Idaho and Utah Among Top 10 Housing Markets with Largest Price Increases Since 2012
When comparing housing price growth over the past decade, Idaho emerges as the top state in the nation with the highest increase in home prices since 2012. Other Western states, experiencing a housing price surge during the pandemic, also rank prominently. According to a recent ranking by the storage unit finder site, SelfStorage, which employed Zillow data to analyze state home prices, Idaho takes the lead with a remarkable 78.7% increase. This surge is based on Idaho's average home price, which leaped from approximately $152,221 between 2012 and 2016 to $272,019 from 2017 to 2022, marking a $119,798 increase.
Following closely behind, Nevada secures the second position with a 74.2% increase. The average home price in Nevada was $195,660 from 2012 to 2016, but it soared to $340,779 from 2017 to 2022, reflecting a $145,119 increase. Washington claims the third spot with a 64.9% increase, taking its average home price from $209,646 in 2012-2016 to $345,726 in 2017-2022, an increase of $136,080.
Utah takes fourth place with a 64.7% price increase. Utah's average home price was $240,880 between 2012 and 2016, but it surged to $396,824 between 2017 and 2022, resulting in a $155,944 price increase. Value-wise, Utah ranks as the third most expensive state on the list, trailing behind California and Colorado.
Here are the top 10 states with the highest home price increases since 2012:
Idaho: 78.7%
Nevada: 74.2%
Washington: 64.9%
Utah: 64.7%
Oregon: 61.2%
Arizona: 61.1%
Montana: 58.2%
Tennessee: 56.2%
California: 54.6%
Colorado: 54.4%
Utah stands out as a notable example, experiencing a nearly 50% increase in home prices during this period. However, as the era of pandemic-induced low mortgage interest rates gave way to rapid rate increases, driven by the Federal Reserve's efforts to control record inflation levels, the Western housing markets also felt the impact.
The escalation of mortgage interest rates, which now hover around 7%, triggered a divided real estate correction. While prices continued to rise in the East, many Western regions witnessed a decline in home prices. Boise, Idaho, was among the first cities to experience a year-over-year decrease in home values according to Zillow's Home Value Index. Fortune Magazine even ranked it as the top housing market with the most significant home price declines from June 2022 to June 2023, as per the Freddie Mac House Price Index. Two housing markets in Utah, Ogden and Provo, closely followed suit.
Nevertheless, Utah's home prices are gradually rebounding after a period of decline earlier in the year, illustrating resilience in the face of high interest rates, despite a slowdown in sales. Housing experts attribute this resilience to Utah's persistent housing shortage and limited market availability, factors that continue to exert upward pressure on prices.
For instance, in Salt Lake County, Utah's most populous county, the median single-family home price dropped to $582,500 in the second quarter of 2023, marking a 7% decline from $623,138 in the second quarter of 2022, according to the Salt Lake Board of Realtors. However, in July, Salt Lake County's median single-family home price rebounded to $610,000, representing a nearly 14% increase from the price low recorded in January at $535,700.
In summary, Idaho and Utah have emerged as leaders in the housing market, with substantial increases in home prices over the past decade. Despite recent challenges in the real estate landscape, both states exhibit resilience and unique factors contributing to their housing market dynamics.