The onset of the COVID-19 pandemic five years ago was the catalyst for massive changes in the housing market. Since then, home values across the U.S. have surged by 45.3%, packing more than a decade’s worth of typical growth into just five years.

The pandemic prompted many to rethink what is most important about their homes. As remote work became more commonplace during the pandemic, Americans shifted their priorities away from quick office access and toward affordable, sun-soaked markets. The first wave of remarkable demand (2020 to early 2022) focused on the Sun Belt — markets such as Austin, Phoenix, and major metros in Florida.

But mortgage rates that doubled in 2022 brought hot competition to even less expensive (and less temperate) areas across the Midwest and Great Lakes regions, and to more affordable alternatives to costly coastal metros – think of Hartford instead of New York City, or Providence instead of Boston. 

The latest Zillow data shows the strongest annual home value growth currently is in San Jose (8.1%), Providence (6.7%), Cleveland (6.6%) and Hartford (6.3%).

Home Values

Across the U.S., home values are up 45.3% since February 2020, just before the pandemic. Historically, home values grow roughly 4% a year, on average. That means 11 years of average growth was packed into just five years. 

Homeowners in Miami were the ultimate winners — Miami metro area home values have grown 61.1% since February 2020, the biggest gain of any of the 50 largest metros. Charlotte (+58.2%), Hartford (+58.1%), Tampa (+58%) and San Diego (+55.6%) round out the top five. 

Markets where home values have grown the least are New Orleans (+3%), San Francisco (+22.7%), Minneapolis (+27.3%), Pittsburgh (+31.2%) and Baltimore (+31.2%). 

Of course, while homeowners in the markets with the biggest home value growth have enjoyed strong equity gains, that means buyers face an increasingly tall affordability hurdle. Between home value growth and higher mortgage rates — which are now roughly double what they were five years ago — the monthly payment on a typical U.S. home has grown by $1,032 since February 2020, or 80.6%.¹ In 12 markets, that monthly payment has more than doubled. 

Home values in Austin took the wildest ride during the pandemic. Austin easily eclipsed any other major market in terms of the highest year-over-year growth reached during the early pandemic frenzy, with home values growing 40.3% in the year ending August 2021. However, Austin also experienced the biggest year-over-year decline as rising mortgage rates chilled buyer demand, with home values falling 14% in the year ending July 2023. A huge number of new homes were built during this period, helping rebalance the market. 

The only other markets to see home value growth above 30% in one year were Tampa (+30.6% in the year ending June 2022) and Raleigh (+30.2% in the year ending May 2022). Other than Austin, the only markets with at least a 10% home value decline in one year were in the California Bay Area — in the year ending May 2023, San Francisco home values fell 12.1% and San Jose home values fell 12%. 

Rent Prices

U.S. rents have grown 33.4%, or nearly $500 a month, since the start of the pandemic. Once again, Miami leads the way with 54.1% growth, or $945 a month. Just behind are Tampa (+53.1%), Providence (+50.4%), Riverside (+45.3%) and Hartford (+44.4%). 

On the opposite end of the spectrum is San Francisco, where rents have grown just 6.8% since February 2020. San Jose (+10.2%), Minneapolis (+15.9%), Austin (+17.6%) and San Antonio (+19.4%) are the only other markets where rent growth is below 20% during that period. 

In New York City, median asking rents have increased 24.1% since the start of the pandemic to $3,600, according to Zillow’s New York City brand, StreetEasy. The Bronx saw the steepest rise in rents (42.3%) due to a substantial increase in new development in the borough in recent years. Meanwhile, in Queens, where rents remained relatively stable in the years preceding the pandemic, rents began rising sharply starting in 2022 as growing affordability challenges in Brooklyn and Manhattan pushed more renters to consider their options in the World’s Borough. The median asking rent in Queens has increased 27.7% since the start of the pandemic to $3,000.

Outside of New York City, nationwide rent growth has been fueled by single-family rents, while apartment rent growth has been modest by comparison. Would-be home buyers who have faced growing affordability hurdles are sticking in the rental market longer — between 2023 and 2024, the median age of a renter jumped from 40 to 42, according to Zillow’s Consumer Housing Trends Report. Single-family rents have grown 41% since the pandemic started, and ended 2024 a record 20% higher than the typical rent for a multifamily unit. 

Meanwhile, multifamily rents have grown 26.5% since February 2020 — strong growth to be sure, but a far cry from the pace of single-family rent growth. A deluge of multifamily construction, which reached a 50-year high in late 2024, has softened rent growth for apartment units.

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