Originally published by REALTOR Magazine | October 27, 2020
A new study shows that home prices in the U.S. have increased by nearly 49% in the past 10 years.
Homeowners are watching their home values climb significantly this year, and prices are expected to continue to appreciate over the next decade. The National Association of REALTORS® reported that the median existing-home price for all housing types in September was $311,800—a 14.8% increase compared to a year ago.
But how high are prices poised to go over the next decade? A new study shows that home prices in the U.S. have increased by nearly 49% in the past 10 years. If they continue to climb at similar rates over the next decade, U.S. homes could average $382,000 by 2030, according to a new study from Renofi, a home renovation loan resource.
To estimate property prices in 2030, Renofi analyzed the average price in every state and the 50 largest cities, comparing them from September 2010 to September 2020.
They found that home values differ considerably across the country.
For example, in Nevada, home prices have more than doubled since 2010, surging nearly 106%. On the other hand, home prices in Connecticut have averaged a 1.12% increase in that period.
Renofi also projected what 2030 home prices will be in each state. California is predicted to have the highest prices over the next decade. The average home price could top $1 million if prices continue to increase at their current growth patterns, Renofi says in its study.