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According to the Federal Housing Finance Agency House Price Index (FHFA HPI), house prices across the United States rose 17.7% in the second quarter of 2022 compared to the same period last year.
The 2020s would rank as the third-highest appreciating decade to grow real estate prices in history. Yes, prices are going up fast, but not as fast as some may make you think. The record in the growth rate of real estate prices belongs to the 70s.
The cause for the high real estate prices in the United States is not enough buildings and the cost to build. The share of owner-occupant households is growing much faster than the number of investor-owned houses.
Nowadays, the United States has had record-low buildings for years after the last crash, and that building has never caught up. With supply chain problems, the time to build has grown dramatically, and the actual number of households being built is extremely low.
Below is the map created TitleMax team that shows where real estate prices in the United States are appreciating and depreciating the fastest.
TitleMax
If we take a more extended historical period, the picture of rising real estate prices may look different. Below is a graph of American city housing price changes since 1991 created by Reddit user fred_fotch using Federal Housing Finance Agency data.
According to this data, the Austin metropolitan area has had the most significant changes in home prices since 1991.
