It’s harder and harder to make ends meet in this economy, and it’s not just the rent that is too damn high. Based on recent data from the Federal Housing Finance Agency, which regulates the federal lenders who support much of the residential housing market in the United States, average home prices across the U.S. rose 6.6 percent from the first quarter of 2023 to the first quarter of 2024.
According to Visual Capitalist, this represents the greatest increase we’ve seen since 2022. Experts attribute it to limited housing inventory and the unwillingness of existing homeowners to sell. (Doggedly high interest rates aren’t helping matters.)
While the average increase is 6.6 percent, the 10 states below are driving that up, with gains as much as 94 percent above the national average.
The 10 U.S. States Where Home Prices Rose the Most Between Q1 2023 and Q1 2024
- Vermont // 12.8 percent
- New Jersey // 11.6 percent
- New York // 10.9 percent
- Delaware // 10.7 percent
- Kansas // 9.9 percent
- Wisconsin // 9.9 percent
- Connecticut // 9.6 percent
- Illinois // 9.4 percent
- New Hampshire // 9.4 percent
- Maine // 9.1 percent
Vermont tops the list, with home prices growing 12.8 percent. While the Green Mountain State isn’t necessarily the first to come to mind as a housing hotbed, home inventory is lower than it’s been in over a decade, which likely has contributed to the rise in prices. Next come three Mid-Atlantic states—New Jersey, New York, and Delaware—each experiencing home price growth of over 10 percent, likely due to low inventory and buyers migrating outside major metropolitan areas, which are significantly more expensive.
At the other end of the spectrum, two of the hottest real estate markets in the wake of the COVID-19 pandemic—Florida and Texas—have begun to cool down, both falling below the national average. Visual Capitalist points out that over 25 percent of single-family building permits from 2019 to 2023 were from those states, producing an excess of new housing inventory.
So what does a person do to stretch their dollars when house hunting? LowerMyBills offers a few tips: First, look for vacant, inherited, or “for sale by owner” (FSBO) homes, as well as listings that have been on the market for a while, as these sellers may be open to negotiation. Another strategy is to look for short sales, foreclosures, or auctions, where lenders have more say in the selling price and may be willing to accept something closer to the outstanding amount on the existing loan rather than the “market value” of the property.
Whatever the strategy, it’s critical to understand the monthly costs associated with paying back a home loan. Sites like Zillow and Redfin offer mortgage calculators that help you determine what’s really in your price range. But it’s also important to remember the hidden costs of buying a home, which often include closing costs, taxes, insurance, and, where applicable, HOA fees.
[h/t Visual Capitalist]
