In most places, American home values have grown steadily over the past few decades. However, some cities fared much better than others—particularly Austin, Texas.
Of 400 cities ranked by average home price growth since 1998, Austin ranks first, according to SmartAsset recent study. Across all metro areas, home values increased an average of 154% from the first quarter of 1998 through the fourth quarter of 2022.
However, home values in Austin have increased 354% over the past 25 years. It is one of only eight cities where home values have increased by 300% or more in that time.
The rest of the 15 markets that are ranked by price growth are mostly large coastal cities in California and Florida.
Austin was a thriving tech hub A migration hotspot at the height of the pandemicbut home values in the city were already steadily rising for more than a decade.
Followed by Bend, Oregon, a small mountain town known for its access to outdoor activities like skiing and hiking. The city’s growing population exacerbated a pre-existing shortage of homes, which it exacerbated Pushing home prices up.
Boise, Idaho Another popular destination for immigration During the height of the pandemic, but like Austin, prices had actually been going up for years—before it became known as “Zumtown.” While home prices in this market have declined recently, they are still up 306% over the 25-year period.
Overall, California dominated the rankings, with eight of the top 15 cities for home price growth. Considering that the state has The largest housing shortage in the countryUnsurprisingly, failure to meet demand is driving up existing real estate prices, especially in Los Angeles and the San Francisco Bay Area.
Florida home prices have also grown steadily over the years, with Miami and Naples occupying the top 15 price growth rankings.
Not all homes were cash cows, however, especially in Rust Belt states like Michigan, Illinois, Indiana, and Ohio. In some cities, home values have increased by an average of 80% or less since 1998.
Last on the list is Montgomery, Alabama, where home values have grown at a rate of nearly 60%.
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