Nation’s Hottest 6 Housing Markets During Pandemic

#1 Utah

• Home values jumped 15.4% in 2020 (3rd best among U.S. states, FHFA)
• Second-strongest job growth in Nation in 2020 (Labor Department data)
• Tax burden among lowest in Nation (Tax Foundation)

If you look back on Utah’s housing market over the last several years, it’s not a recent trend that has California residents packing up their bags for a more affordable market. Not only did Utah provide great prices and a scenic landscape, but west coast residents also got way more bang for their buck in regards to space after making the move for Utah’s mountain metros. The silicon slope market was slowly getting hotter before the pandemic, and we’re still seeing record growth even after all of the chaos of 2020.

Bankrate.com recently ran a housing heat index to gauge which markets performed the best during the pandemic. Utah came out with the nation’s strongest job growth pace, incredibly low unemployment, great mortgage rates, and low state/local taxes.

Utah ranked #1 on the Housing Index for Q4 2020 making the state a very attractive market for both residents and out-of-state investing.

#2 Montana

• 15.5% Increase in home prices in 2020
• Nation’s lowest level of past-due mortgage payments (Mortgage Bankers Association)

#3 Nebraska

• Nation’s lowest unemployment in December 2020 (3%)
• Home price appreciation was 12%

#4 Idaho

• Hottest home prices in the Nation (+21.1% in 2020)
• Strongest job growth in Nation
• Idaho’s overall ranking was average due to its cost of living/taxes

#5 Indiana

• Home prices have already increased 12.3% in 2021
• Tax burden: 9th lowest in Nation.

#6 Arizona

• Appreciation Rank: 4th
• Job  Growth Rank: 8th

The Research

Bankrate’s Housing Heat Index focused on six criteria to figure out how different states/metros performed throughout the pandemic. These include annual home appreciation, the share of mortgages past due, unemployment and job growth, cost of living, and state-by-state tax burdens. View the rest of the findings below…

The Trends

“The prominent rankings of states in the Mountain time zone illustrate a shift in the housing market: Americans are still drawn to healthy labor markets, but even before the coronavirus pandemic, they were growing less willing to pay up to live in places like San Jose, Seattle, and Boston.” – Bankrate

We now live in an age where an increasing number of jobs are able to be performed remotely. This has given homeowners a great deal of flexibility, especially in the tech sector, to leave pricier states for more affordable climates.

“We are seeing the makings of a renewed affordability migration. The beneficiaries of that shift have largely been the midsized metros in the mountain states of the West.” Mark Vitner, senior economist at Wells Fargo

What does this look like in reality? The median price for a single-family home in the Silicon Valley during Q4 2020 was $1.4 million!!! Compare this to Salt Lake County’s average right now of $406,500 (NAOR). While even Salt Lake’s average is slightly above the national median, it’s nothing compared to Northern California.

Suddenly the concept of moving makes a lot of sense. Especially if you’re able to work remotely. Workers can take their high-income jobs to an area with a drastically lower cost of living.

All Markets Ranked 

State	Overall rank	Appreciation rank	Past due rank	Job growth rank	Unemployment rank	Cost of living rank	Tax rank
Utah	1	3	5	2	5	31	8
Montana	2	2	1	12	12	29	5
Nebraska	3	12	14	6	1	22	28
Idaho	4	1	40	1	12	21	20
Indiana	5	10	36	10	11	11	9
Arizona	6	4	10	8	39	27	24
Washington	7	6	3	27	35	38	16
New Hampshire	8	9	12	46	8	43	6
North Carolina	9	17	22	16	28	12	10
South Dakota	10	45	2	11	1	24	2
Tennessee	11	19	23	14	32	5	18
Georgia	12	18	45	5	23	8	31
Kansas	12	25	29	18	6	16	35
Ohio	12	11	33	30	21	6	39
Alabama	15	28	38	4	7	10	41
Oregon	16	15	4	39	32	40	15
Maine	17	8	28	38	17	39	29
Missouri	18	36	21	13	24	3	12
Arkansas	19	32	34	9	10	2	45
Kentucky	20	26	26	25	26	7	19
Iowa	21	43	6	20	3	17	40
Wisconsin	22	31	8	36	21	20	25
Wyoming	23	42	15	19	16	32	1
Vermont	24	20	19	47	3	41	43
Florida	25	22	43	23	27	25	4
South Carolina	26	37	32	7	15	18	33
New Mexico	27	13	24	37	46	23	23
Virginia	27	35	20	21	17	30	26
Mississippi	29	30	50	3	28	1	32
Michigan	30	23	17	50	39	4	14
North Dakota	31	48	7	32	9	33	17
Colorado	32	27	13	26	48	36	21
Connecticut	33	5	44	28	44	46	47
Rhode Island	34	7	30	45	45	45	37
Minnesota	35	38	9	44	12	28	46
Oklahoma	36	40	41	24	19	9	30
California	36	16	10	43	49	50	49
Pennsylvania	38	24	37	40	34	26	27
Massachusetts	39	21	18	48	38	47	34
Alaska	40	44	16	34	24	48	3
Texas	40	39	46	15	36	14	11
Delaware	42	41	31	41	19	34	13
New Jersey	43	14	49	42	41	42	50
Maryland	44	33	47	22	30	44	44
West Virginia	45	46	42	29	30	13	22
Nevada	46	34	39	33	50	35	7
Illinois	47	47	35	35	41	19	36
Louisiana	47	50	51	17	36	15	42
New York	49	29	48	49	46	37	48
District of Columbia	50	51	27	31	43	51	46
Hawaii	51	49	25	51	51	49	38