Top 10 States where Home Prices are Increasing in 2024 (according to Zillow)
Video Transcript
Subscribe To Big Money in this video I’m going to talk about the top 10 states where home prices are surging the most in 2024 because you guys out there as buyers and investors you need to understand if prices are continuing to go up in your area and defy the odds even with higher mortgage rates everyone we’re seeing these prices continue to go up in certain parts of America really it’s about half of the states in the US right now that are driving home prices higher starting with our number 10 state with the fastest appreciating home prices right now values in this state have gone up 6.3% over the last year according to data from Zillow where are we talking about that would be New York home prices in New York state continue to rise despite 7% mortgage rates and despite the fact that many people have left New York over the last couple years with New York losing 143,000 people in 2023 you can see that this was one of New York’s biggest migration losses in terms of population over the last 30 years although it was an improvement over the losses in 2021 and 2022 during the pandemic now you guys might be saying well wait a minute if New York is losing so many people how is it that home prices are continuing to go up well the answer to that question has everything to do with low inventory with the inventory of homes for sale on the New York housing market still resting about 30% below the long-term average so even though lots of people are leaving New York it’s not enough people to put no more new listings on the market with this low inventory causing home prices in New York to continue to go up the source of frustration for many of you home buyers out there in New York as well as our number nine state where home prices are still surging in 20124 and I got to say folks this state really surprised me like I thought by now home prices would really be crashing here but no so far they’ve continued to go up appreciating by 6.3% over the last year in California with the typical value of a house in California increasing from 736 th000 in March 2023 to 783 th000 in March 2024 making California the most expensive state to buy a house in America with California’s typical home value almost 20% higher than DC in Massachusetts at number two and three and I think the fundamental issue that keeps pushing prices higher in California is a lack of home building with California as a state only pulling 109,000 building permits over the last 12 months you can see that this building permit number is actually lower than it was a couple years ago before the housing boom and is half of what the peak was in ‘ 056 at the peak of the last bubble before the big crash and so California is just not building very very much and there’s a variety of reasons for that you know there’s not a lot of room to build in a place like San Diego there’s also restrictive zoning laws in California and additionally home builders and developers they don’t really want to go to California because it’s an unfriendly ly uh business environment to build there’s lots of permit fees there’s lot lots of impact fees there’s heavy environmental regulation and thus all of those things are pushing down new construction and withholding inventory from the market which is causing prices to continue to rise despite the huge lack of affordability first let’s talk about our number eight housing market where prices are continuing to rise in 2024 this one I think is shocking to a lot of people because if I told you hey folks this housing market appreciated by 7% over the last year and is beating places like Florida and Texas you’d say no way however home prices in Illinois spiked by 7% over the last year from 240,000 up to 257,000 and like New York Illinois is a state where lots of people are leaving like Illinois is hemorrhaging people every single year especially since the pandemic and actually going back the last three decades where you can see literally Illinois has lost population every year due to migration going back to 1991 and this population loss got especially severe in 2022 when 110,000 people left the state and then in 2023 it improved only 43,000 people left the state which is not as many but still is a pretty heavy loss compared to most other areas and so again we have the situation where people are fleeing Illinois maybe because the weather is cold and the taxes are high and they want to go someplace warmer and more business friendly yet the housing market keeps going up particularly everyone in the suburbs around Chicago we’re looking at the Chicago Metro here and you can see actually if we zoom in prices are going down in the center of Chicago on the south side of Chicago but then boy are they going up on the western side and some of these wealthy suburbs to the West as well as some of these suburbs up to the north prices going up as much as 133% year-over-year and the reason that these prices in Chicago and Illinois more broadly are going up is again a lack of inventory there is a legitimate shortage of homes for sale in Illinois right now with the state only having 14,800 homes on the market in active listings that’s down about 50% from the long-term norms and it continues to go down there’s been no bounceback in inventory in Illinois since the FED hiked interest rates 2 years ago and so long as this inventory stays here prices will keep going up and one thing I I’m seeing out there in the housing market everyone is I read these news articles talking about home prices continuing to go up is I think what a lot of prognosticators are doing is looking at the broader appreciation in the US which is being driven by the states on this list and thinking that this is some type of signal of what every Market in America is experiencing and it’s very important for you guys to remember that that’s not the case right so while these states are seeing higher home prices and sometimes buy a lot there’s other states and other cities in America where home prices are going down particularly in some of those Sun Bel boom towns right now in States like Florida and Texas so if you live in Florida and Texas it’s a different ball game like in Texas prices only Rose 0.5% over the last year so in Texas the home value growth has really flatlined and is soon going to be in negative territory across the state in fact it’s already well into negative territory in Colleen and Austin and San Antonio and a bunch of places near the border and so this speaks to how important it is for you as a home buyer to do the research on what’s happening in your state city and zip Cod you have to do that so you can make a more informed decision because you do not want to buy a house in this housing market in 2024 uh whether it’s for 300,000 or $600,000 or a million dollars you do not want to make the biggest financial decision in your life without truly understanding the trends and what I would suggest you guys do is go to ww. reventure doapp and just search your city or zip code and start digging into those inventory figures in your area but now folks our number seven state where home prices are going up right now is another really interesting one it’s in the midwest it’s actually Ohio where prices in Ohio are up 7.1% over the last year and are up especially in Cleveland Toledo and the areas in and around Columbus and I got to say everyone I’m actually kind of getting a little bullish on Ohio like I’m not ready to say you should buy an Ohio because I still think prices are too high compared to what they were before but we’re actually starting to see some really positive demographic Trends in the state of Ohio namely we’re starting to see people move in with the migration total in the state of Ohio surging to a record in back-to-back years so in 2022 we had 15,000 net people moved to Ohio in 2023 we had 29,000 net people moved to Ohio this was the two best years for inbound migration into Ohio going all the way back to 1991 so you can see for most of the last 30 years Ohio lost people well now we’re on the positive side of The Ledger Ohio is adding people and the reason Ohio is adding people is because it’s uh cheaper and more affordable than most other parts of America so you as a a home buyer you can go into the Ohio market if you’re coming from Illinois or if you’re coming from New York and you will find cheaper homes than where you’re coming from and I think that is driving a lot of the growth as you can see the typical home value in the state of Ohio is still only 223,000 making it the eighth cheapest housing market in America like if you go to Cincinnati you could buy a four bed two bath house 2,000 square ft it looks pretty nice on the inside everyone pretty classic house with actually a newly renovated kitchen you can get a house like that for 260 Grand with a monthly payment of 1,800 a month a price point in payment which might look high to local residents from Ohio but is significantly cheaper than where a lot of people are coming from and ultimately I think affordability is going to rule the day um in the 2024 housing market and Beyond the states and the cities that are truly still a affordable like where prices are well below the national median I think they’re going to continue to outperform because you know people in those cities and states they can still qualify for mortgages and the people coming into those cities and states still feel like it’s a good deal however I’m a bit more skeptical of our number six housing market where home prices continue to appreciate this is one where values have kind of surged out of control over the last three or four years and I don’t necessarily think the fundamentals are there to justify it in Maine is in Maine home prices are up 8.3% over the last year with a typical value going from just like 180 190,000 7 years ago to 392,000 today so values in Maine have doubled over the last 6 to S years making Maine like no longer an affordable Market particularly in Portland everyone Portland Maine a typical value of a house is now over 500 Grand which for perspective that’s more than Nashville Austin and Phoenix so does Portland Maine deserve to be more highly priced than Nashville Austin and Phoenix well I don’t really think so everyone Portland to me is more of like a vacation bedroom Market that gets lots of people from Boston and maybe even New York who want a weekend home up there you can see actually 20% of the homes in Maine are what’s called Shadow inventory their absentee owned unit the people only live in on a part-time basis so there’s actually lots of vacant Shadow inventory in Maine the shadow inventory levels there are actually the highest in America now folks are you ready for the rest of this list the top five states where home prices are continuing to Surge in 2024 I think a bunch of these states are really going to surprise you in terms of how much prices are going up particular if you live in our number five area where prices are still appreciating values have gone up 8.3% here over the last year where would I be talking about that’s Rhode Island Rhode Island is situated in the North Feast us between Massachusetts and Connecticut and you can see the price appreciation is actually starting to re accelerate in Rhode Island it went down to 4.9% a year ago now it’s up to 88.5% and Rhode Island is basically you getting invaded right now in terms of its housing market by people coming down from Massachusetts you know this is essentially like what drives Rhode Island’s housing market there’s not a ton of local demand there but there’s lots of people from Boston that come down and you know buy a house and commute back into the city in Boston or maybe they work remote and can live in Rhode Island full-time well they go to Providence and they come to Providence because prices even though they’ve gone up here in Providence are still about 30% cheaper than Boston now one thing I ask myself is are these states and cities that are relying on continued inbound migration you know are these states and cities going to keep that up you know especially kind of this pandemic driven migration out of the big cities like Boston New York and DC into the surrounding suburbs and areas clearly that’s still happening to a certain extent but I do wonder if at some point it’s going to slow down like how many people are there in Boston and New York and Washington DC that are just willing to move an hour away to buy a house in a neighboring state or County I think at some point we’re going to see a reduction in that inbound migration and when that happens is when some of these housing markets might begin to slow one market that is showing absolutely no signs of slowing right now is our number four state where prices continue to rise in this area values are up 8.6% over the last year due to a complete collapse in inventory as you can see in New Hampshire our number four state where prices are going up the inventory on the market is only 1,400 homes which is up slightly from its low 2 years ago but is still about % below the long-term average which suggests that prices will continue to go up according to the reventure app home price forecast score it ranks New Hampshire as a 61 out of 100 with one of the big reasons being this inventory shortage you can see next to New Hampshire everyone is another state with a big inventory shortage Massachusetts which is actually our number three housing market where prices are growing the fastest you can see Massachusetts prices are up a hefty 88.7% year-over-year making 2024 the third best appreciation year for Massachusetts going all the way back to 2004 2005 and so we’re seeing levels of price growth here across mass that we have not seen outside of the pandemic in decades this price growth is especially Hefty in Boston as well as Worcester where prices are up 99.7% over the last year and Massachusetts is another state like California which suffers from an acute shortage of housing due to a lack of building the building permits in Massachusetts they don’t really get pulled They Don’t Really Happen the builders and the developers they’re not active there because despite the fact that there’s actually lots of land in Massachusetts like as soon as you get about 30 minutes outside of Boston you see you know there’s lots of land the builders don’t really build there because the local zoning and the local regulations makes it very difficult to build with the building permit rate in Massachusetts ranking as the eighth lowest in America America at 0.2% which calculates building permits divided by population you can see that in a state like Idaho North Carolina Florida or South Dakota they build roughly four times as much on a relative basis than Massachusetts and so when those building levels are so low it’s going to be hard for inventory to increase I mean what it’s going to actually take for inventory to go up in Massachusetts or California or some of the other states on this list is a recession like that’s the one thing that really at this point would release more inventory onto the market is we see some type of recession occur you know not just kind of the tangential downturns we’ve seen in certain industries so far like Tech but an actual recession where the unemployment rate doubles um and the mortgage default Spike that’s unfortunately what it’s going to take at this point in some of these states to release and unlock the inventory and new listings needed to bring prices down especially in our top two states where home prices are continuing to go up everyone these two states are kind of A Cut Above all the other states on this list in terms of their appreciation and I think a lot of people are like scratching their head about how these states could be the two hottest housing markets in America right now starting with number two New Jersey where prices are up 99.4% over the last year this surge in appreciation has pushed the typical value of a house in New Jersey up to $512,000 making New Jersey the seventh most expensive state to buy a house in nominal terms and even higher than that when you consider your house house payment inclusive of property taxes undoubtedly New Jersey is getting overrun right now by a lot of people leaving New York City the exitus from New York City in terms of wealthy homeowners and home buyers that is continuing into 2024 which is something that’s continuing to suppress inventory on the New Jersey housing market with the number of homes for sale in New Jersey down to 11,500 in March 2024 which is down 75% from its levels 5 years ago and probably the number one comment I think I get in the comment section uh when I do my uh more like housing crash related videos and talk about the cities where prices are dropping is people from New Jersey I see you guys in the comment section all the time and you say not in New Jersey that’s not happening in New Jersey I’m still seeing bidding wars in New Jersey and yeah you guys are right the data totally backs up what you’re saying we’re going to have to see more lisings in inventory in New Jersey before prices will soften and a similar case in our number one housing market where prices are continuing to go up this state has registered a massive 11.4% appreciation rate over the last year it’s the only state to be in double digits on appreciation which is a miraculous achievement given that mortgage rates are over 7% which is making Connecticut the hottest housing market in America today and what I would suggest you guys do if you’re a home buyer and investor trying to make sense of this housing market and trying to understand where home prices are going to head in the future is go to ww. reventure doapp right now now and just search your city or zip code and start digging into those inventory figures in your area so you can understand whether there’s a shortage of homes for sale or whether there’s a surplus because that’s going to really help influence where prices head in the future and really to to get to the next level on that analysis you’re going to want to look at the data point inventory Surplus or deficit which gives you a colorcoded view where there’s lots of Sellers and a bigger likelihood of price is dropping versus where there’s more of a shortage and a bigger likelihood of price is increasing understanding that knowledge it’s going to really help you as a buyer and to access it sign up for a monthly pass on reventure app for $39 a month it’s going to get you access to over 30 premium data points on the housing market including that inventory Surplus deficit metric as well as the reventure home price forecast score for every zip code in America so you can see in one metric whether it’s more likely that prices go up or go down so Empower yourself as a home buyer investor so you can make a more informed decision buying a house it’s the biggest Financial commitment of your life you don’t want to do that without understanding the truth Trends in the market so you can make a better more informed decisionHow Big Money Invests In Real Estate
Solving Common Challenges
Investing in real estate is a proven strategy for wealth generation. Yet, it is not without its challenges, especially for those new to the field or without the vast resources of big-money investors. Ever wondered how the big players overcome these obstacles and consistently succeed? Let’s dive into two common problems in real estate investing and explore effective solutions to tackle them.
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Comments (34)
The rulebook on Housing Market is changing.
Population growth / migration / jobs are no longer strongly correlated to home price appreciation. As you can see by looking at the states on this list.
Rather – it's affordability, overvaluation, and inventory that's driving the bus on prices now. And will likely continue to do so over the next 2-3 years.
If you're a homebuyer or investor looking to make a more educated decision in 2024 and beyond, head to http://www.reventure.app so you can project the market and the find areas where prices are most likely to increase (or go down).
The data points you want to pay attention to most are the: Overvaluation %, Home Price Forecast, and Inventory trends.
-Nick
I’m a new dad, I moved to the Bay Area a few years ago and I’m thinking of purchasing a single family home, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
you make videos about how ca is a rip off and people are leaving, yet prices keep going up. I don't think you realize how big of a deal chinese and indian immigration is here and how it impacts our market. You've got two 1+ billion countries, sending their top 5% richest people to america, all of which want to live in cali.
Curious: you divide building permits by population so it is per capita, but you don't divide housing inventory by population. You must have a reason I don't see.IMHO, this distorts the figure and make various indices harder to compare.
Adding to the California housing shortage is the time delay to start construction. Note that if you ask for a 5% return on each house, that’s not much, however if that money is used multiple times per year now you have something. When the government delays the project the rate of return for each house has to go significantly higher all other things being equal, which of course they are not.
Not true home prices in these states are not raising.
Ohhhh drama queen 🫅 there’s price surge now with all the calamity drama queen has been predicting forever
Are you surprised ? All Biden's imigrants to US need to live somewere. The same story like Ukraine rich imigrants are spiking house prices in Middle amd Easter European cities to the moon even recession in Europe and high rates.
The first 3 stats CA,NY, IL are states where big institutions are buying . Blackrock and similar corporations are making the market have false numbers.
I recently sold a property in Portland and am considering investing the proceeds in stocks. While many people are saying the market is ripe for investment, I'm unsure if it's the right time to buy stocks. How long until a full recovery? How are others in the same market achieving gains of over $450k within months? I'm feeling quite confused.
Nick, N.J. is intense; it is so densely populated, which makes people crazy & overly competitive to pick up what little inventory there is. Additionally, parents & grandparents will pull cash out of mattresses & elsewhere to help the younger generations buy something. Also, many of the old school recent immigrants pool together & bring cash in order to buy something.
I am so happy that i made a productive decision about my finances that changed my life forever. I am a single mother and i live in Florida, i bought my first house in September and i hope to retire next year at 40 if all goes well. Thanks to Mrs Elizabeth Messer for helping me achieve this.
Housing prices are unlikely to significantly decrease until there's a substantial increase in housing supply. In the USA , there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2024 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable , but others say it's risky. Any advice?
Glad I invested in Seattle and Cleveland 5 years ago. 😊
I own a RE Brokerage in NH, MA, ME & VT and our market has been out of control. The increase of rates has only made our market worse cause no one wants to sell when they have a 2.8% rate and trade it for a 7% rate with the cost of prices. We need inventory like we need oxygen and the rates have not stopped buyers from wanting to become home owners. I'm not sure if we will ever see a decline but man I hope it eventually comes. The poor buyers are taking on outrageous mortgages to become home owners and overall it's not good for anyone the way we have been plugging along. Thanks for the video. Great content!
Accurate description of the Maine housing market.
Love this channel, thank you
DUDE I Loved the video!❤
Can you the top states where no one is buying
The only reason I'm watching your videos is because I want to know how the poor thinking
I bought a house in the town just north of Portland, ME in 2018. We have put some work into it, but we are approaching 3x appreciation. We purchased for under $400k and there are similar houses going for over $1m.
Also, I think that the "shadow" inventory here in Maine is mostly due the fact that there are tons of small, formerly affordable, vacation houses up north and tons of lakes in mostly unlivable areas due to pretty much nothing going on around them other than the summer tourist season.
Have you considered including in your data base housing trends from foreign markets which are popular among americans such as the tourist destinations in Mexico?
Each video is all over the board. You say one thing one week and the opposite the next week
He's been wrong about home prices since he started this channel predicting a crash all the time. So buy access to his App which predicts home prices…
So is he saying that he was wrong, yet again, screaming about a crash just around the corner, while waving his hands, yet in reality, home prices keep going up.
18.4% of U.S. single-family homes that sold in the first quarter were purchased by investors—the highest share since mid-2022, per Redfin.
This guy was preaching a crash for the last 4 years and now conveniently pivots. So full of 💩😅. If you give this sham your money, you are as dumb as a rock!!
That moment when you realize you're warning an ad
Hey man, I thought you said the housing market going to crash, actually for the past 4 years. Don’t you get tired of being wrong all the time.
😂Please continue listening to these YOUTUBE home made analysts, you guys are gonna un alive yourself in your moms basement and get mugged on the 2 line railway!
Illinois is surprising it's not even higher. Chicago is a boomtown right now, I bet we will see positive growth into chicago for years to come. One of the most affordable big cities
Check Bentonville, Arkansas, home of the Walmart headquarters. Since Walmart announced they are closing all their offices and moving everyone to Bentonville, it's been crazy.
After I raised up to 125k trading with Elizabeth R Nelsen I bought a new House and a car here in the states also paid for my son's surgery Glory to God shalom.
laughable bullshit