The typical U.S. home price hit $287,148 in May 2021, a 13.2% increase from May 2020, according to a new report from Zillow. That's a record rise since the company started collecting the housing price data in 1996.
The cities experiencing the biggest price hikes include Austin, Texas, which saw a 30.5% increase over 2020; Phoenix, which was up 23.5%; and Salt Lake City, with prices climbing 20.6% in the same time frame. Collectively, typical prices grew 10% or more in 46 of the U.S.'s 50 largest metros.
House buyers can expect prices to keep climbing in the year to come: Zillow economists are forecasting increases of 14.9% by May 2022.
Prices have been high for a variety of reasons, most notably low mortgage rates, low supply and increased demand as people search for more space mid- and post-pandemic.
One bright spot: Inventory increased last month for the first time since July 2020, per Zillow's report, which is a positive development for prospective buyers.
Still, listings are lasting just six days on average, a record low, the report says. In some places, including Kansas City, Missouri, and Columbus, Ohio, homes are lasting just three days on the market before the seller accepts an offer, on average. There might be slightly more inventory, but the market is still red hot.
Rents are also up
It's not just home prices: Rents are also up year-over-year, increasing 5.4% from last May. Typical rent is now $1,747 per month across the U.S.
The areas with the biggest increases year-over-year include Boise, Idaho; Phoenix; Spokane, Washington; Las Vegas; Riverside, California; Stockton, California; Fresno, California; and Albuquerque, New Mexico. All saw typical prices increase more than 15%.
That said, rents in some large coastal metros are lower compared with a year ago, including Boston, New York, San Francisco, Washington, D.C. and San Jose, California.
Sign up now: Get smarter about your money and career with our weekly newsletter