Home value growth outstripped median salaries in 25 of 38 metro areas during 2021.
Big Disparity in Home Value & Median Salary Growth in 2021
Research from Zillow pointed to the huge disparity in home value and median salary growth during 2021.
In 2021, 25 of 38 metro areas throughout the country saw growth rates in home values surpass those in median salary growth. For a stark comparison to that kind of growth disparity, you need to look only to the fact that just five of these same metro areas saw home value appreciation outpace median sales in 2020.
According to Zillow economist Nicole Bachaud, “Those who owned a home saw their household wealth increase dramatically (in 2021). But many renters witnessed that dream (of homeownership) either soar out of reach or had to drastically adjust their expectations and plans.”
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2021 – Year of Haves & Have-Nots
Home appreciation had a banner year in 2021. Some houses all by themselves earned more than the median worker earned in several major metros across the US. Homeowners in 11 of 38 metro areas saw their home appreciation reach higher than $100,000. In San Jose CA, the country’s highest median salary of $93,000/year was outdone by its typical home with its appreciation growing an eye-popping $229,277 over 2021.
Metros seeing the largest value appreciation growth included:
– San Jose CA
– San Francisco CA
– Boise ID
– Salt Lake City UT
– Seattle WA
– Phoenix AZ
Metros with the lowest home price appreciation relative to median salaries included:
– Detroit MI
– St. Louis MO
– Baltimore MD
Rents Up +16% Across US and +25% in Sun Belt Locales
Renters watched home prices skyrocket in 2021 as they paid +16% more in monthly rent payments than they had during 2020. Locking in a one-year lease on a typical rental cost +$3,072 at the end of 2021 than at the start of the year.
In Miami, a one-year lease cost +$7,104 more at the end of the year than at the beginning of 2021; in Phoenix, it cost $4,644 more, and in Las Vegas, it cost $4,308 more.
Meanwhile, down payments on traditional 30-year mortgages increased more than +$10,000 in 2021. according to Zillow.
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Thanks to Zillow.