2024 Year-Over-Year Home Value Trends: Insights from Zillow’s Economic Data

The real estate market often reflects broader economic conditions, with home values serving as key indicators of economic health and consumer confidence. Zillow's recent data on year-over-year (YoY) changes in home values across 51 regions provides insightful trends. This article delves into the data, highlighting key increases and decreases in home values over the past year.

Overview of the Data

Notable Decreases in Home Values

While the majority of regions experienced an increase in home values, a few saw notable declines:

• New Orleans, LA: -7.0%
• Austin, TX: -3.6%
• San Antonio, TX: -1.8%

New Orleans, LA faced the steepest decline at -7.0%, reflecting potential local economic challenges or market corrections following previous rapid growth periods. Austin, TX and San Antonio, TX also saw decreases, though less severe, at -3.6% and -1.8% respectively. These declines could be attributed to factors such as overvaluation corrections or changing demand dynamics.

Significant Increases in Home Values

Contrasting the regions with declining values, several areas experienced substantial increases in home values:

• San Jose, CA: 12.5%
• Hartford, CT: 12.3%
• San Diego, CA: 12.0%
• Los Angeles, CA: 9.4%
• Boston, MA: 9.1%
• Providence, RI: 8.7%
• Cleveland, OH: 8.0%
• Philadelphia, PA: 7.7%
• Buffalo, NY: 7.7%
• Chicago, IL: 7.7%

San Jose, CA leads with a remarkable 12.5% increase, indicative of its growing appeal and economic vitality. Hartford, CT and San Diego, CA follow closely, with increases of 12.3% and 12.0% respectively. These cities are benefiting from factors such as robust job markets, population influx, and favorable living conditions.

Full List of Regions and Percentage Changes

Here is the complete list of regions and their YoY percentage changes in home values, organized from lowest to highest:

Factors Influencing Home Value Changes

Several factors contribute to the changes in home values, including:

• Economic Conditions: Regional economic performance significantly impacts real estate values. Areas with strong job growth and economic stability tend to see rising home values.
• Supply and Demand: The balance between housing supply and demand drives price changes. Regions with limited housing supply and high demand witness greater price increases.
• Interest Rates: Changes in interest rates influence borrowing costs, affecting homebuying affordability and, consequently, home values.
• Migration Patterns: Influx or exodus of residents due to factors like employment opportunities, climate, and living conditions also affects regional home values.

Conclusion

Zillow's YoY home value data highlights the dynamic nature of the real estate market, revealing significant regional variations. Many areas are experiencing rising values driven by economic growth and demand, while others are seeing corrections. Understanding these trends is essential for stakeholders, including homeowners, potential buyers, and investors, to make informed decisions.

As the real estate market continues to evolve, monitoring such data will provide valuable insights into the broader economic landscape and regional economic health. Whether you are considering buying, selling, or investing, staying informed about these trends is crucial for navigating the complexities of the real estate market.

Source: Zillow Research Data