Home price appreciation and depreciation is an important topic in today’s economy. Using data from the American Community Survey (ACS), we can analyze the gains and losses of property values over time. Looking at the 2005 – 2016 period, the figures point to trends, which vary by region and state. To summarize, price growth appears to be the strongest in the South and is weaker in the Northeast. Overall, all regions are displaying growth in property values with only a few states showing no growth or loses. Below is a breakdown of NAR’s four regions by state.
- In the Northeast where price growth is typically slow, Pennsylvania leads all states with a 40 percent price growth from 2005 to 2016, while average annual growth was 3 percent. Rhode Island had a negative 11 percent price change over this time and experienced negative 1 percent annual price change.
- In the Midwest where affordability is most favorable, North Dakota led all states with 106 percent price growth from 2005 to 2016 while having 6 percent average annual growth. Illinois had no price growth over this time and experienced no annual growth, on average.
- In the South which typically leads all regions in sales, Louisiana led all states with 57 percent price growth from 2005 to 2016 while having 4 percent average annual price growth. Florida experienced 3 percent price growth over this time and no growth annually, on average.
- In the West, the least affordable region, Montana led all states with 74 percent price growth from 2005 to 2016 while having a 5 percent average annual growth in price. Nevada shows a negative 16 percent price change over this time and shows a negative 1 percent average annual price change.