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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

How Small Investments Make a Big Impact Over Time

Compound interest is a powerful force in building wealth. Here’s how it impacts even the most modest portfolio over the long-term.

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This bar chart shows the power of compound interest and regular contributions over time.

How Small Investments Make a Big Impact Over Time

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Time is an investor’s biggest ally, even if they start with just a modest portfolio.

The reason behind this is compounding interest, of course, thanks to its ability to magnify returns as interest earns interest on itself. With a fortune of $159 billion, Warren Buffett largely credits compound interest as a vital ingredient to his success—describing it like a snowball collecting snow as it rolls down a very long hill.

This graphic shows how compound interest can dramatically impact the value of an investor’s portfolio over longer periods of time, based on data from Investor.gov.

Why Compound Interest is a Powerful Force

Below, we show how investing $100 each month, with a 10% annual return starting at the age of 25 can generate outsized returns by simply staying the course:

AgeTotal ContributionsInterestPortfolio Value
25$1,300$10$1,310
30$7,300$2,136$9,436
35$13,300$9,223$22,523
40$19,300$24,299$43,599
45$25,300$52,243$77,543
50$31,300$100,910$132,210
55$37,300$182,952$220,252
60$43,300$318,743$362,043
65$49,300$541,101$590,401
70$55,300$902,872$958,172
75$61,300$1,489,172$1,550,472

Portfolio value is at end of each time period. All time periods are five years except for the first year (Age 25) which includes a $100 initial contribution. Interest is computed annually.

As we can see, the portfolio grows at a relatively slow pace over the first five years.

But as the portfolio continues to grow, the interest earned begins to exceed the contributions in under 15 years. That’s because interest is earned not only on the total contributions but on the accumulated interest itself. So by the age of 40, the total contributions are valued at $19,300 while the interest earned soars to $24,299.

Not only that, the interest earned soars to double the value of the investor’s contributions over the next five years—reaching $52,243 compared to the $25,300 in principal.

By the time the investor is 75, the power of compound interest becomes even more eye-opening. While the investor’s lifetime contributions totaled $61,300, the interest earned ballooned to 25 times that value, reaching $1,489,172.

In this way, it shows that investing consistently over time can benefit investors who stick it through stock market ups and downs.

The Two Key Ingredients to Growing Money

Generally speaking, building wealth involves two key pillars: time and rate of return.

Below, we show how these key factors can impact portfolios based on varying time horizons using a hypothetical example. Importantly, just a small difference in returns can make a huge impact on a portfolio’s end value:

Annual ReturnPortfolio Value
25 Year Investment Horizon
Portfolio Value
75 Year Investment Horizon
5%$57,611$911,868
8%$88,412$4,835,188
12%$161,701$49,611,684

With this in mind, it’s important to take into account investment fees which can erode the value of your investments.

Even the difference of 1% in investment fees adds up over time, especially over the long run. Say an investor paid 1% in fees, and had an after-fee return of 9%. If they had a $100 starting investment, contributed monthly over a 25-year time span, their portfolio would be worth over $102,000 at the end of the period.

By comparison, a 10% return would have made over $119,000. In other words, they lost roughly $17,000 on their investment because of fees.

Another important factor to keep in mind is inflation. In order to preserve the value of your portfolio, its important to choose investments that beat inflation, which has historically averaged around 3.3%.

For perspective, since 1974 the S&P 500 has returned 12.5% on average annually (including reinvested dividends), 10-Year U.S. Treasury bonds have returned 6.6%, while real estate has averaged 5.6%. As we can see, each of these have outperformed inflation over longer horizons, with varying degrees of risk and return.

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What Were the Top Performing Investment Themes of 2023?

In 2023, several investment themes outperformed the S&P 500 by a wide margin. Here are the top performers—from blockchain to AI.

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The Top Performing Investment Themes in 2023

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

While the S&P 500 rebounded over 24% in 2023, many investment themes soared even higher.

In many ways, the year was defined by breakthrough announcements in AI and the resurgence of Bitcoin. At the same time, investors looked to nuclear energy ETFs thanks to nuclear’s growing role as a low carbon energy source and the war in Ukraine.

This graphic shows the best performing investment themes last year, based on data from Trackinsight.

Blockchain ETFs Lead the Pack

With 82% returns, blockchain ETFs outperformed all other themes in the U.S. due to the sharp rise in the bitcoin price over the year.

These ETFs hold mainly bitcoin mining firms, since ETFs investing directly in bitcoin were not yet approved by regulators in 2023. However, as of January 2024, U.S. regulators have approved 11 spot bitcoin ETFs for trading, which drew in $10 billion in assets in their first 20 days alone.

Below, we show the top performing themes across U.S. ETFs in 2023:

Theme2023 Performance
Blockchain82%
Next Generation Internet80%
Metaverse59%
FinTech54%
Nuclear Energy50%
Cloud Computing49%
AI/Big Data49%
Gig Economy48%
Digital Infrastructure & Connectivity43%

As we can see, next generation internet ETFs—which include companies focused on the internet of things and new payment methods—also boomed.

Meanwhile, nuclear energy ETFs had a banner year as uranium prices hit 15-year highs. Investor optimism for nuclear power is part of a wider trend of reactivating nuclear power plants globally in the push towards decarbonizing the energy supply. In fact, 63 new reactors across countries including Japan, Türkiye, and China are planned for construction amid higher global demand.

With 49% returns, AI and big data ETFs were another top performing investment theme. Driving these returns were companies like chipmaker Nvidia, whose share price jumped by 239% in 2023 thanks to its technology being fundamental to powering AI models.

Top Investment Themes, by Net Flows

Here are the the investment themes that saw the highest net flows over the year:

Theme2023 Net Flows
Robotics & Automation$1,303M
Nuclear Energy$997M
AI/Big Data$987M
Global Infrastructure$734M
Net Zero 2050$716M
Blockchain$357M
Cannabis & Psychedelics$270M
Emerging Markets Consumer Growth$203M

Overall, ETFs focused on robotics and automation saw the greatest net flows amid wider deployment of these technologies across factories, healthcare, and transportation actvities.

The success of AI large language models over the year is another key factor in powering robotics capabilities. For instance, Microsoft is planning to build a robot powered by ChatGPT that provides it with higher context awareness of certain tasks.

Like robotics and automation, AI and big data, along with blockchain ETFs attracted high inflows.

Interestingly, ETFs surrounding emerging markets consumer growth saw strong inflows thanks to an expanding middle class across countries like India and China spurring potential growth opportunities. In 2024, 113 million people are projected to join the global middle class, seen mainly across countries in Asia.

Will Current Trends Continue in 2024?

So far, many of these investment themes have continued to see positive momentum including blockchain and next generation internet ETFs.

In many cases, these investment themes cover broad, underlying trends that have the potential to reshape sectors and industries. Going further, select investment themes have often defined each decade thanks to factors like technological disruption, geopolitics, and the economic environment.

While several factors could impact their performance—such as a global downturn or a second wave of inflation—it remains to be seen if investor demand will carry through the year and beyond.

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