US Home Prices Are Soaring: Which States Are Leading in Housing Appreciation?

Over the last five years, the U.S. housing market has been on quite a ride, with home prices jumping a whopping 48% from 2017 to 2022, according to our review of U.S. Census data. But it’s not the same story everywhere. The biggest jumps in home prices? They’re happening in states where more and more people are moving in.

Migration and home prices have indeed always been intrinsically linked, and even more so today as the current job market increasingly allows for flexibility in location. Yet, the pursuit of affordability often leads to a surge in demand in popular areas, inadvertently driving up home prices. This cyclical pattern of rising prices in desirable locations is increasingly evident in today’s housing market, spotlighting the evolving challenges and opportunities in real estate.

To see where home prices rose the most, we analyzed home price evolution at a state level over a five-year period (2017 to 2022) and came up with a ranking of the 10 states that saw the most dramatic change. We also looked at population change in these states as one of the determining factors of growing housing costs. Interestingly, the self storage sector is keeping pace with these residential trends too.

Some states that may not have grabbed the spotlight before are now in focus. Places like Idaho and Utah, often ranked lower in popularity indexes, have experienced surprising spikes in home prices over the past five years. Others, such as Georgia, Tennessee and North Carolina, are still seeing home values below the national average, yet they are experiencing some of the highest home price growth rates nationwide.

Check out our detailed rundown of the top 10 states with the biggest increases in home prices over the past five years. It’s a revealing look at the changing dynamics of the U.S. housing market.

1. Idaho

Suburb near Boise, Idaho

• Home price: $429K
• Five-year price change: 53%

Idaho is the unlikely and most likely unwilling winner of home price increases over the past five years. Home values in the state increased by no less than 53% between 2017 and 2022. This goes in line with the state’s positive population change over the same period, which at 13% is also topping the national charts. Much of the population growth comes from state-to-state movers, with Idaho seeing a net migration of over 14K people in 2022 alone. Although homes in Idaho are well above the national average in terms of price, relocating here from nearby states such as California or Washington, which are the state’s main suppliers of incoming migration, is still a good deal in terms of housing costs.

The self storage sector in Idaho is definitely keeping pace with these demographic changes. Relocating is one of the main demand-drivers behind self storage, and Idaho delivers, with an average of almost 17 square feet of storage space per capita, more than double the national benchmark of seven square feet of space per capita. The state’s self storage inventory expanded by 20% between 2017 and 2022, with construction activity going on in 2023 as well, albeit at a slower rate compared to previous years.

2. Utah

Townhomes in Utah Valley

• Home price: $502K
• Five-year price change: 49%

Utah is second nationally in terms of home value increase over the five-year period analyzed, with homes 49% more expensive now than five years prior. The state also has the lowest housing per capita value among all the other U.S. states, at just 0.36, so it’s hardly surprising that home prices are on an ascending trend. Moreover, Utah is second nationally for population growth during the same interval, registering an impressive 9% increase in population. With its rapidly expanding economy, stunning landscape and numerous outdoor recreation opportunities, Utah is attracting newcomers mainly from nearby states such as California and Washington.

Although the average home value in Utah now stands at over $500K, significantly higher than the national average of $319K, newcomers from these states will still benefit from a friendlier real estate market compared to their originating state. On top of that, Utah is teeming with employment opportunities — the unemployment rate stands at a very low 2.6%, so newcomers shouldn’t have a hard time finding a job locally. Moving to Utah is made even easier by the thriving self storage sector, which amounts to over 10 square feet of storage space per capita.

3. Arizona

Newly built homes in Arizona

• Home price: $399K
• Five-year price change: 45%

A regional powerhouse of economic growth over the past few years, Arizona also experienced a marked uptick in home prices of 45%. The current average home value in the state stands at over $399K, compared to around $275K in 2017, driven up by population growth among other factors. Arizona’s residents increased by 4% between 2017 and 2022, with 2022 alone seeing a net gain of over 77K people from migration. Arizona’s self storage sector experienced the highest inventory gain among the top 10 states with the steepest home price increases, by 28% between 2017 and 2022. And self storage construction kept marching in 2023 as well, adding over 1.6M square feet of new space to the local inventory.

4. Washington

Homes near Bellevue, Washington state

• Home price: $564K
• Five-year price change: 42%

Anchored by major tech hub Seattle and its other cities, such as picturesque and economically thriving Tacoma and Spokane, Washington state has experienced a 42% increase in home prices over a five-year period. In fact, Washington features the most expensive homes in our top 10 states with the steepest price increases, at over $564K. The state’s population increased by 5% during the same period. Even as Washington is confronting a red-hot real estate market, particularly around its busy urban centers, for a good while now, it’s still attracting new residents. The state’s thriving tech industry and its unique outdoor attractions are enticing for professionals and young families in search of economic opportunities and an agreeable lifestyle. Washington also has the lowest self storage inventory per capita among the top 10 states in our ranking, at around eight square feet. However, the sector is working hard on adding more storage space. The total inventory increased by 24% from 2017 to 2022, a trend that continued in 2023 as well.

5. Georgia

Suburb near Atlanta, Georgia

• Home price: $295K
• Five-year price change: 41%

 This Southern state is making strides lately in terms of economic development and population growth — however, home prices are following the same trajectory. Homes in Georgia are now 41% more expensive than five years prior, but they are still under the national average. The average home value in Georgia stands at $295K, compared to a national value of almost $319K. Georgia’s still-friendly housing market and the many job opportunities in the area act as magnets for incoming migration — the state experienced a net influx of 74K newcomers in 2022 alone. The state’s population grew by 5% between 2017 and 2022. People in the process of moving to Georgia, or moving locally within the state, can make use of a strong self storage sector that boasts over nine square feet of storage space per capita.

6. Nevada

Las Vegas suburb, Nevada

• Home price: $432K
• Five-year price change: 40%

Home prices in Nevada saw a significant 40% jump over a five-year interval, hardly surprising considering the state’s 7% population growth over the same period. The cost of purchasing a home in Nevada is currently hovering around $432K, a good $110K more than the national average. One significant draw for incoming migration is the state’s favorable tax environment, as Nevada imposes no state income tax and a property tax of just 0.48%, much lower than the national average of almost 1%. This is making the state an appealing destination for those looking to maximize their income. Those relocating to Nevada can make the transition easier by using self storage until they manage to find their dream home — the local inventory translates into 11 square feet of storage space per capita.

7. Tennessee

Home in Nashville, Tennessee

• Home price: $283K
• Five-year price change: 39%

Tennessee still boasts an affordable housing market, with home values in the area hovering around $283K, even after a 39% increase in prices over a five-year period. This makes Tennessee more and more attractive for incoming migration, with the state experiencing a 5% population growth over the period analyzed. In 2022, Tennessee registered a net gain of almost 47K new residents from domestic migration alone. Those relocating to Tennessee can count not only on affordable housing options but also on a self storage sector that helps newcomers streamline the moving process. The local self storage inventory in Tennessee increased by 26% between 2017 and 2022, and more space was added in 2023 as well, resulting in about 9.6 square feet per capita.

8. North Carolina

North Carolina suburb

• Home price: $277K
• Five-year price change: 37%

North Carolina registered a 37% increase in home prices over the past five years, to almost $277K — which is still quite affordable when compared to the national home price. The state’s robust home price increase mirrors its 4% population growth during the same period. Strong job growth and economic development in certain areas of North Carolina, particularly in cities like Raleigh, Charlotte and Durham, as well as a relatively lower cost of living compared to some other states and a generally attractive quality of life, are the main draws of the state. North Carolina saw a net gain from migration of almost 79K people in 2022. The state’s demographic changes are impacting not only the residential sector but also self storage, which keeps expanding to keep pace with the growing population. North Carolina’s self storage inventory increased by 19% from 2017 to 2022, with 2023 delivering an additional 2.2M square feet of new storage space.

9. Colorado

Row of condominiums in Colorado

• Home price: $530K
• Five-year price change: 34%

Home prices in Colorado are currently hovering around $530K, well above the national average of $319K, following a 34% increase over the five-year period we analyzed. Colorado’s diverse and thriving economy, including industries like technology, health care and energy, has created numerous job opportunities as well as an average personal income of around $63K. Thus it’s easy to grasp why homes in Colorado are expensive and getting more so. On one hand, the state’s population increased by 4% between 2017 and 2022. On the other hand, economic growth and high incomes are naturally driving home prices up. Coloradoans intent on saving money on housing have the option of picking a smaller home and compensating for the lost space at home by renting self storage. A 10’x10’ unit in Colorado rents for around $120 per month.

10. South Carolina

Suburban neighborhood in South Carolina

• Home price: $249K
• Five-year price change: 33%

Just like its northern counterpart, South Carolina still boasts home prices well below the national average, with the average home price in the state just under $250K. However, the prices increased by a third between 2017 and 2022, a trend that might continue for the following years as well. South Carolina is becoming one of the most attractive moving destinations in the country. The state’s population grew by 5% over the period we analyzed, and 2022 saw a net gain of almost 69K new residents from domestic migration. South Carolina’s self storage industry is on an ascending trend as well in terms of new development, ensuring access to a widely needed service for those in the process of moving. The local inventory increased by a significant 27% during that same period, the most out of the top 10 states with the steepest home price increases.

Below, you can review the increases in home prices and the developments within the self-storage sector across all 50 states and the District of Columbia:

States witnessing a surge in population often grapple with an increasingly competitive housing market, leading to an uptick in home prices. This also poses challenges for locals who may face hurdles in accessing affordable housing. Striking a delicate balance between fostering growth, accommodating newcomers and ensuring housing remains within reach for existing residents is an ongoing challenge that policymakers and communities must navigate together.