The housing market has seen many ups and downs over the past decade and now, as inflation and low mortgage rates begin to rise, homebuyers and renters are once again in a tough spot.
Although home prices are increasing across the board, prices have jumped in some markets much more than others. So, Point2 analyzed the evolution of single-family home prices in 187 U.S. markets and found which metros saw both the most and least significant changes in home prices over the last ten years.
Of the 59 largest metro areas, Phoenix-Mesa-Scottsdale saw one of the most impressive percentage gains in single-family home prices over the past decade with an almost 260% increase.
With recorded home prices in the Phoenix metro area jumping from $115,500 in 2011 to $415,400 in 2021, the market experienced a $299,900 net change in home prices over the last decade and a $75 net change per day.
Point2 suggests that the significant price growth in the Phoenix metro area is due to a low inventory of homes and a high demand now that millennials are reaching an age where they can afford to buy a home. A Time article also reveals that the area is one of the fastest-growing regions in the U.S., but the number of homes only grew by 11% in the last decade.
In addition to the Phoenix metro area, Tucson also saw a significant growth in home prices as it was among the 60 metros where single-family home prices increased by more than 100% between 2011 and 2021.
While single-family home prices increased significantly over the last decade, so did condo prices. Among the top 10 metro areas that saw the most significant increase in condo prices since 2011, the Phoenix-Mesa-Scottsdale came in fourth with a 290.29% increase. Condo prices increased from $65,900 in 2011 to $257,200 in 2021.
Click here to read the complete Point2 report on the 10-year evolution of single-family home prices in U.S. metro areas.
