Fueled by record-low interest rates and scarce inventory, home value growth surged in December by 3.2 percent over the previous quarter – the largest increase in at least a quarter century, according to a new report released by Zillow.
Typical home values in the U.S. climbed to $266,104 in December, up 8.4 percent from a year earlier – the highest annual increase since January 2014.
“The housing market ended 2020 with an exclamation point, as home values rose sharply near the end of the year at their fastest quarterly rate on record,” said Jeff Tucker, senior economist at Zillow. “Sales are taking place at a rapid clip as momentum gathering in the market since June is still pushing forward at full force and is expected to continue for the foreseeable future. Although prices are skyrocketing, record-low mortgage rates keep bringing buyers to the table by keeping monthly payments in reach.”
Monthly home value growth for the U.S. held steady at 1.1 percent, same as November. This is the fastest month-over-month growth in the series history reaching back to 1996.
Monthly growth ranged from 0.6 percent in Las Vegas to 1.8 percent in Salt Lake City. Here is a market-by-market look at growth:
| Metropolitan Area | Zillow Home Value Index (ZHVI), December 2020 | ZHVI – YoY Change, December 2020 | Newly Pending Listings – YoY Change, December 2020 | Zillow Observed Rent Index (ZORI), December 2020 | ZORI – YoY Change, December 2020 |
| United States | $266,104 | 8.4% | 21.7% | $1,740 | 0.8% |
| New York, NY | $512,941 | 7.0% | 49.2% | $2,469 | -8.7% |
| Los Angeles-Long Beach-Anaheim, CA | $739,930 | 9.3% | 20.9% | $2,589 | -0.2% |
| Chicago, IL | $258,381 | 6.3% | 30.8% | $1,608 | -2.1% |
| Dallas-Fort Worth, TX | $270,757 | 7.5% | 23.5% | $1,612 | 2.7% |
| Philadelphia, PA | $275,148 | 9.7% | 75.0% | $1,589 | 2.5% |
| Houston, TX | $228,789 | 6.0% | 29.3% | $1,521 | 1.2% |
| Washington, DC | $471,888 | 7.8% | 84.9% | $2,022 | -2.3% |
| Miami-Fort Lauderdale, FL | $319,594 | 7.0% | 24.4% | $1,901 | 2.0% |
| Atlanta, GA | $261,664 | 8.9% | 15.1% | $1,606 | 5.8% |
| Boston, MA | $535,997 | 9.1% | 18.6% | $2,230 | -5.9% |
| San Francisco, CA | $1,167,602 | 5.9% | 56.2% | $2,924 | -8.1% |
| Detroit, MI | $197,049 | 9.8% | 32.0% | $1,325 | 6.0% |
| Riverside, CA | $427,863 | 10.3% | 17.6% | $2,218 | 9.4% |
| Phoenix, AZ | $328,359 | 15.3% | 25.5% | $1,587 | 8.4% |
| Seattle, WA | $586,162 | 13.0% | 17.1% | $1,896 | -3.9% |
| Minneapolis-St Paul, MN | $316,151 | 7.9% | 20.6% | $1,538 | 1.1% |
| San Diego, CA | $678,665 | 12.5% | $2,375 | 4.3% | |
| St. Louis, MO | $195,380 | 8.4% | 26.5% | $1,113 | 4.2% |
| Tampa, FL | $253,596 | 11.4% | $1,573 | 6.8% | |
| Baltimore, MD | $316,857 | 7.6% | 37.8% | $1,660 | 2.8% |
| Denver, CO | $481,402 | 8.3% | 11.7% | $1,756 | 0.6% |
| Pittsburgh, PA | $175,882 | 9.2% | 13.2% | $1,166 | 2.3% |
| Portland, OR | $453,127 | 9.2% | 26.8% | $1,670 | 1.7% |
| Charlotte, NC | $260,976 | 9.7% | -1.4% | $1,516 | 4.1% |
| Sacramento, CA | $475,045 | 10.8% | 21.6% | $1,942 | 6.9% |
| San Antonio, TX | $219,862 | 6.0% | 41.4% | $1,345 | 2.4% |
| Orlando, FL | $273,214 | 7.2% | $1,604 | 2.1% | |
| Cincinnati, OH | $205,977 | 11.3% | 17.8% | $1,289 | 5.8% |
| Cleveland, OH | $173,637 | 10.8% | 32.4% | $1,159 | 4.6% |
| Kansas City, MO | $224,826 | 10.0% | 18.7% | $1,203 | 5.0% |
| Las Vegas, NV | $313,532 | 7.6% | 13.2% | $1,508 | 6.8% |
| Columbus, OH | $231,028 | 10.3% | 13.3% | ||
| Indianapolis, IN | $202,370 | 10.6% | 18.9% | $1,271 | 7.0% |
| San Jose, CA | $1,287,714 | 15.2% | -11.1% | $2,970 | -6.2% |
| Austin, TX | $378,454 | 12.9% | 12.1% | $1,548 | -0.9% |
| Virginia Beach, VA | $261,539 | 7.8% | $1,385 | 5.9% | |
| Nashville, TN | $300,531 | 8.3% | |||
| Providence, RI | $353,514 | 10.6% | -11.5% | $1,587 | 9.8% |
| Milwaukee, WI | $217,160 | 11.2% | $1,121 | 2.3% | |
| Jacksonville, FL | $248,835 | 8.2% | 29.4% | $1,380 | 5.8% |
| Memphis, TN | $171,488 | 10.6% | 16.0% | $1,318 | 9.7% |
| Oklahoma City, OK | $168,880 | 7.4% | 24.6% | $1,115 | 4.2% |
| Louisville-Jefferson County, KY | $196,330 | 8.6% | 8.5% | $1,028 | 4.8% |
| Hartford, CT | $258,544 | 8.6% | 39.8% | $1,354 | 5.2% |
| Richmond, VA | $266,172 | 7.3% | $1,312 | 5.3% | |
| New Orleans, LA | $221,704 | 7.5% | 23.7% | $1,331 | 3.3% |
| Buffalo, NY | $192,742 | 10.9% | 8.9% | $1,112 | 5.6% |
| Raleigh, NC | $303,677 | 7.2% | 7.6% | $1,522 | 2.8% |
| Birmingham, AL | $186,523 | 9.3% | 46.0% | $1,110 | 6.0% |
| Salt Lake City, UT | $428,280 | 13.2% | $1,427 | 3.9% |