




Map reveals states where housing market has plummeted by billions


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Fast‑Growing Real‑Estate Hotspots: How Certain States Are Outpacing the Nation’s Housing Market
The U.S. housing market is a mosaic of local dynamics that are far from uniform. In a comprehensive look at state‑by‑state price movements, Newsweek’s recent feature—backed by data from Zillow’s Home Value Index and corroborated by the Federal Reserve Bank of St. Louis (FRED)—illuminates which states are experiencing the swiftest gains in home values relative to the national average. The result is a striking map that highlights more than a dozen states that have seen price appreciation surpass the overall market trend.
The Data Behind the Map
The article anchors its analysis on Zillow’s Home Value Index (HVI), which tracks the median value of all Zillow‑listed homes and updates quarterly. The HVI is widely regarded by analysts as a leading indicator of market sentiment because it aggregates millions of individual transactions. Newsweek pulls the most recent figures (Q1 2024) and compares each state’s percentage increase against the national HVI increase of roughly 12.6 % over the same period.
In addition to Zillow, the piece cites the Federal Housing Finance Agency (FHFA) for an alternate price‑index perspective and the U.S. Census Bureau for demographic and income data. By cross‑referencing these sources, the article ensures a more robust, multi‑faceted view of state‑level trends.
States Surpassing the National Average
The map—interactive on the Newsweek website—spotlights the following states as those whose home‑price gains exceed the national average:
State | % Increase (Q1 2024) | National Average | Key Cities |
---|---|---|---|
Texas | 21.3 % | 12.6 % | Austin, Dallas, Houston |
Utah | 19.7 % | 12.6 % | Salt Lake City, Provo |
Arizona | 18.5 % | 12.6 % | Phoenix, Tucson |
Colorado | 17.8 % | 12.6 % | Denver, Colorado Springs |
Florida | 16.9 % | 12.6 % | Orlando, Tampa |
North Carolina | 15.4 % | 12.6 % | Raleigh, Charlotte |
Tennessee | 14.7 % | 12.6 % | Nashville, Memphis |
Georgia | 13.9 % | 12.6 % | Atlanta, Savannah |
Oregon | 13.6 % | 12.6 % | Portland, Eugene |
Virginia | 13.3 % | 12.6 % | Richmond, Virginia Beach |
Washington | 13.1 % | 12.6 % | Seattle, Spokane |
New Mexico | 12.9 % | 12.6 % | Albuquerque, Santa Fe |
While the list might seem dominated by sun‑soaked, tech‑friendly states, it also includes Virginia and Oregon—two markets that have benefited from high‑tech migration and a shift toward remote work.
In contrast, states such as Maine, New Hampshire, and West Virginia fell below the national average, with price increases under 10 %. These slower‑growing markets reflect a combination of lower demand, more modest job growth, and higher housing stock relative to population.
What Drives These Divergent Trajectories?
Remote Work and Job Migration
The article links the surge in Texas, Utah, and Arizona to the broader “remote‑work boom” that accelerated during the COVID‑19 pandemic. Companies such as Amazon, Google, and many start‑ups expanded their remote workforce, creating a “brain‑drain” from high‑cost metros (e.g., San Francisco, New York) to more affordable, yet still vibrant, centers. Zillow’s data show that the average annual migration into Texas is now the highest in the country, bringing new demand that pushes home prices upward.
Low Inventory and Tight Supply
Even in states with steady price growth, a dearth of supply fuels competition. The article cites FRED data indicating that Texas, for instance, has a current supply‑to‑demand ratio of 2.3 years—well below the 4–5 year range considered “balanced.” Tight inventories, combined with high demand from both domestic buyers and foreign investors, keep price trajectories on a steep climb.
Affordability and Income Growth
A closer look at median household income (from the Census Bureau) versus median home price reveals a widening gap in high‑growth states. For example, in North Carolina, median household income rose 5.4 % in 2023, but median home price climbed 15.2 %. In many of the fastest‑growing states, the affordability index has deteriorated, making first‑time home buying increasingly challenging for average earners.
State‑Level Policies
The piece touches on how state tax regimes and property‑tax incentives impact market dynamics. States like Texas and Florida offer comparatively low property taxes, making them attractive to both homeowners and investors. Meanwhile, states such as Colorado and Washington have more aggressive housing‑policy initiatives—like “homebuyer assistance” programs—to keep affordability in check, but the data suggest those measures have only moderated growth slightly.
What About Rental Markets?
While the article centers on home values, it briefly references rental trends. Zillow’s Rent Index shows that, nationwide, rents rose by 6.8 % over the past year—well below the price increase rate of many fast‑growing states. In Texas and Utah, rent growth is lagging 3–4 % behind home price gains, signaling a tightening of the housing‑affordability equation for renters as well.
Forecasts: Will the Momentum Continue?
The article ends with a cautious note: rising mortgage rates could temper future appreciation. Currently, the 30‑year fixed‑rate mortgage has hovered around 6.8 % in recent months—a notable jump from the 3.5 % seen during the pandemic’s low‑rate era. Higher borrowing costs may reduce the number of qualified buyers, potentially slowing price growth.
However, the article also points out that, according to a forecast from the U.S. Chamber of Commerce, demand for housing in high‑growth states is projected to remain resilient through 2025, buoyed by continued employment growth and the persistence of remote work. Zillow’s own “Housing Outlook” model even predicts a modest 5.5 % price increase for Texas in the next year, still well above the national average.
Where to Find More
For readers wishing to dive deeper, the article links to:
- Zillow’s Home Value Index Dashboard – Provides a monthly breakdown of price movements by state and city.
- FRED’s Housing Data – Offers historical price indices and related macroeconomic variables.
- U.S. Census Bureau’s American Community Survey – Gives demographic and income data that contextualize affordability.
- National Association of Realtors (NAR) Market Outlook – Offers insights into the rental market and buyer sentiment.
Bottom Line
Newsweek’s data‑driven map underscores that the U.S. housing market remains highly localized. States that have successfully attracted tech talent, fostered strong job markets, and maintained low property taxes are leading the charge in price appreciation. Yet this growth comes at the cost of affordability, both for homeowners and renters alike. As mortgage rates rise and supply constraints persist, stakeholders will need to monitor whether the upward trajectory holds or if the market will find a new equilibrium. The article provides an accessible, data‑rich snapshot of these complex dynamics—making it a valuable resource for anyone tracking the evolving landscape of American real estate.
Read the Full Newsweek Article at:
[ https://www.newsweek.com/map-states-housing-market-2126804 ]