Low inventory across the United States has kept competition for homes hot this winter. Every state is seeing some form of home price appreciation, but the ones with the largest population growth are seeing prices rise fastest.
People Are Moving
In a year where population growth slowed to 0.1%, the slowest rate ever in the history of the United States, some states saw “The Great Migration.” The states with the greatest increase in population year-over-year saw home prices that went above the national median. See the chart below to see the ten states with the highest amount of population growth and home prices that went above the median.
The states with the largest population growth have been the most affected by home price increases. Senior Economist for Zions Bank, Robert Spendlove, says that the net in-migration into Idaho was almost 50-thousand people and was one of the largest factors for the jump in home prices there. Spendlove added, “While prices are way up relative to other parts of the country, Idaho is still affordable, so we’ll continue to see prices going up, we’ll continue to see strong demand, but we won’t see that strong acceleration.”
Bottom Line
If you’re considering buying a home, take careful consideration of how the population is changing in your state. If people are moving away, there’s a possibility that home price appreciation could slow down or even get cheaper. If you’re in a state that everyone is flocking towards, you may need to prepare for even more home price appreciation.
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