Since the COVID-19 pandemic turned the world upside down, real estate prices have been fluctuating non-stop. The Federal Reserve reports that house prices rose immensely during the pandemic, creating $9 trillion in owner-occupied housing wealth between the first quarter of 2020 and the first quarter of 2022. Inflation has reached its highest level in many decades both in housing and non-housing sectors. Many other factors beyond inflation have influenced the volatility of the housing market. With many people working from home indefinitely, they now have the freedom to move where they want. This has caused a mass abandonment of major cities as people seek a location that affords them a more ideal work-life balance. The pandemic has also influenced social values; in the face of mortality and colossal change, many no longer wish to waste time in places that are not fulfilling. So where are real estate values rising and dropping the fastest in the U.S.? The team at RealEstateAgents.com helps to answer these questions with this bold and informative visualization:
The place with the fastest-growing real estate prices is Farmington, New Mexico, which has experienced a growth of 20% from 2021 to 2022! I did some investigating and found that Farmington, New Mexico is among the most dangerous U.S. metro areas! I wonder if that will change because it is becoming a popular place to live? The fastest-dropping real estate values are in San Francisco, California, which has declined 6.10% from 2021 to 2022. Why are people leaving San Francisco? Overall, California’s population has been shrinking since the pandemic. ABC7 reports that the main reason people are leaving California is because they are seeking places that their money goes further. I can’t blame them!