Wed, 22 December 2021 | real estate
Homeowners in the US have earned $ 9.1 trillion in increased property values over the past year, as home prices continued to rise due to an acute shortage of real estate, according to a new report by Redfin (redfin.com). US home values rose 31.4% year on year to $ 38.3 trillion last month, well above the 9.7% year on year ($ 2.6 trillion) recorded in November last year. Housing prices rose sharply during the pandemic as mortgage rates hit record lows, teleworking and the skyrocketing stock market boosted demand for housing amid continuing housing shortages. November marked the 16th straight month of double-digit price increases as the number of homes for sale fell to an all-time low.
“The rise in property values during the pandemic has widened the gap between homeowners and tenants in America. Homeowners' wealth has improved significantly over the past year, while tenants have lost those income and are now trapped in rent inflation, ” according to Daryl Fairweather, chief economist at Redfin.
“On the other hand, property values have gone up not only in wealthy big cities. Homeowners in rural America who typically don't see significant increases in home values are also reaping the benefits of a booming real estate market. ”
The value of rural houses in November increased by 46.2% year-over-year to US$4.9 trillion. In contrast, the value of urban homes rose by 31.3% to US$8 trillion, while the value of suburban homes rose by 25.9% to US$24.1 trillion. As cities recover from the slowdown in coronavirus growth, rural areas are still more popular than before the pandemic, as remote workers continue to seek additional space and relative convenience.
Condominiums rose 42.7% year-over-year to $ 5.1 trillion in November. By comparison, the value of single-family homes increased 30.1% to $ 32 trillion, while the value of townhouses rose 20.6% to $ 1.2 trillion. The pandemic hit the condominium market hard in 2020, when dozens of Americans traded cramped city life and shared amenities for larger homes in the suburbs and rural areas. But when restrictions on isolation were eased and the initial shock of the pandemic died down, condominiums and city life began to return. This explains why the value of condominiums has increased significantly compared to last year.
Home values in Austin, Texas rose 48.1% year-over-year to $ 389.5 billion in November, the largest increase among the 50 most populous metropolitan areas in the United States. It is followed by Jacksonville, Florida (39.9%) and Phoenix, Arizona (38.3%). Tampa, Florida and Riverside, California completed the top five with growth of 36% and 32%, respectively. During the pandemic, home buyers flocked to the Sun Belt states as telecommuting allowed them to prioritize accessibility over proximity to the office. Austin, Phoenix and Tampa have consistently been some of the hottest spots for home buyers looking to relocate during the pandemic.
Source: Redfin.com