Home Values Up 6.5% in 2022
By Kelly Leighton | Mar. 2, 2023 | 2 min. read
The total value of properties in the U.S. was $45.3 trillion at the end of 2022.
According to Redfin, that is down 4.9% from June 2022, when home values reached a record high of $47.8 trillion. However, it is a 6.5% increase from the end of 2021. Home prices have fallen from record highs in June, leading to overall value falling as well. The report found that home prices dropped 11.5% from May 2022 to January 2023. However, home prices were up 1.5% from January 2022 to January 2023. Additionally, the total value of homes remains above pre-pandemic levels. Home values are up about $13 trillion from February 2020.
For Pennsylvania, the median existing home sales price in 2022 was about 8% higher than the median price for 2021 and 21% higher than 2020, according to a report prepared for the Pennsylvania Association of Realtors®.
Values of homes in suburban areas increased higher than those in urban areas. Year over year, suburban home values increased 6.4%, reaching $25.4 trillion. Values of homes in urban areas increased just 2.5% to $10.8 trillion. Rural home values increased the most, rising 8.5%, reaching $6.2 trillion in 2022.
Millennials saw their home values increase the most, jumping 26.7% year over year, reaching $5.6 trillion by the third quarter of 2022 (the latest data available). Generation X’s home values increased 18.4% to 13.9 trillion, while baby boomers saw their home values increase 12.9% to $18.1 trillion. The silent generation was the only one to see home values decrease, dropping 6.7% to $4.4 trillion, as members die or relocate to retirement homes.
Despite continuing concerns for environmental disasters, homes in high-risk flood areas saw their value increase 8.1%, compared to those in low-risk areas, where home values only increased 5.5%. Values of homes with high heat risk grew 7.3%, while those with low heat risk only grew 1.9%. However, homes in high-risk drought areas only rose 3.7%, while those in low-risk drought areas rose 6.6%. Additionally, homes more likely to be impacted by fires saw their value rise 4.9%, while their low-risk counterparts had values rise 4.9%.
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