Differences in House Price Appreciation

State-by-state differences in house price appreciation
click for interactive map

View on GeoFRED


While we await the FOMC’s next interest decision, have a look at the the map above: It shows how the broad variations in housing appreciation . over time. New York and California stand out, reflecting the higher paying jobs — and higher structure– these state economies have.

Here is FRED:

It’s no secret house prices differ across the U.S. There are also large differences in how these prices change over time. In the short-term, the data include a lot of noise and temporary regional peculiarities. Over the longer haul, though, clear trends can emerge. The map shows a price index for all house transactions: The index was set to a value of 100 in the first quarter of 1980, and the map shows the index values as of the third quarter of 2017.

So, we can see how house prices have increased over the past 37 years. Keep in mind this is a nominal index and that price increases are expected everywhere, given general price inflation. For comparison, an index value of 316 in 2017:Q3 would reflect price increases that have exactly kept pace with the consumer price index. For example, house price increases in Missouri and New Mexico (index values of 317) are nearly even with inflation.

Fascinating stuff . . .

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