Home Prices in This State Surged 30%

By Douglas A. McIntyre Published Jul 9, 9:12AM EDT

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Home Prices in This State Surged 30% — © kenlund / Flickr

Home prices in almost every major metropolitan area, many small cities and most states have risen sharply month over the same month last year. There are several contributing factors. The first is historically low mortgage rates. Despite forecasts of a jump in inflation that will drive higher interest rates, mortgage rates actually have fallen slightly in the past several weeks. Another contributor to high home prices is a large trend of relocation from America’s large and expensive coastal cities to ones that are more affordable. Working from home has made that more possible. Finally, the recession brought on by the COVID-19 pandemic did not substantially affect middle-class and upper-class incomes.

The widely followed Case-Shiller home index monthly report shows that home prices have increased in the double digits most months this year, compared with the same month a year ago. If anything, the trend has accelerated. Some of America’s inland cities have been at the top of price rises. In May, home prices in Phoenix rose 23.9% compared with May 2020. Denver is another example at 16.4% over the same period, based on the CoreLogic Home Price Insights for May.

The state with the most extraordinary surge in May was Idaho, at 30.3%. Real estate data and sales site Zillow came up with a similar figure for May:

The typical home value of homes in Idaho is $389,218. This value is seasonally adjusted and only includes the middle price tier of homes. Idaho home values have gone up 27.8% over the past year.

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Idaho would seem an improbable place for a run-up in housing prices. It is ranked 39th in total population among states at 1,839,106. Notably, however, it had the largest percentage increase among all states in population growth between 2010 and 2020, at 17.3%. It also has become what real estate agents call a “destination state” for people leaving California, the state with the largest population.

What is the future of home prices in Idaho? Not a bright one for some current residents. Local homeowner Nathan Eshleman told KTVB 7, “It was affordable when we first move and now it’s unattainable. To purchase a house in a Boise, it’s very difficult.”

Click here to find out which are the most expensive zip codes in 2021.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.