Every state in the West is booming, and the realtors keep parroting that it’s all the Californians moving in! Better be prepared to match their California prices! But look at this recent study by the Utah Foundation refuting that claim:



I think housing prices nationwide are on the rise due to a number of factors right now:

1) Foreclosure and eviction bans are tying up a large portion of homes that would otherwise be on the market, hence limiting supply.

2) Demographics. Boomers are staying in their large single family homes longer than previous generations which is limiting supply. Meanwhile the next largest generation in America (Millennials) are starting families and buying homes and creating demand.

3) Disrupted supply chains and tariffs causing an increase in construction material prices.

4) Strong tech economies outside of the coasts are creating good jobs that are not only bringing some people in but are giving locals a good reason to STAY put for the first time. Educated people used to leave the Intermountain west for better jobs on the coast. That’s no longer necessary.

6) Record low interest rates.

7) Speculators and investors in the residential market.

5) Buying hysteria. These other factors have created a volatile market causing desperate buyers to make offers they wouldn’t normally make which is driving home prices. Meanwhile, the volatility is causing many would be sellers to stay out, limiting supply.

There aren’t enough Californian refugees to be driving home prices this high in every Western city. The South is experiencing something similar and they’re blaming New Yorkers. I don’t think it’s that simple, however. We’re experiencing a housing shortage for a number of reasons creating a perfect storm of scenarios. Supply will eventually catch up to demand, but I’m not sure if prices come down or just level off.