California Housing Market Projections: Average Home Value to Exceed $1 Million by 2030
California Home Values Expected to Exceed $1 Million by 2030, Study Finds
A recent study by RenoFi, an online company specializing in home loans for renovation projects, has projected that the average home in California will be valued at more than $1 million by the year 2030. This prediction comes as California has outpaced the national average for increasing home prices over the past decade, with a 78 percent growth in home values.
Currently, the average home value in California stands at $598,000, up from $331,000 in 2010. The state is second only to Hawaii as the most expensive state in which to buy a home, but RenoFi’s projections indicate that California will take the top spot by 2030.
In comparison, housing prices nationwide have increased by 48.5 percent since 2010, with the average cost of a home rising from $173,000 to $257,000. The national average home price is expected to reach $382,000 by 2030.
Several large California cities are also expected to see significant increases in average home prices over the next decade. For example, San Jose, currently with the second highest average home value in the state at $1,060,000, is projected to reach $2,251,700 by 2030. Meanwhile, San Francisco, the most expensive city in California and the country, will see its average home value rise to $2,612,000 by 2030.
Despite the economic impact of the coronavirus pandemic, home prices have continued to rise. The average home value in the U.S. increased by 2.8 percent between March and September, reaching $257,000. California saw slightly higher growth at 3 percent over the same period, with San Jose experiencing the highest increase in the country at 6.75 percent.
In Southern California, the median home price rose to a record $612,750 in September, marking the fourth consecutive month of setting a new record. Home sales in the region were also up 22 percent over August, indicating a strong housing market despite the challenges posed by the pandemic.
Overall, the housing market in California is expected to remain robust, with home values continuing to rise steadily over the next decade. As the state becomes increasingly expensive for home buyers, it will be interesting to see how this trend impacts the real estate landscape in California.