Key Details:
- The latest Zillow report reveals a 45.3% rise in U.S. home values since February 2020, with Miami, Austin, and New York City seeing the highest growth in both home values and rent prices.
- Zillow’s report also highlights shifts in million-dollar homes, construction trends and homebuyer preferences.
In just five years, home values have seen a decade’s worth of typical growth, rental prices have skyrocketed, and the way buyers shop for homes has shifted.
If you’re a real estate agent, understanding these changes is key to helping your clients navigate this new landscape. Let’s dive into the latest Zillow analysis, which sheds light on how five post-pandemic housing trends have reshaped the market.
Byron Lazine broke it all down on today’s Hot Sheet:
Read on for the highlights.
1. Home Values and Rent Prices
Since February 2020, U.S. home values have increased by 45.3%—more than a decade’s typical growth in just five years.
The following markets have seen the most home value growth in the past five years:
- Miami, FL—61.1% home value growth since February 2020
- Charlotte, NC—58.2%
- Hartford, CT—58.1%
- Tampa, FL—58%
- San Diego, CA—55.6%
- Providence, RI—55.4%
- Atlanta, GA—53.9%
- Orlando, FL—53.1%
- Buffalo, NY—52.8%
- Phoenix, AZ—52.6%
And here is where rent prices have risen the most:
- Miami, FL—54.1% rent growth since February 2020
- Tampa, FL—53.1%
- Providence, RI—50.4%
- Riverside, CA—45.3%
- Hartford, CT—44.4%
- Cleveland, OH—42.1%
- Virginia Beach, VA—42.0%
- Indianapolis, IN—41.5%
- Buffalo, NY—39.9%
- Cincinnati, OH—39.9%
2. Million Dollar Homes
The number of $1M+ homes has nearly doubled since 2020. Today, nearly 1.65 million homes are valued at $1 million or more—an increase of 989,000 since the pandemic began.
But while prices have gone up, square footage has been trending in the opposite direction. The typical $1 million home is now 70 square feet smaller than it was five years ago, averaging 2,388 square feet.
In places like Hartford, Indianapolis, and Nashville, buyers are losing more than 1,000 square feet at this price point, while those house hunting in Buffalo or Raleigh are missing out on nearly 999 square feet compared to 2020.
3. Construction Trends
To keep up with demand, the housing industry has ramped up production, with over 1 million single-family homes started in 2021—the first time this milestone was surpassed since 2007.
Top metros for single-family home permits since 2020 include:
- Houston
- Dallas
- Phoenix
- Atlanta
- Austin
Builders are also focusing more on higher-density housing options, such as townhomes and condos, to keep prices affordable amidst rising land and material costs.
4. What Buyers Want: Trends vs. Fads
The pandemic has left its mark not only on home prices but on buyer preferences, too. Here are some key takeaways:
Outdoor features remain highly desirable. In New York City, searches for properties with outdoor space surged by 128% in 2024. And guyers are willing to pay at least 2% more for homes with:
- Outdoor kitchens
- Pizza ovens
- Bluestone patios
However, some pandemic-era home features have fizzled out, including:
- Cloffices (closet offices)
- Zoom rooms
- Office sheds
- Spaces designated for exercise bikes
5. Virtual Home Shopping
According to Zillow, homebuyers are spending less time touring homes in person because they can now get a way better feel for the space online. Zillow’s 3D Home tours have quadrupled since 2022, and 7 in 10 buyers say these tools give them a better sense of a home than static photos.
In addition, 54% of buyers said they toured a home in person only to realize it wasn’t a fit in 2020. That number has dropped to 50%, and the number of people attending five or more open houses has fallen by more than half.
Applying This Data to Your Business
As a real estate agent, these insights present both opportunities and challenges. Here’s how you can apply the data to your advantage:
- Leverage AI and digital tools to make home shopping more efficient. Offer virtual tours, 3D walkthroughs, and other online resources to reduce time spent touring homes in person. Lean into AI tools that help you provide a better experience for your clients.
- Emphasize the long-term value of outdoor features. As demand for outdoor kitchens and patios remains high, highlighting these features could make your listings more appealing and valuable.
- Help clients navigate price increases by focusing on affordability in key metro areas. Understanding where home values and rents are increasing the most can help your clients make smarter decisions about where to buy or rent.
The real estate landscape has changed significantly since 2020. Are you keeping up?
