Since the beginning of the COVID-19 pandemic, home prices have been fluctuating nonstop. With many employees transitioning to remote work, people suddenly were able to move to different parts of the country, as they no longer had to worry about living near their office. Some opted to move out of major cities to the suburbs, and others chose to buy homes near beaches and in locales with warmer temperatures. Because of this, some U.S. home prices have skyrocketed, while others have been rapidly decreasing.
The team looked at data from the National Association of Realtors to see where home prices have increased and decreased the most in the past year. The study compares median home prices of single-family homes between the fourth quarter of 2021 and the fourth quarter of 2022 to determine where in the U.S. home prices are rising and falling the most. See which cities came out on top!
Which Cities Have the Fastest-Growing Home Prices?
Of all of the metro areas in the United States, Farmington, NM, has seen home prices increase the most (20.3% between the end of 2021 and 2022). This may seem like an unlikely city to top the list, but many California residents are moving to New Mexico to escape the high cost of living and tax rates.
Second on the list is the North Port-Sarasota-Bradenton area in Florida. Prices of homes there have increased by 19.5%. It’s not surprising that home prices have increased in this coastal region, as it is home to popular tourist destinations like Siesta Key. In fact, a recent study naming fastest-growing cities in Florida placed North Port in the number two spot.
The third area on the list is Naples-Immokalee-Marco Island, also located in Florida. Homes here have increased in price 17.2% between the end of 2021 and the end of 2022. In total, nine Florida cities are included in the top 20 areas where home prices are increasing the most.
- Farmington, New Mexico: 20.3%
- North Port-Sarasota-Bradenton, Florida: 19.5%
- Naples-Immokalee-Marco Island, Florida: 17.2%
- Greensboro-High Point, North Carolina: 17.0%
- Myrtle Beach-Conway-North Myrtle Beach, South Carolina and North Carolina: 16.2%
- Oshkosh-Neenah, Wisconsin: 16%
- Winston-Salem, North Carolina: 15.7%
- El Paso, Texas: 15.2%
- Punta Gorda, Florida: 15.2%
- Deltona-Daytona Beach-Ormond Beach, Florida: 14.5%
Cities With Home Prices That Are Decreasing the Fastest
On the other end of the spectrum, a number of cities have seen a decrease in home prices since the end of 2021. At the top of the list is the San Francisco, CA, metro area. Home prices in this area have decreased by 13.1%. San Francisco is known for having very high home prices, and during the pandemic, many residents chose to leave the area in favor of cities with a lower cost of living. Companies that offered remote work helped employees make that decision.
Next on the list is another California area known for its high cost of living: the San Jose-Sunnyvale-Santa Clara metropolitan area. Home prices here have decreased by 5.8%. San Jose is in Silicon Valley, which is known for attracting highly skilled tech employees and having incredibly high property values. Traffic is also a huge factor for those who work in Silicon Valley. As many employers and employees are leaving the Bay Area, home prices are starting to decrease to attract more buyers.
The third area on the list is the Cumberland, MD, metro area. It has seen a 4.1% decrease in home prices since the fourth quarter of 2021. Cumberland is located on the Potomac River and in the past has attracted many urbanites who resided in Baltimore or Washington, D.C. With a significant decrease in home prices, it may remain a great option for people looking to move somewhere with a cheaper cost of living.
- Oakland, California (-16.1%)
- Austin, Texas (-15.3%)
- Boise, Idaho (-15.1%)
- San Francisco, California (-13.4%)
- Salt Lake City, Utah (-10.9%)