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The past few years have seen the price of home ownership skyrocket, leaving many people’s dream of home ownership out of reach. According to Bankrate, home prices increased 4.9% from May 2023 to May 2024, and unfortunately, it doesn’t look as though housing prices are going to come down anytime soon.
Some states are experiencing more dramatic increases than others. So, the future housing market may look very different depending on your location.
We turned to a SmartSurvey study to compile this list of 12 states where house prices to skyrocket by 2023.
Hawaii
Who wouldn’t want to live in Hawaii? The lifestyle is relaxed, and the landscapes are breathtaking. But, housing prices are high and expected to get even higher.
By 2030, the average house price in Hawaii is expected to be about $1,424,263. That’s way out of my price range and almost double the current average price of $777,428. So, if you plan to purchase property in Hawaii, do it sooner rather than later.
Nevada
With housing predictions, Nevada isn’t far behind Hawaii. The projected price of an average home in Nevada in 2030 is $1,042,647, 11.3% higher than today’s average home price.
However, Nevada’s projected income growth rate is only 2.1%. This will make purchasing a home in Nevada virtually impossible for many people.
California
By 2030, the average price of a home in California is expected to be $1,239,503. While it’s higher than Nevada, it’s only a 9.3% projected growth rate from the average price of a home today.
However, the income growth projection for California only predicts a 2.5% increase—slightly higher than Nevada’s but not nearly as high as the increase in home prices.
Utah
When you look at the projections for Utah, things seem way off. The projected average home price in 2030 is $1,123,350, but the projected income is only $56,787.
With such a large affordability gap, it will be hard for most people to get a mortgage, and saving for a down payment will be almost impossible.
Idaho
In 2022, the average price for a home in Idaho was about $379,725. This is expected to more than double by 2030, where the average home price is projected to be closer to $879.313. That’s a huge increase.
The average income is also expected to increase, but not as much as the increase in housing costs. This will make home ownership in Idaho particularly difficult for people on a fixed income and first-time buyers.
Montana
Montana is well known for its wide open spaces and slow pace of life. So you’d think housing prices wouldn’t be too high. However, in 2022, the average price of a Montana home was about $456,421. This is expected to increase to about $938,315.
That’s almost a million dollars, a price few people can afford. Especially when you consider the projected income in Montana is only expected to be about $55,263 by 2030.
Colorado
The average home price in Colorado in 2022 was about $569,783. That’s pretty high, but when you think about the beautiful mountain ranges and opportunities for outdoor activities, it might be a price some will pay.
However, by 2030, Colorado home prices are expected to jump to over a million dollars, about $1,062,957, a huge increase compared to 2022. It’s even more disheartening when you see the projected average income is only $64,054.
Oregon
Oregon is a state I’ve considered moving to for a while. But, with the projected home prices, that’s probably never going to happen.
In 2022, a home in Oregon cost about $415,244. By 2030, home prices are expected to average $842,952, more than double the 2022 prices. Like so many other states, the average pay in Oregon is not keeping up with the cost of living, making home ownership difficult for many.
Florida
Florida is a popular spot for vacationers and for people wanting to retire in a place with a warm climate, beautiful beaches, and lots of sunshine. In 2022, the average home price in Florida was about $345,305.
By 2030, home prices are expected to almost double, with the average home costing about $712,439. This is quite a bit lower than many other states, but so is the average income. By 2030, it’s projected that Floridians will only earn about $51,377.
Arizona
Arizona is another state where housing prices are expected to increase significantly. In 2022, the average home price was about $375,197, which is expected to rise to about $780.879 by 2030.
The average income for Arizona residents is expected to be about $56,994 by 2030. This is higher than Florida’s, but still not high enough for many people to buy a home.
Washington State
The average wage in Washington State is higher than that of many other states on this list. It was about $56,320 and is projected to be around $73,321 by 2030.
However, housing in Washington State isn’t cheap. In 2022, the average home price was about $453,720. By 2030, that is supposed to increase to $733,210, which is more than many middle-income earners and young families can afford.
South Dakota
The last state on this list is South Dakota, and while the prices aren’t as steep as many other states, there’s still a big jump from 2022 housing prices and income to 2030 projections.
In 2022, a home in South Dakota cost about $311,866, and the average income was $39,870. By 2030, the average home price is expected to be about $560,529, and the average income is about $51,306. This is a significant jump, but not enough for many people to purchase a home for half a million dollars.
Keeping the Pulse on Real Estate Prices
We used information from Bankrate to determine the increase in home prices over the last year and data collected by SmartSurvey to compile our list. SmartSurvey is a team of data collection experts who reviewed income data from the Bureau of Labor Statistics and home price data from Zillow to calculate growth rates and predict 2030 average home prices.
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13 Home Renovations That Are Not Worth the Money
There’s something to be said about making your home your own. However, certain renovation projects simply aren’t worth the money and time invested.
Being pragmatic about the projects you decide to invest in around your home can be a considerable challenge. There’s always the temptation to add the features you’ve dreamed of having. Then there’s the reality of costs, maintenance, and the long-term appeal of realizing your dream.
I approached compiling the way I would suggest anyone start when contemplating a renovation. I dug into years of real estate sale and construction data from the last few decades to see how costs have fluctuated compared to buyer demand for certain home features. These were the resounding renovation losers, not worth the money.
