Average House Price by State in 2022
from The Ascent, July 28, 2022
The average house price has been rising rapidly nationwide. According to the Federal Reserve Bank of St. Louis, the median home sales price is $428,700. That's an increase of $58,900 from just a year ago.
Why the fast rise in the average U.S. house price? Look no further than the COVID-19 pandemic.
Mortgage rates fell significantly in 2020, driving up demand as homebuyers looked to take advantage. The pandemic also led to consumers shifting spending to housing and pushed more millennials toward homeownership.
At the same time, homeowners have been reluctant to list their homes and there's a housing production shortfall. Housing supply shrunk through 2021, but housing inventory began to recover in 2022.
This resulted in one of the biggest seller's markets in history, although that may be changing as mortgage rates increase and housing supply expands. Now, let's take a deeper dive into what average house prices are like across the country.
- The median home price in the United States is $428,700 as of the first quarter of 2022.
- Home prices in the U.S. increased by 30% from 2020 to 2022.
- The median home price in the U.S. increased by 416% from 1980 to 2020.
- The Zillow Home Value Index puts the typical home price in the U.S. at $354,649.
- Mortgage payments on a typically priced home equal 30.7% of the U.S. median income.
- Hawaii is the most difficult state to buy a home, based on Zillow's data. The average mortgage payment is 78.3% of the state's median income.
- West Virginia has the cheapest home prices according to Zillow at 40% of the typical U.S. price. Mortgage payments there take up 16.5% of the state's median income on average, the lowest rate in the nation.
Average home price in the United States: $428,700
The median home sales price is $428,700 as of the first quarter of 2022. That's a 30% increase from 2020, when the median was $329,000….
Typical home price in the United States: $354,649
The Zillow Home Value Index (ZHVI) isn't an average, but it represents the typical home value in a given area. In the United States as a whole, the ZHVI is $354,649.
How affordable is that? Based on that typical home price and the U.S. median income of $67,521, mortgages take up 30.7% of a homeowner's income on average.
That doesn't quite pass the 28% rule, which says that your mortgage payment should be no more than 28% of your pre-tax income….
- Typical home price in Hawaii: $1,038,544 (242% of typical U.S. price)
- Typical single-family home value in 2022: $1,038,544
- Hawaii mortgage rate, July 2022: 5.64%
- Average mortgage payment to median income: 78.3%
Hawaii takes the top spot as the most difficult place to afford a home. The median income may be 20% more than the U.S. median, but it's not enough to balance out staggering home prices….
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KITV: Hawaii the most expensive state in the country for housing