Since February 2020, U.S. home values have increased by an astonishing 45.3%, packing over a decade’s worth of typical growth into just five years.
Miami has led the charge, with both home values and rents rising more than in any other major metro area. Tampa and Hartford also rank among the top five for price growth since the pandemic began.
Austin experienced the most dramatic market swings. In the year ending August 2021, home values in the Texas capital surged by 40.3%, outpacing every other metro. But as mortgage rates rose and new construction increased supply, prices cooled significantly, with home values dropping 14% in the year ending July 2023. Despite this, Austin home values remain 37.8% higher than they were before the pandemic.
In New York City, rents have climbed 24.1% since early 2020, with the median asking rent now at $3,600. The Bronx saw the sharpest increase (42.3%), while Queens rents surged as affordability in Brooklyn and Manhattan pushed renters to consider alternative areas.
The rapid appreciation in home values has propelled nearly a million more homes into the $1 million-plus price range. There are now approximately 1.65 million million-dollar homes nationwide – an increase of 989,000 compared to pre-pandemic levels.
The pandemic reshaped buyer preferences, prioritising functionality over aesthetics. Outdoor features remain in high demand, with homebuyers willing to pay at least 2% more for properties with outdoor kitchens, pizza ovens, and bluestone patios.
Even in New York City, rental searches for outdoor spaces increased by 128% last year, according to Zillow’s New York City brand, StreetEasy.
However, some pandemic-era home trends proved fleeting. The “cloffice”, a closet converted into an office, has rapidly declined in popularity, appearing in half as many listings by the end of 2023.
Other short-lived trends include “Zoom rooms,” backyard office sheds, and designated spaces for exercise bikes, which have all seen a drop in demand.
The rise of virtual home shopping
Thanks to advancements in virtual touring technology, homebuyers are now spending less time touring homes in person. The share of Zillow listings featuring a 3D Home tour has quadrupled since late 2022, allowing buyers to better understand a property’s layout before stepping inside.
These innovations continue to evolve. Zillow Showcase, for example, leverages AI-powered listings with immersive media to provide richer insights into a home’s features. Listings with Zillow Showcase receive more views, saves, and shares compared to standard listings.
Demand for digital tools is growing, with 70% of buyers saying 3D tours give them a better sense of space compared to static photos—up from 52% in 2019. More buyers now wish for listings with 3D tours (62% in 2024 versus 46% in 2019), and fewer report wasting time on homes they would have skipped if they had a better grasp of the floor plan (50% in 2024 versus 54% in 2020).
The number of buyers attending five or more open houses has also dropped significantly, from 17% in 2020 to just 7% in 2024. Similarly, the share of buyers going on five or more private home tours has declined from 31% in 2020 to 15% in 2024.
*All prices in USD
