Nation's Hottest 6 Housing Markets During PandemicApr 30, 2021
- Home values jumped 15.4% in 2020 (3rd best among U.S. states, FHFA)
- Second-strongest job growth in Nation in 2020 (Labor Department data)
- Tax burden among lowest in Nation (Tax Foundation)
If you look back on Utah's housing market over the last several years, it's not a recent trend that has California residents packing up their bags for a more affordable market. Not only did Utah provide great prices and a scenic landscape, but west coast residents also got way more bang for their buck in regards to space after making the move for Utah's mountain metros. The silicon slope market was slowly getting hotter before the pandemic, and we're still seeing record growth even after all of the chaos of 2020.
Bankrate.com recently ran a housing heat index to gauge which markets performed the best during the pandemic. Utah came out with the nation’s strongest job growth pace, incredibly low unemployment, great mortgage rates, and low state/local taxes.
Utah ranked #1 on the Housing Index for Q4 2020 making the state a very attractive market for both residents and out-of-state investing.
- 15.5% Increase in home prices in 2020
- Nation’s lowest level of past-due mortgage payments (Mortgage Bankers Association)
- Nation’s lowest unemployment in December 2020 (3%)
- Home price appreciation was 12%
- Hottest home prices in the Nation (+21.1% in 2020)
- Strongest job growth in Nation
- Idaho’s overall ranking was average due to its cost of living/taxes
- Home prices have already increased 12.3% in 2021
- Tax burden: 9th lowest in Nation.
- Appreciation Rank: 4th
- Job Growth Rank: 8th
Bankrate's Housing Heat Index focused on six criteria to figure out how different states/metros performed throughout the pandemic. These include annual home appreciation, the share of mortgages past due, unemployment and job growth, cost of living, and state-by-state tax burdens. View the rest of the findings below...
"The prominent rankings of states in the Mountain time zone illustrate a shift in the housing market: Americans are still drawn to healthy labor markets, but even before the coronavirus pandemic, they were growing less willing to pay up to live in places like San Jose, Seattle, and Boston." - Bankrate
We now live in an age where an increasing number of jobs are able to be performed remotely. This has given homeowners a great deal of flexibility, especially in the tech sector, to leave pricier states for more affordable climates.
“We are seeing the makings of a renewed affordability migration. The beneficiaries of that shift have largely been the midsized metros in the mountain states of the West.” Mark Vitner, senior economist at Wells Fargo
What does this look like in reality? The median price for a single-family home in the Silicon Valley during Q4 2020 was $1.4 million!!! Compare this to Salt Lake County's average right now of $406,500 (NAOR). While even Salt Lake's average is slightly above the national median, it's nothing compared to Northern California.
Suddenly the concept of moving makes a lot of sense. Especially if you're able to work remotely. Workers can take their high-income jobs to an area with a drastically lower cost of living.
All Markets Ranked
|State||Overall rank||Appreciation rank||Past due rank||Job growth rank||Unemployment rank||Cost of living rank||Tax rank|
|District of Columbia||50||51||27||31||43||51||46|