In this article, we will be analyzing the US housing market and the pandemic's effect on it while covering the 20 major cities with home price increases since the pandemic. If you wish to skip our detailed analysis, you can move directly to the 5Major Cities with the Highest Home Price Increases Since the Pandemic.
The Impact of the Pandemic on US Real Estate
As reported by Redfin, real estate in the US had drastically changed within 2 years of the pandemic, with the median prices going up by 34%. The proportion of homes selling above their list price also increased by 21.8% between 2020 and 2022, while the housing inventory declined by 49.9%.
On February 7, Zillow reported that rental prices have climbed by 29.4% since the outbreak of the pandemic. This accounts for an annual increase of 7% over the preceding 4 years. As of 2024, the year-over-year rise in rents has been recorded at 3.4%. Furthermore, the income necessary to afford rent has increased by 29%. Most expensive rental markets have also changed since San Francisco has moved from being the second most costly market for rents to the fourth place while New York and Boston came second and third. San Jose still tops the list. You can also take a look at some of the most overpriced housing markets in America.
Zillow reported that the new listings witnessed a rise of 43.5% month-over-month in January. However, these listings lagged behind the statistics for pre-pandemic January, 66% in 2019 and 63.4% in 2020. On the contrary, you can view some of the large US cities with the fewest homes for sale. As of January, the typical mortgage payment increased by 7.2% year-over-year while the rise since the pre-pandemic period was reported to be as high as 103.1%.
Current Market Dynamics
Amidst high mortgage rates, the US real estate market tends to be returning back to the pre-pandemic trend of home prices growing nearly half a percent every month. On March 25, CNBC reported that the month-over-month home price growth was recorded at 0.6% in February. Despite this rebound in home prices, affordability issues and a limited inventory continue to impact the market. Another significant difference between the current scenario and the one that was common before the pandemic is the decrease in the number of transactions. High mortgage rates have been cited as the reason behind this.
Even the aforementioned rise in new listings has been referred to as a minor recovery from rock bottom. On the brighter side, homeowners who chose to hold onto their homes during high mortgage rates are returning back to the market, resulting in a slightly improved supply of inventory. This mortgage rate lock-in effect is expected to diminish over time. On the other hand, a modest drop in mortgage rates has been forecasted while the home prices are going to be flat or unchanged across the country.
Housing Options to Look Out For
Despite the substantial increase in home prices since the pandemic, American homebuilders including Tri Pointe Homes, Inc. (NYSE:TPH), KB Home (NYSE:KBH), and Century Communities, Inc. (NYSE:CCS) continue to offer reasonable real estate options to settle in various parts of the country. Let’s take a look at what these firms have been up to. Some of the largest homebuilders in the US have also been previously discussed.
Tri Pointe Homes, Inc. (NYSE:TPH) is one of the largest American homebuilders and constructs premium homes and communities in 10 states. On April 2, Tri Pointe Homes, Inc. (NYSE:TPH) announced the opening of a 56-home neighborhood situated in Bonney Lake ‘Glacier Pointe at Tehaleh’. The company’s customers will be able to access 10 unique design collections by the Emmy award-winning design expert, Bobby Berk. The three model homes first-ever designed by Bobby Berk have been made open for tours.
KB Home (NYSE:KBH) is one of the largest homebuilding companies in the US. The company has constructed more than 680,000 homes in the past. On April 5, KB Home (NYSE:KBH) announced the launch of its new community in Moreno Valley, California. While local schools are located close to the new community ‘Palmetto’, recreational activities such as hiking and mountain biking can also be enjoyed. Residents can also access Riverside County’s major employment centers. Those who are eager to shop or dine can visit Moreno Valley Mall. Pricing for the new homes at Palmetto starts from the $560,000s.
Century Communities, Inc. (NYSE:CCS) is a major American homebuilder that is engaged in the construction, innovative marketing, and sale of homes for diverse buyers. The company operates in 18 states and more than 45 markets across the country. On April 2, Century Communities, Inc. (NYSE:CCS) reported that the company’s Century Complete brand has initiated sales in its new community in Rincon. The new community 'Pine Brook’ allows residents to access employment and entertainment hubs in Savannah due to its ideal location. The homes have been priced from the low $300,000s.
Now that we have analyzed the impact of the pandemic on the US real estate market and the current housing market situation, let’s move to the 20 major cities with home price increases since the pandemic.
20 Major Cities with the Highest Home Price Increases Since the Pandemic
20 Major Cities with the Highest Home Price Increases Since the Pandemic
Our Methodology:
In order to compile a list of the 20 major cities with home price increases since the pandemic, we sourced data from the leading real estate data provider, Zillow. We utilized Zillow’s Metro Explorer to see the metro-wise change in median list prices since the pandemic. Hence, the cities have been ranked in ascending order of their increase in median list prices since the pandemic, as of February 2024.
20 Major Cities with the Highest Home Price Increases Since the Pandemic
20. Appleton
Home Price Increase Since Pandemic: 59.2%
Appleton is situated in the Outagamie, Calumet, and Winnebago counties in Wisconsin. As of February, the median list prices have increased by 59.2% in Appleton thereby ranking it among the major cities with the highest home price increase since the pandemic.
19. Longview
Home Price Increase Since Pandemic: 59.3%
Gregg County in Texas hosts the city of Longview. Currently, the median list price is $287,000 in the city. This price has experienced an increase of 59.3% since the pandemic.
18. Chattanooga
Home Price Increase Since Pandemic: 60.0%
Chattanooga is positioned along the Tennessee River. As of February, the increase in the city’s median list price since the pandemic was reported to be 60.0%. This ranks the city 18th on our list.
17. Fayetteville
Home Price Increase Since Pandemic: 60.2%
Fayetteville is a populous city in Arkansas which ranks as one of the 20 cities with the highest home price increases since the pandemic. This increase was recorded at 60.2% by Zillow.
16. Springfield
Home Price Increase Since Pandemic: 60.3%
Springfield is located in the state of Missouri. As of February, the median list price in Springfield is $289,925. This price has increased by 60.3% as compared to the pre-pandemic times.
15. Port St. Lucie
Home Price Increase Since Pandemic: 61.5%
Port St. Lucie is positioned in St. Lucie County, Florida. As compared to pre-pandemic, the median list price in Port St. Lucie tends to be 61.5% higher.
14. Tampa
Home Price Increase Since Pandemic: 62.0%
Tampa is another Florida-based city where home prices have increased. The median list price in the city witnessed a rise of 62.0% since the pandemic.
13. Lakeland
Home Price Increase Since Pandemic: 62.5%
The 20 major cities with the highest home price increases since the pandemic rank Lakeland as well. While the current median list price in the city is $346,900, it has increased by 62.5% since the pandemic.
12. Clarksville
Home Price Increase Since Pandemic: 63.4%
Clarksville is a city in Tennessee where home prices have risen by 63.4% relative to the pre-pandemic period. $305,250 is the current median list price in the city.
11. Manchester
Home Price Increase Since Pandemic: 63.5%
Manchester is a populous city based in New Hampshire. As of February, the city’s median list price has gone up by 10.6% year-over-year while recording a rise of 63.5% since the pandemic.
10. Kingsport
Home Price Increase Since Pandemic: 63.6%
Kingsport is situated in Sullivan and Hawkins counties in Tennessee. The median list price in the city is currently $276,750 and has increased by 63.6% as compared to the pre-pandemic duration.
9. Ocala
Home Price Increase Since Pandemic: 64.2%
The city of Ocala is in North Florida. The city’s median list price has increased by 2.2% since 2023. Similarly, it has also increased by 64.2% since the pandemic.
8. Portland
Home Price Increase Since Pandemic: 64.7%
Portland ranks as one of the 20 major cities with price increases since the pandemic. The city is a part of Maine and has recorded a 64.7% rise in its median list price since that period.
7. El Paso
Home Price Increase Since Pandemic: 65.9%
El Paso is located in El Paso County, Texas. As compared to the pre-pandemic times, the median list price in El Paso has gone up by 65.9%. Currently, the city’s median list price is $287,000.
6. Allentown
Home Price Increase Since Pandemic: 66.1%
Allentown ranks 6th on our list by recording an increase of 66.1% in its median list price since the pandemic. The city is situated in Pennsylvania. As of February, prices in Allentown have also gone up year-over-year.
