Tennessee Home Values Soared During Pandemic

By Samuel Stebbins [24/7 Wall St. via The Center Square] –

The housing market has been red hot during the pandemic, with home prices hitting record highs up until a few months ago. More recently, surging mortgage rates have put some pressure on the housing market, slowing the climb in housing prices. That could be good news for buyers, though home prices remain considerably higher than they were in 2019 after surging in the two years since.

Nationwide, the average median home value rose 17% between 2019 and 2021, according to data from the 2021 and 2019 American Community Surveys from the U.S. Census Bureau. During that time, median household incomes grew a far smaller 6%. That gap has made homes, especially in some areas, more unaffordable.

Tennessee is one of the 23 states where home values rose faster than average during the COVID-19 pandemic. The typical home in the state was worth $235,200 in 2021, compared to $191,900 in 2019. The 22.6% increase ranks as the 11th highest among states.

As was the case nationwide, home value growth outpaced income growth in Tennessee. The typical household in the state earned $59,695 in 2021, up just 6.5% from $56,071 in 2019.

Population growth can fuel housing demand and push prices up – and over the same period, Tennessee’s population grew by 2.1%.

All data on income, population, and home value are one-year estimates from the U.S. Census Bureau’s American Community Survey from 2019 and 2021.

Rank	State	Increase in home value, 2019-2021 (%)	Median home value in 2021 ($)	Median home value in 2019 ($)	Increase in median household income, 2019-2021 (%)	Increase in population, 2019-2021 (%)
1	Idaho	44.7	369,300	255,200	9.0	6.4
2	Arizona	31.4	336,300	255,900	11.3	0.0
3	Utah	27.7	421,700	330,300	4.8	4.1
4	Montana	27.3	322,800	253,600	10.7	3.3
5	Maine	25.7	252,100	200,500	9.9	2.1
6	Washington	25.3	485,700	387,600	7.1	1.6
7	Georgia	23.3	249,700	202,500	7.4	1.7
8	Rhode Island	23.0	348,100	283,000	4.0	3.4
9	New Hampshire	22.7	345,200	281,400	13.5	2.2
10	North Carolina	22.6	236,900	193,200	8.1	0.6
11	Tennessee	22.6	235,200	191,900	6.5	2.1
12	Oregon	19.2	422,700	354,600	6.7	0.7
13	Arkansas	19.2	162,300	136,200	7.3	0.3
14	South Dakota	18.9	219,900	185,000	11.1	1.2
15	South Carolina	18.7	213,500	179,800	5.5	0.8
16	Nebraska	18.6	204,900	172,700	5.7	1.5
17	Florida	18.6	290,700	245,100	6.5	1.4
18	Texas	18.5	237,400	200,400	4.6	1.8
19	New Mexico	18.3	214,000	180,900	3.9	0.9
20	Colorado	18.1	466,200	394,600	6.6	0.9
21	Missouri	18.0	198,300	168,000	7.7	0.5
22	Michigan	17.4	199,100	169,600	6.6	0.6
23	Nevada	17.4	373,000	317,800	4.7	2.1