House prices grew year-on-year in most states in the U.S. in the third quarter of 2024. The District of Columbia was the only exception, with a decline of three percent. The annual appreciation for single-family housing in the U.S. was 0.71 percent, while in Hawaii—the state where homes appreciated the most—the increase exceeded 10 percent. How have home prices developed in recent years? House price growth in the U.S. has been going strong for years. In 2024, the median sales price of a single-family home exceeded 413,000 U.S. dollars, up from 277,000 U.S. dollars five years ago. One of the factors driving house prices was the cost of credit. The record-low federal funds effective rate allowed mortgage lenders to set mortgage interest rates as low as 2.3 percent. With interest rates on the rise, home buying has also slowed, causing fluctuations in house prices. Why are house prices growing? Many markets in the U.S. are overheated because supply has not been able to keep up with demand. How many homes enter the housing market depends on the construction output, whereas the availability of existing homes for purchase depends on many other factors, such as the willingness of owners to sell. Furthermore, growing investor appetite in the housing sector means that prospective homebuyers have some extra competition to worry about. In certain metros, for example, the share of homes bought by investors exceeded 20 percent in 2024.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Graph and download economic data for Housing Inventory: Active Listing Count in Texas (ACTLISCOUTX) from Jul 2016 to Feb 2025 about active listing, listing, TX, and USA.

As part of the Regional Housing Initiative (RHI), the team conducted a submarket analysis. This analysis identifies 2020 census tracts with similar housing characteristics (density, price, market conditions) and groups them accordingly. This submarket analysis uses a Latent Profile Analysis (LPA) via the mclust package in R to group the region's 1,407 eligible census tracts (tracts with no households or population were removed) into one of eight submarkets. The team reviewed the existing conditions of these submarkets to identify their housing challenges and appropriate policies and strategies for each submarket.Census tables used to gather data from the 2016-2020 American Community Survey 5-Year Estimates.Data DictionaryFieldNameSourcesubmarketHousing submarketDVRPChhinc_medMedian household incomeU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020rent_medMedian gross rentU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020ten_rentPercent of households that are renter-occupiedU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020ten_ownPercent of households that are owner-occupiedU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020vcyResidential vacancy rate U.S. Census Bureau, ACS 5-Year Estimates, 2016-2020hhi_150pPercent of households with incomes of $150,000 or higherU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020yb_59ePercent of housing units built in 1959 or earlierU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020yb_6099Percent of housing units built between 1960 and 1999U.S. Census Bureau, ACS 5-Year Estimates, 2016-2020yb_00pPercent of housing units built since 2000U.S. Census Bureau, ACS 5-Year Estimates, 2016-2020unit_1Percent of housing units that are 1 unit in structureU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020unit_2to4Percent of housing units that are 2 to 4 units in structureU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020unit_5pPercent of housing units that are 5 or more units in structureU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020pct_subsidizedPercent of housing units that are federally subsidized (Public housing, Section 8, LIHTC)U.S. Census Bureau, ACS 5-Year Estimates, 2016-2020, National Housing Preservation Database (NHPD)med21Median single family home sale price, 2021 The Warren Group, 2021pct_diffMedian percent change in median single family home sale price, 2016-2021The Warren Group, 2016 & 2021hhs_1Percent of households that are 1-person householdsU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020hhs_2to4Percent of households that are 2- to 4-person householdsU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020hhs_5pPercent of households that are 5 or more person householdsU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020hu_acreHousing units per acreU.S. Census Bureau, ACS 5-Year Estimates, 2016-2020Please contact Brian Carney, bcarney@dvrpc.org, for more information.

The average price of detached and duplex houses in the biggest cities in Germany varied between approximately 4,500 euros and 10,000 euros per square meter in 2024. Housing was most expensive in Munich, where the square meter price of houses amounted to 9,806 euros. Conversely, Berlin was most affordable, with the square meter price at 4,512 euros. How have German house prices evolved? House prices maintained an upward trend for more than a decade, with 2020 and 2021 experiencing exceptionally high growth rates. In 2021, the nominal year-on-year change exceeded 10 percent. Nevertheless, the second half of 2022 saw the market slowing, with the annual percentage change turning negative for the first time in 12 years. Another way to examine the price growth is through the house price index, which uses 2015 as a base. At its peak in 2022, the German house price index measured about 166 percent, which means that a house bought in 2015 would have appreciated by 66 percent. Is housing affordable in Germany? Housing affordability depends greatly on income: High-income areas often tend to have more expensive housing, which does not necessarily make them unaffordable. The house price to income index measures the development of the cost of housing relative to income. In the first quarter of 2024, the index value stood at 110, meaning that since 2015, house price growth has outpaced income growth by about 10 percent. Compared with the average for the euro area, this value was lower.

Graph and download economic data for Housing Inventory: New Listing Count in New Jersey (NEWLISCOUNJ) from Jul 2016 to Feb 2025 about NJ, new, listing, and USA.

The price of residential property in New Zealand was the highest in the Auckland region in December 2024, with an average sale price of around one million New Zealand dollars. The most populated city in the country, Auckland, has consistently reported higher house prices compared to most other regions. Buying property in New Zealand, particularly in its major cities, is expensive. The nation has one of the highest house-price-to-income ratios in the world. Auckland residential market The residential housing market in Auckland is competitive. Prices have been slowly decreasing; the Auckland region experienced an annual decrease in the average residential house price in December 2024 compared to the same month in the previous year. The price of residential property in Auckland was the highest in the North Shore City district, with an average sale price of around 1.21 million New Zealand dollars. Home financing Due to the rising cost of real estate, an increasing number of New Zealanders who want to own their own property are taking on mortgages. Most residential mortgage lending in New Zealand went to owner-occupier borrowers, followed by first home buyers. In addition to mortgage lending, previously under the KiwiSaver HomeStart initiative, first-home buyers in New Zealand were able to apply to withdraw all or part of their KiwiSaver retirement savings to assist with purchasing a first home. Nonetheless, the scheme was discontinued in May 2024. Furthermore, even with a large initial deposit, it may take decades for many borrowers to pay off their mortgage.

The average transaction price of new housing in Europe was the highest in Norway, whereas existing homes were the most expensive in Austria. Since there is no central body that collects and tracks transaction activity or house prices across the whole continent or the European Union, not all countries are included. To compile the ranking, the source weighed the transaction prices of residential properties in the most important cities in each country based on data from their national offices. For example, in Germany, the cities included were Munich, Hamburg, Frankfurt, and Berlin. House prices have been soaring, with Sweden topping the ranking Considering the RHPI of houses in Europe (the price index in real terms, which measures price changes of single-family properties adjusted for the impact of inflation), however, the picture changes. Sweden, Luxembourg and Norway top this ranking, meaning residential property prices have surged the most in these countries. Real values were calculated using the so-called Personal Consumption Expenditure Deflator (PCE), This PCE uses both consumer prices as well as consumer expenditures, like medical and health care expenses paid by employers. It is meant to show how expensive housing is compared to the way of living in a country. Home ownership highest in Eastern Europe The home ownership rate in Europe varied from country to country. In 2020, roughly half of all homes in Germany were owner-occupied whereas home ownership was at nearly 97 percent in Romania or around 90 percent in Slovakia and Lithuania. These numbers were considerably higher than in France or Italy, where homeowners made up 65 percent and 72 percent of their respective populations.For more information on the topic of property in Europe, visit the following pages as a starting point for your research: real estate investments in Europe and residential real estate in Europe.

Graph and download economic data for Housing Inventory: Active Listing Count in Fairfax County, VA (ACTLISCOU51059) from Jul 2016 to Feb 2025 about Fairfax County, VA; Washington; active listing; VA; listing; and USA.

Graph and download economic data for Housing Inventory: Median Listing Price per Square Feet in Texas (MEDLISPRIPERSQUFEETX) from Jul 2016 to Feb 2025 about square feet, listing, TX, median, price, and USA.