire burned more than 200,000 acres in the region and became the 15th largest fire in state history. Other vacation and migration destinations, including Bend, OR and Boise, ID, have also seen dozens of remote workers and second-home buyers move in who now face a fire hazard.

To read the full report, including methodology, charts and additional metropolitan-level highlights, please visit: https://www.redfin.com/news/real-estate-home-value-surge-december-2021

About Redfin

Redfin (www.redfin.com) is a technology-driven real estate company. We help people find a home with brokerage, instant home buying (iBuying), rental, loan, title insurance, and home improvement services. We sell houses for more money and charge half the fees. We also run the #1 real estate brokerage site in the country. Our homebuyer clients see homes first with on-demand viewings, and our loan and title services help them close quickly. Customers selling a home can receive an instant cash offer from Redfin or have our renovation team repair their home to sell for the best price. Our rental business helps millions of people across the country find apartments and houses to rent. Since launching in 2006, we’ve saved our clients over $1 billion in commissions. We serve over 100 markets in the United States and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn more about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release mailing list, email [email protected] To see Redfin’s press center, click here.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220203005301/en/

contacts

Services for Redfin journalists:
Angela Cherry, 913-638-8249
[email protected]

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