Here is The place House Costs Rose—and Fell—the Most in 2022

By any definition, 2022 was one wild, white-knuckle curler coaster of a yr for actual property. Demand and residential costs hit new highs, earlier than abruptly delivering the wrong way in response to greater mortgage rates of interest.

With a lot churn and fluctuation in markets throughout the U.S., it’s been a problem all yr to maintain monitor of which locations have been up and which have been down—the cities the place costs remained close to their peak and the place they dipped probably the most. That’s why Realtor.com® crunched the numbers to provide you with the definitive house pricing scorecard for 2022.

And there’s loads at stake. For many who bought a house earlier this yr, the dip in costs in some areas may imply their house is value much less now than what they paid. For many who have been priced out of homeownership, the identical worth declines may imply a renewed probability to lastly snag a spot.

And the place costs stay excessive, those that have owned for greater than a few years can revel within the mighty house fairness they’ve gained. These nonetheless on the lookout for a house in the identical areas will really feel the stress of excessive house prices.

What the numbers reveal shouldn’t be an enormous shock, particularly within the record of the metro areas which have fallen in worth probably the most.

“It’s a who’s who of cities that grew to become widespread in the course of the [COVID-19] pandemic,” says George Ratiu, Realtor.com® senior economist and supervisor of financial analysis. “These are locations for individuals who have been fleeing high-cost city cities.”

Now, these areas are seeing costs that had risen probably the most coming again all the way down to Earth.

“It’s the pure response to the sharp run-up in costs over the previous couple of years now assembly the brand new, greater mortgage charges this yr,” Ratiu says.

As for the markets which have held on to their worth will increase, Ratiu says all of them have one thing in widespread: They’re all traditionally inexpensive areas, largely in the midst of the nation.

“They provide house consumers plenty of worth,” says Ratiu.

They seemingly additionally benefited from one other dynamic at play in the course of the pandemic period: a spillover impact from markets that have been hottest throughout the identical interval, however which now see costs plateauing or falling.

To find out our rankings, we seemed on the year-over-year change within the median worth per sq. foot for the 100 largest metro areas within the nation on Realtor.com, from mid-December 2021 to mid-December 2022. Then we pulled out the 5 markets with the largest year-over-year improve and the 5 markets with the largest lower. We restricted our rankings to solely the one largest improve and reduce per state, with a view to guarantee geographic variety. (Metros embrace the principle metropolis and surrounding suburbs, cities, and smaller city areas.)

Largest worth will increase of 2022

1. Omaha, NE

Yr-over-year change in worth per sq. foot: +21.6%
Mid-Dec. 2022 median itemizing worth per sq. foot: $181
Mid-Dec. 2022 median itemizing worth: $342,500

Omaha has the largest year-over-year worth positive aspects of anywhere on the record, rising from the median of $149 per sq. foot to $181. Nonetheless, even with the 20%-plus improve in costs in only one yr, it’s nonetheless comparatively inexpensive in contrast with the remainder of the nation. Costs are about 15% beneath the nationwide common of $212 a sq. foot.

Nebraska’s largest metropolis by far is house to a number of Fortune 500 corporations, together with Warren Buffett’s worldwide holding firm, Berkshire Hathaway. The realm can be recognized for its low value of dwelling, vibrant music scene, and world-class zoo and aquarium.

Omaha can be midway between Denver and Chicago and, Ratiu says, is a first-rate instance of how midsized cities within the Midwest benefited from their proximity to bigger locations, particularly those who had turn out to be frenzied markets in the course of the pandemic.

“The markets the place the most individuals have been house [listings] in Omaha have been Chicago, Washington, DC, and Denver,” Ratiu says.

2. Jackson, MS

Yr-over-year change in worth per sq. foot: +21.6%
Mid-Dec. 2022 median itemizing worth per sq. foot: $144
Mid-Dec. 2022 median itemizing worth: $316,000

Jackson led the Deep South in year-over-year appreciation, rising greater than 20%—but it surely’s nonetheless greater than 30% beneath the nationwide common.

Costs rose within the capital of Mississippi all year long, with a small dip in the midst of the yr. It in the end ended the yr nearly tied with Omaha for the largest year-over-year improve in worth per sq. foot.

This iconic Southern metropolis has a number of basic strengths that add to its draw. Along with being the capital of Mississippi and the seat of state authorities, it’s additionally house to Jackson State College and the College of Mississippi Medical Heart, in addition to a powerful manufacturing business. It’s additionally a hub of Southern tradition, and the realm is full of antebellum mansions and historic websites.

For $320,000, house hunters can get a midcentury four-bedroom house within the Belhaven neighborhood, north of downtown Jackson, or a sprawling, ranch-style house farther within the Jackson suburbs.

3. Wichita, KS

Yr-over-year change in worth per sq. foot: +21.5%
Mid-Dec. 2022 median itemizing worth per sq. foot: $135
Mid-Dec. 2022 median itemizing worth: $289,900

Wichita, often known as “The Air Capital of the World,” is the least costly location on the record—a boon for consumers on a price range. The median itemizing worth per sq. foot was greater than 35% beneath the nationwide common. And that’s after median itemizing costs rose by $60,000 over the previous yr.

Wichita is understood for its aviation business, with aerospace corporations Learjet, Cessna, and Airbus situated there.

The town affords a mixture of the walkable city middle, with the Outdated City leisure district on the middle, and many outside life-style actions, like mountain climbing and biking, or getting out on the Arkansas River.

Consumers can discover up to date, three-bedroom, two-bathroom homes on nearly a half-acre for slightly below $230,000. Or they will decide up a smaller, two-bedroom, one-bathroom home for about $135,o00.

4. Milwaukee, WI

Yr-over-year change in worth per sq. foot: +20.9%
Mid-Dec. 2022 median itemizing worth per sq. foot: $204
Mid-Dec. 2022 median itemizing worth: $374,900

An anchor of the Midwest, Milwaukee, situated on the shores of Lake Michigan, has the best median itemizing worth per sq. foot of any metropolis on the biggest-increases half of the record. However it’s nonetheless about 4% decrease than the nationwide determine. And with a median itemizing worth of $374,900, Milwaukee continues to be cheaper than what consumers will discover in a lot of the remainder of the nation.

The town is understood for its breweries and because the birthplace of the Harley-Davidson Motor Co. Bike fans can go to the Harley-Davidson Museum and take a look at Elvis Presley’s personal rides.

For proper round Milwaukee’s median house worth, customers can get a Victorian four-bedroom house within the Bay View neighborhood, strolling distance from the Lake Michigan shore.

5. Little Rock, AR

Yr-over-year change in worth per sq. foot: +20.1%
Mid-Dec. 2022 median itemizing worth per sq. foot: $142
Mid-Dec. 2022 median itemizing worth: $299,900

Arkansas’ capital, Little Rock, rounds out the biggest-increases record, nonetheless with greater than 20% itemizing worth per sq. foot positive aspects over the previous yr.

Little Rock is house to the Clinton Presidential Heart, the Arkansas Arts Heart, and the Outdated State Home Museum, the oldest state capitol constructing west of the Mississippi River. It’s additionally an academic hub of the South, with the College of Arkansas at Little Rock and Philander Smith School.

There was some homebuying spillover from close by markets that grew to become overheated in the course of the pandemic, says Melanie Jackson, the dealer and proprietor of Limitless Properties Realty in Little Rock.

“Individuals who wouldn’t usually have thought of shopping for in or investing in Little Rock have been gobbling issues up. They have been shopping for the whole lot they may,” she says. “It was good, as an inventory agent, however hectic—and it was robust on the consumers.”

Whereas the sustained greater costs imply fairness positive aspects for house owners, Jackson says it’s been robust to observe as locals have been priced out, or priced out of what they wished.

Largest worth decreases of 2022

1. Boise Metropolis, ID

Yr-over-year change in worth per sq. foot: -5.8%
Mid-Dec. 2022 median itemizing worth per sq. foot: $263
Mid-Dec. 2022 median itemizing worth: $509,900

Boise was one of many hottest markets in the course of the pandemic as an inflow of former Californians moved in and builders rushed to place up extra houses. Checklist costs rose greater than 70% between the start of 2020 and the center of 2022.

The skyrocketing costs in Boise mirrored the surge in demand for locations that provided affordability, relative to large coastal metropolitan areas that many consumers have been shifting from.

Realtor.com economist Ratiu says it’s no shock to see Boise main the nation in worth declines since hiked rates of interest put the brakes available on the market.

“The run-up in costs in a spot like Boise, the place there was such an influx of recent consumers, was large, [especially] while you have a look at the scale of the market or the native incomes,” Ratiu says. “The costs have been out of alignment.”

Many sellers have been pressured to scale back their asking costs to draw consumers—an enormous departure from a yr in the past. The share of houses within the metro with worth cuts have been up 100.9%. The sellers of this up to date, three-bedroom, two-bathroom home lower the worth $56,000 to $449,000 because it went available on the market in late November.

2. Denver, CO

Yr-over-year change in worth per sq. foot: -5.7%
Mid-Dec. 2022 median itemizing worth per sq. foot: $280
Mid-Dec. 2022 median itemizing worth: $599,990

The Mile Excessive Metropolis’s mile-high costs have come down some, as this pandemic vacation spot’s red-hot market cools off.

Like Boise, Denver attracted plenty of newcomers who have been fleeing city areas that made Denver’s already above-average house costs look inexpensive. A perk for consumers have been that the town and state are recognized for among the lowest property taxes within the nation. That helped to maintain month-to-month mortgage funds extra manageable.

House costs in Denver surged about 35% between the start of the pandemic and early in 2022. However like in different cities, house costs started to fall, and now are nearly 6% beneath final yr.

For round $600,000, house customers can discover a two-bedroom bungalow inbuilt 1905 in Denver’s coveted Highlands neighborhood.

3. Sacramento, CA

Yr-over-year change in worth per sq. foot: -3.1%
Mid-Dec. 2022 median itemizing worth per sq. foot: $328
Mid-Dec. 2022 median itemizing worth: $591,500

California’s capital of Sacramento is the most costly metro on the record, with houses round 50% above the nationwide common.

Nonetheless, it’s lengthy been recognized for a comparatively low value of dwelling and extra relaxed life-style, in contrast with San Francisco, about an hour and a half southwest, the place the median house record worth within the metro was over $1 million in November.

These decrease costs in Sacramento helped the town to draw Californians fleeing greater costs within the Bay Space who may instantly work remotely. That helped to provide costs a hefty enhance.

Costs rose greater than 35% between the start of 2020 and mid-2022. However the actual property market has since cooled as greater mortgage charges have modified the affordability equation.

For slightly below $600,000, house customers can discover a small, two-bedroom house in Sacramento’s Marshall Faculty neighborhood, east of the Capitol Mall metropolis middle.

4. New Orleans, LA

Yr-over-year change in worth per sq. foot: -2.7%
Mid-Dec. 2022 median itemizing worth per sq. foot: $179
Mid-Dec. 2022 median itemizing worth: $325,000

The Crescent Metropolis is the one Southern metro on the record of worth declines, with costs down round 3% yr over yr.

That’s after costs in New Orleans went up round 30%. House insurance coverage prices in and across the storm-prone Massive Straightforward are anticipated to rise in 2023, and the pandemic actual property frenzy has died down, serving to to carry down costs.

Median itemizing costs in New Orleans are nonetheless about 15% beneath the nationwide common. And for concerning the metro’s median worth of $325,000, customers can discover a three-bedroom house within the Central Metropolis neighborhood, southwest of the town’s well-known Canal Avenue.

5. Chicago, IL

Yr-over-year change in worth per sq. foot: -1.6%
Mid-Dec. 2022 median itemizing worth per sq. foot: $188
Mid-Dec. 2022 median itemizing worth: $320,000

Chicago is probably the most populous metro on the record, and the one with the decline closest to flat for the yr. That extra modest house pricing lower is a operate of the Second Metropolis’s measurement and variety, in response to Nancy Nugent, the worldwide actual property adviser and senior vp at Jameson Sotheby’s Worldwide Realty.

“Chicago fares higher as a result of we now have so many industries and a number of economies,” Nugent says.

Regardless of the modest declines, Nugent says she continues to be seeing loads of exercise in Chicago’s actual property market. It’s nonetheless comparatively inexpensive in contrast with many different massive cities.

“We’re climbing out of the COVID period, and persons are coming again to the town,” she says. “There’s an actual resurgence proper now.”

Chicago house customers can get a two-bedroom condominium for round $320,000 within the metropolis’s well-known Lincoln Park.