If you are considering renting a new place or investing in a property — we can help. The housing statistics we compiled have all the information on the market you need before making up your mind.
Besides all the uncertainty the pandemic brought into our lives, it also gave us some new perspectives on life. As people began spending more time in their houses, working, or simply socially distancing, many of them found the motivation to start looking for their dream home.
So, if you are one of them, this article will provide you with valuable insight into the housing market.
Advantageous Housing Trends (Editor’s Picks)
- The homeownership rate in 2020 was over 65%
- There is a 9% increase in new listings compared to the previous year
- In 2021, houses sell 32 days faster than before
- The average search for a new home takes around eight weeks
- Real estate agents are responsible for 88% of the house sales
- Current housing market trends show that the average monthly rent is $1124
- Millennials/ Gen Y make up 38% of all homebuyers in the US
- Only 6% of graduate students live on-campus
Basic Housing Market Data & Trends
This section will provide you with info that you’re probably curious about — what percentage of people own a home, if house prices are rising or declining, and how many new listings there are, compared to previous years.
You’ll also find much-needed housing data about the process of selling or buying — such as the average time a house spends on the market or how long a house search lasts.
1. The homeownership rate in 2020 was 65.8%.
Data for 2020 shows an increase in the homeownership rate by 0.7%. The highest rate ever recorded was in 2004 — right before the recession —over 69%.
2. Home prices rose higher than rents in 83% of the US counties by the end of 2020.
In most states, the rate of home prices increased more than the wages. Nonetheless, housing market stats reveal that in 63% of the counties, people still believe it’s a better investment to buy a house than to rent.
3. New listings in 2021 are up by 9%.
Besides more buyers, the increased number of sellers is another housing trend of 2021. With spring being among the most popular times to put a house on the market, the number might get even higher.
4. Houses are spending 32 days less on the market in 2021.
According to experts, people want to make the most out of the low mortgage rates before the market bounces back, so the sales happen faster and more often.
5. The typical house search takes around eight weeks.
According to the NAR national housing statistics, buyers consider approximately nine places before they find the one that’s perfect for them. Generally, five out of those nine houses are looked at only online.
6. 15% of home sellers in the US relocate to be closer to their families.
The most common reason for selling a house is to be closer to family and friends. Real estate trends show that 12% of the sales are due to a change in the family situation. In addition, 14% of the people want a new house because of the small size of their current one. The safety of the neighborhood is also a common concern.
7. 1.3 million housing units currently belong to public housing.
(Office for Policy Development and Research)
Around 48% of the public housing are either small studios or one-bedroom apartments, and nearly 25% — two-bedroom homes, while 28% — have three or more bedrooms.
Home Sales Data by Zip Code
Have you ever wondered how different the housing prices are in various parts of the country? We have gathered some interesting stats on the most expensive and cheapest states to buy a house in.
Let’s take a look at the most surprising affordability indexes in the country.
8. West Virginia is the cheapest place to buy a house, with a median price of $113,000.
Besides West Virginia, the cheapest houses in the US are in Mississippi, Oklahoma, and Arkansas — with a median value of around $140,000 and less.
9. New York City has the worst affordability index in the US.
The affordability index is calculated by comparing the average annual income in a city with the median home prices. Real estate statistics by city reveal that the most affordable place is Augusta, Georgia.
10. One of the most expensive houses in the US costs $135,000,000.
The house is located in Woodside, CA, and is part of a 74-acre property, perfectly preserved since it was built in 1911. The property has 32 bedrooms, a tennis court, pools, and hiking trails, among the long list of amenities.
Housing Trends About Real Estate Agents
Undoubtedly, real estate agents are a vital part of any housing transaction. So, this section will reveal the popularity of real estate agents and websites, and the unexpected means of communication the agents use to reach clients.
11. 88% of the people buy a house through a real estate agent.
Housing market statistics 2021 show that the majority of home buyers use the help of a real estate agent. Surprisingly, around 73% of the buyers hired the first agent they contacted, and 91% say they would work with the same agent again.
12. 90% of real estate agents communicate with their clients via texts.
Real estate statistics reveal that many agents have adapted to the new communication ways. Emails are even more popular than texts — 94% of agents use this way of reaching out to the clients — and 34% use instant messaging.
13. The real estate website Zillow has 36 million visitors every month.
According to real estate stats, websites are the most accessible information source for house buyers. Besides Zillow, another popular site is Trulia, with around 23 million unique monthly visitors. The third most popular option is Yahoo! Homes, with an average of 20 million people browsing through the offers.
Housing Statistics on Rents
Renting is also an enormous part of the housing market. These stats will show you more about the average monthly prices and the demographics of renters in the US.
14. The average monthly rent in the US is $1124.
Housing price trends exhibit a constant increase in rent costs since the beginning of 2021. The price varies depending on the state, and research shows that the rent prices are much higher than the minimum wage.
15. The average rent for a studio is around $900.
Housing market trends by zip code show that rents vary depending on the state and the city. Approximately renters spend around $960 for a one-bedroom apartment, $1200 for a three-bedroom, and $1500 for a four-bedroom apartment.
16. 49% of renters in the US are under 30 years old.
It is not surprising that the majority of renters are under 30 years old. According to the latest housing market statistics on rents, only 9% of people over 65 years old are currently renting a place.
Millennial Housing Trends
Millennials make up a significant part of the homeowners. Let’s take a look into their housing choices and preferences.
17. Millennials make up around 60% of all first-time buyers.
The latest research shows that millennials take on an active role when searching for a house — choosing properties to visit and tracking real estate price trends. They also prove to be pickier with their choice of real estate agents and do thorough online research before committing.
18. Millennial/Gen Y buyers make up 38% of all homebuyers in the US.
NAR reports that technology plays a significant role in their home buying process — almost every millennial goes online to find information about the housing market before they begin looking for a house.
19. 47% of Millennials prefer to live in the suburbs.
Housing market trends of millenials’ purchases show that nearly half the people in their 20s and 30s choose to live out of town. Research has also indicated that most of the buyers that age prefer to have a bigger house. In fact, around 45% of homeowners in their 30s pay over $300,000 for their new property.
Student Housing Trends
This February, 10% fewer students enrolled in college and were looking for university housing. Nonetheless, it seems the student housing problem is not nearly resolved.
20. Around eight million students need near-campus housing every year.
Housing statistics confirm that student housing is constantly in demand, and that presents a great investment opportunity. Currently, the data shows that student housing in the West and South regions of the country will be in high demand this year.
According to the latest California real estate numbers, this comes as no surprise.
21. 90% of students place Wi-Fi first among practical amenities.
As most of them don’t have a significant income, students generally look for the cheapest houses in the US. However, the must-have functional amenities are the laundry machine for 78% of the students and a designated study area — for 45%.
22. Only 6% of graduate students live on-campus, show housing statistics.
It is safe to say that graduates are the target group for any investor looking to build near campus due to students’ transportation and access to campus resources issues. However, there is much for entrepreneurs to consider like safety regulations and affordable prices.
Housing Trends – The Bottom Line
Our statistics presented you with insight into today’s housing market in terms of buyer demographics, rent prices, and student housing and, hopefully, helped you get a better overview of the favorable house-buying situation.
Are you ready to make such a change in your lives? If you do, 2021 will be a perfect time for that. Don’t forget to take a look at the housing statistics by zip code to make sure buying a house is a good investment for your area.
People Also Ask
Approximately 5.6 million homes were sold in 2020 in the US. Experts predict a significant rise in 2021, with almost 6.5 million existing houses already being sold. In recent years, 2010 was the year with the lowest number of houses sold — 4.2 million, while in 2005, US buyers purchased over 7 million homes.
On the contrary, in March of 2021, the median house prices hit an all-time high — $370.000 — over 15% more than last year. However, experts expect that the prices will soon stop rising.
The COVID-19 pandemic caused high levels of unemployment, and the economy is too unpredictable for risky investments. However, mortgage rates are close to the record lows, which is something buyers should utilize, as well as the new working flexibility from home gives many people more location options.
Google reports an increase of 2450% in searches on whether the housing market will crash in 2022. Home sales data shows that the situation is very different from the 2008 crisis and is more likely to stabilize instead of crash.
Around 3.6% of the total number of homes in the US is worth more than $1 million — adding up to over 3 million houses. It comes as no surprise that a large number of these homes are in cities in California, as it is the biggest state.
Housing statistics indicate that rent prices are more likely to remain stagnant than to decrease. Experts expect that renters in the key markets, such as Atlanta, Phoenix, and Denver, might even have to spend a little extra on their rents.