Home Value Appreciation During The Coronavirus Pandemic
The top 10 states each showed over 50% growth
A Ranch in Montana
Many people sought to relocate during the Covid-19 coronavirus pandemic that started in early 2020 and lasted over three years. This led to considerable increases in home prices. In this story, BestPlaces looks at how housing prices appreciated across the United States from January 2020 through December 2022.
Based on self-reported Census data, these proprietary BestPlaces figures reflect current home values (not necessarily listing prices) and are adjusted using current listing and sales prices.
-
Florida led the way with a 62.3% increase in home value during the pandemic.
-
The relatively undiscovered Western states of Montana and Idaho finished at two and three, as the allure of wide-open spaces and natural surroundings beckoned homebuyers.
-
The District of Columbia showed a relatively small increase of 10.5% and the state with the lowest three-year appreciation rate was Louisiana at 24.7%.
-
The overall national home appreciation was 41.7% during this time period.
Median Home Value Appreciation by State
| Rank |
State |
Median Home Value (Self-Reported) |
3-year Appreciation (Jan. 2020-Dec. 2022) |
| 1 |
Florida |
$362,400 |
62.3% |
| 2 |
Montana |
$441,800 |
60.7% |
| 3 |
Idaho |
$445,000 |
58.5% |
| 4 |
Tennessee |
$277,400 |
55.4% |
| 5 |
Arizona |
$407,400 |
6.2% |
| 6 |
Maine |
$334,000 |
54.8% |
| 7 |
North Carolina |
$289,300 |
54.0% |
| 8 |
Utah |
$510,600 |
52.8% |
| 9 |
South Carolina |
$259,900 |
51.9% |
| 10 |
Georgia |
$308,200 |
50.8% |
| 11 |
New Hampshire |
$421,300 |
48.3% |
| 12 |
Arkansas |
$181,800 |
45.9% |
| 13 |
Vermont |
$344,600 |
45.9% |
| 14 |
Hawaii |
$800,200 |
45.5% |
| 15 |
Alabama |
$214,000 |
44.1% |
| 16 |
South Dakota |
$268,000 |
43.7% |
| 17 |
Texas |
$297,600 |
43.3% |
| 18 |
New Mexico |
$267,100 |
42.4% |
| 19 |
Nevada |
$417,100 |
42.2% |
| 20 |
Connecticut |
$362,100 |
41.8% |
| 21 |
Washington |
$534,700 |
41.8% |
| 22 |
Indiana |
$221,600 |
41.5% |
| 23 |
Oklahoma |
$174,600 |
40.2% |
| 24 |
Kentucky |
$194,300 |
40.1% |
| 25 |
Rhode Island |
$401,200 |
40.1% |
| 26 |
New Jersey |
$432,100 |
40.0% |
| 27 |
Delaware |
$336,200 |
40.0% |
| 28 |
Nebraska |
$228,100 |
39.9% |
| 29 |
Ohio |
$197,000 |
39.3% |
| 30 |
Colorado |
$527,200 |
38.6% |
| 31 |
Missouri |
$212,300 |
38.3% |
| 32 |
Wisconsin |
$244,100 |
38.2% |
| 33 |
Virginia |
$343,200 |
37.9% |
| 34 |
New York |
$413,600 |
36.9% |
| 35 |
Michigan |
$218,700 |
36.8% |
| 36 |
California |
$733,500 |
36.5% |
| 37 |
Pennsylvania |
$242,800 |
36.2% |
| 38 |
Mississippi |
$155,300 |
36.2% |
| 39 |
Oregon |
$468,400 |
36.1% |
| 40 |
Wyoming |
$324,500 |
36.0% |
| 41 |
Kansas |
$194,100 |
34.5% |
| 42 |
Massachusetts |
$557,300 |
34.5% |
| 43 |
Iowa |
$194,900 |
32.3% |
| 44 |
Maryland |
$388,100 |
30.9% |
| 45 |
West Virginia |
$139,700 |
30.3% |
| 46 |
Illinois |
$241,700 |
30.1% |
| 47 |
Minnesota |
$309,500 |
29.5% |
| 48 |
Alaska |
$336,100 |
27.7% |
| 49 |
North Dakota |
$240,700 |
25.3% |
| 50 |
Louisiana |
$184,800 |
24.7% |
| 51 |
District of Columbia |
$638,400 |
10.5% |
|
United States (overall) |
$338,100 |
41.7% |
Top Five States
- Ranked first in three-year median home price appreciation was Florida, with a 62.3% increase. The Florida metropolitan area showing the greatest increase was Lake City (population 69,625) with 72.2%. Punta Gorda (population 184,837) boasted a 72% increase.
- Number two was Montana with a 60.7% increase in home value. The Missoula, Bozeman, and Butte-Silver Bow metropolitan areas led the way in the Big Sky state with 60.0% home appreciation.
- In the third position is Idaho with 58.5% home appreciation. Mountain Home metropolitan area led The Potato State with a 68.0% increase in home value.
- The fourth top state was Tennessee with 55.4% home appreciation. The Athens, Tennessee area was the top in the state with 63.7% growth.
- Arizona was the number five state in home appreciation during the pandemic time period with a 54.9% increase. The Tucson metropolitan area had the greatest in the state at a 65.2% rate of growth.
There are several factors that contributed to the increase in home prices in America during the pandemic. Some of these factors include:
- Limited supply: The pandemic caused a slowdown in home construction, which led to a shortage in housing supply. This scarcity of homes on the market drove up prices due to increased competition among buyers.
- Low-interest rates: The Federal Reserve lowered interest rates to help stimulate the economy during the pandemic. This made it cheaper to borrow money, which increased demand for homes and drove up prices.
- Remote work: As more people began working from home during the pandemic, many sought larger homes with more space for home offices and other amenities. This increased demand for single-family homes and drove up prices.
- Urban flight: The pandemic led to an increase in people leaving cities in search of more space, lower density, and a slower pace of life. This created an influx of buyers in suburban and rural areas, which drove up prices in those regions.
These factors, combined with a strong demand for housing, led to an increase in home prices during the pandemic. However, it's important to note that the housing market is constantly changing, and it's always a good idea to consult with a knowledgeable real estate professional before making any major decisions.
BestPlaces hopes you find this information useful, whether for your own relocation purposes or for investment opportunities.
About BestPlaces
Founded by author Bert Sperling over 30 years ago, BestPlaces helps Americans find their own best place to live. The site allows millions of monthly users to compare and track the cost of living between different locations by providing data on groceries, housing costs, transportation, and other expenses.