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Mapped: The Growth in U.S. House Prices by State

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Growth in US home price by state Part 1 of 3
Growth in US home price by state 2 of 3
Historical Mortgage Rates vs Housing Prices Part 3 of 3

How to use: Arrows on side of slides navigate between 1-year growth, 5-year growth, and growth since 1991.

U.S. map with states colored according to the growth in house prices from Q1 2021 to Q1 2022. Florida had the highest growth.
U.S. map with states colored according to the growth in house prices from Q1 2017 to Q1 2022. Idaho had the highest growth.
U.S. map with states colored according to the growth in house prices from Q1 1991 to Q1 2022. Utah had the highest growth.
House_Prices_1_Year_Growth
House_Prices_5_Year_Growth
House_Prices Growth Since 1991
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U.S. map with states colored according to the growth in house prices from Q1 2021 to Q1 2022.

This infographic is available as a poster.

The Growth in U.S. House Prices by State

On average, the U.S. housing market has seen price appreciation of 4.4% annually since 1991. High demand and low supply have accelerated price growth during the COVID-19 pandemic. In fact, single-family house prices grew by 18.7% from the first quarter of 2021 to the first quarter of 2022—the highest growth seen in at least 31 years.

This Markets in a Minute from New York Life Investments, the first in a three-part series on house prices, shows how house price growth has differed by state over various timeframes.

How Is House Price Growth Measured?

We used data from the Federal Housing Finance Agency’s (FHFA) House Price Index. The index measures changes in single-family home values and is seasonally adjusted. It is also a repeat-sales index, meaning it measures average price changes in repeat sales on the same properties.

FHFA obtains this information by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac.

Short and Long-Term Growth in House Prices

The below table shows house price growth over the last year, last five years, and since the first quarter of 1991. It should be noted that the growth measures up to March 2022, based on the latest available data. As of March 2022, higher mortgage rates had not yet translated into slower price growth.

State/District1-Year Rank 1-Year Growth
5-Year Growth
Growth Since Q1 1991
Florida129.8%81.5%389.1%
Arizona227.5%91.4%433.6%
Utah326.8%99.6%599.2%
Tennessee425.8%79.7%316.6%
Idaho525.5%121.6%509.2%
Montana625.2%77.1%532.5%
Nevada725.0%83.1%293.8%
North Carolina823.4%72.8%268.4%
Hawaii922.8%59.2%257.8%
South Carolina1022.7%67.0%263.0%
Georgia1122.1%70.7%261.2%
Maine1222.0%71.5%287.5%
Washington1321.8%83.1%466.4%
Colorado1421.6%70.6%578.6%
New Hampshire1521.2%66.7%285.3%
California1620.0%63.1%310.8%
Texas1719.8%58.7%310.6%
Alabama1819.7%58.6%218.5%
Arkansas1919.2%51.2%207.5%
South Dakota2018.3%56.7%326.8%
Vermont2118.1%50.8%238.9%
Oregon2218.0%63.1%514.3%
Oklahoma2317.6%47.3%232.1%
Wyoming2416.9%47.2%371.4%
Kentucky2516.8%52.2%232.7%
Mississippi2616.7%41.6%176.9%
Rhode Island2716.7%61.2%236.1%
Missouri2816.5%57.3%236.1%
Kansas2916.3%52.6%239.3%
Michigan3016.1%59.5%220.8%
Indiana3115.7%61.0%200.9%
Ohio3215.3%57.8%186.0%
Wisconsin3315.2%55.1%261.8%
Virginia3415.1%49.9%253.8%
New Jersey3515.1%50.8%231.0%
New Mexico3615.0%52.1%242.8%
West Virginia3714.8%38.3%181.7%
Massachusetts3814.8%54.8%300.1%
Nebraska3914.6%53.8%264.9%
Pennsylvania4014.5%49.4%208.6%
New York4114.4%50.3%233.1%
Connecticut4213.5%43.9%137.1%
Maryland4313.1%40.6%229.0%
Delaware4413.0%47.6%182.7%
Illinois4513.0%35.3%159.0%
Minnesota4612.7%48.5%284.8%
Iowa4712.5%38.1%215.5%
Louisiana4812.3%31.5%248.1%
Alaska4910.5%29.1%222.4%
North Dakota5010.4%26.2%280.6%
D.C.516.6%34.8%555.6%

Over the last year, the growth in prices was highest in Florida. Close to a thousand people move to Florida every day, and some snowbirds have decided to make Florida their permanent home.

Arizona follows closely behind, with one-year house price growth reaching 27.5%. Houses are not being built fast enough to meet demand. While Phoenix and the surrounding areas have plenty of single-family homes, there is little high-density housing due to zoning restrictions.

If we take a longer view, house prices have grown the fastest in the West since 1991. Utah saw the highest growth of 599.2%. The state’s population has gotten three times larger over the last 50 years, due to both migration and a high fertility rate. Some are drawn by high tech opportunities that earned the state the nickname “Silicon Slopes”.

Of course, the above data has limitations in that it is across entire states. The FHFA also shares the metro areas with the highest house price growth over the last year. In line with state growth, the top four areas are all in Florida. However, number five on the list is Knoxville, Tennessee. The price growth is partly due to a supply shortage. Knox County had 1,332 active listings in 2019, and just 324 listings by the end of 2021.

The Factors Driving the Growth in House Prices

While home price growth has accelerated during the COVID-19 pandemic, the supply-demand imbalance has been building over time.

The U.S. built 276,000 fewer homes annually between 2000-2020 compared to the 30 years prior. Zoning restrictions in some areas have also limited the number of housing units that can be built on a parcel of land. Since the 2008 global financial crisis, roughly 64% of all authorized housing has been single-family homes. Ultimately, the lack of housing has helped drive up prices.

The magnitude of the price gain depends on where a homeowner had purchased. Historically, the growth in real estate prices has been highest in areas with strong job prospects, high population growth, and low housing supply.

In the second part of the house price series, we’ll explore the relationship between house prices and inflation.

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Markets in a Minute

The Average American’s Financial Portfolio by Account Type

From retirement plans to bank accounts, we show the percentage of an American’s financial portfolio that is typically held in each account.

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The Average American’s Financial Portfolio by Account Type

Where does the average American put their money? From retirement plans to banks, the typical financial portfolio includes a variety of accounts.

In this graphic from Morningstar, we explore what percentage of a person’s money is typically held within each account.

Breaking Down a Typical Financial Portfolio

People put the most money in employer retirement plans, which make up nearly two-fifths of the average financial portfolio. Bank accounts, which include checking, savings, and CDs, hold the second-largest percentage of people’s money.

Account Type% of Financial Portfolio
Employer retirement plan38%
Bank account23%
Brokerage/investment account14%
Traditional IRA10%
Roth IRA7%
Crypto wallet/account4%
Education savings account3%
Other1%

Source: Morningstar Voice of the Investor Report 2024, based on 1,261 U.S. respondents.

Outside of employer retirement plans and bank accounts, the average American keeps nearly 40% of their money in accounts that advisors typically help manage. For instance, people also hold a large portion of their assets in investment accounts and IRAs.

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Account Insight for Advisors

Given the large focus on retirement accounts in financial portfolios, advisors can clearly communicate how they will help investors achieve their retirement goals. Notably, Americans say that funding retirement accounts is a top financial goal in the next three years (39% of people), second only to reducing debt (40%).

Americans also say that building an emergency fund is one of their financial goals (35%), which can be supported by the money they hold in bank accounts. However, it can be helpful for advisors to educate clients on the lower return potential of savings accounts and CDs. In comparison, advisors can highlight that investment or retirement accounts can hold assets with more potential for building wealth, like mutual funds or ETFs. With this knowledge in mind, clients will be better able to balance short-term and long-term financial goals.

The survey results also highlight the importance of advisors staying up to date on emerging trends and products. People hold 4% of their money in crypto accounts on average, and nearly a quarter of people said they hold crypto assets like bitcoin. Advisors who educate themselves on these assets can more effectively answer investors’ questions.

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5 Factors Linked to Higher Investor Engagement

Engaged investors review their goals often and are more involved in decisions, but which factors are tied to higher investor engagement?

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Partial bar chart showing the factors linked to higher investor engagement along with a picture of a man looking at a cell phone.

5 Factors Linked to Higher Investor Engagement

Imagine two investors. One investor reviews their investment goals every quarter and actively makes decisions. The second investor hasn’t reviewed their goals in over a year and doesn’t take part in any investment decisions. Are there traits that the first, more involved investor would be more likely to have?

In this graphic from Morningstar, we explore five factors that are associated with high investor engagement.

Influences on Investor Engagement

Morningstar scores their Investor Engagement Index from a low of zero to a high of 100, which indicates full engagement. In their survey, they discovered five traits that are tied to higher average engagement levels among investors.

FactorInvestor Engagement Index Score (Max = 100)
Financial advisor relationshipDon’t work with financial advisor: 63
Work with financial advisor: 70
Sustainability alignmentNo actions/alignment: 63
Some/full alignment: 74
Trust in AILow trust: 61
High trust: 74
Risk toleranceConservative: 62
Aggressive: 76
Comfort making investment decisionsLow comfort: 42
High comfort: 76

Morningstar’s Investor Engagement Index is equally weighted based on retail investors’ responses to seven questions: feeling informed about composition and performance of investments, frequency of investment portfolio review, involvement in investment decision-making, understanding of investment concepts and financial markets, frequency of goals review, clarity of investment strategy aligning to long-term goals, and frequency of engagement in financial education activities.

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On average, people who work with financial advisors, have sustainability alignment, trust AI, and have a high risk tolerance are more engaged.

The starkest contrast was that people with high comfort making investment decisions have engagement levels that are nearly two times higher than those with low comfort. In fact, people with a high comfort level were significantly more likely to say they were knowledgeable about the composition and performance of their investments (84%) vs. those with low comfort (18%).

Personalizing Experiences Based on Engagement

Advisors can consider adjusting their approach depending on an investor’s engagement level. For example, if a client has an aggressive risk tolerance this may indicate the client is more engaged. Based on this, the advisor could check if the client would prefer more frequent portfolio reviews.

On the other hand, soft skills can play a key role for those who are less engaged. People with low comfort making investment decisions indicated that the top ways their financial advisor provides value is through optimizing for growth and risk management (62%), making them feel more secure about their financial future (38%), and offering peace of mind and relief from the stress of money management (30%).

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