Due to the COVID19 pandemic, global housing markets have had to deal with many unprecedented challenges. During the first few months of the COVID19 pandemic, most housing markets across the globe experienced major dips in activities. However, since 2021, global housing markets have experienced very strong recoveries, especially in terms of their prices.
Work from home policies have spurred many people to rush to buy new homes. Unfortunately, some of them have been priced out of the market. As home prices continue to creep up, it’s vital for aspiring homebuyers to know the extremes. So, which cities rank top for house-price growth? Here’s the list –
Montreal saw the strongest growth in house prices of all the major cities in the world. House prices in the Canadian city increased by 39%. Before COVID19, the average price of a house in Montreal was $286,099. After COVID19, it’s $ 397,360 – an increase of over $110,000 in less than 18 months. Vancouver and Toronto have long been Canada’s most expensive cities. But, post-COVID19 Montreal is just as expensive.
- Los Angeles
Rising inflation in the US has inflated property prices in most states and cities. But, no city in the US has experienced more increases in house prices than LA. Many Californians received government stimulus checks in 2021. These measures were aimed to reduce the economic carnage caused by the COVID19 pandemic.
But they also inflated the local property market. Before COVID 19, the average price of a house in LA was $538,500. In the post-pandemic world, the average price of a house in LA is $725,000. That’s an increase of $186,500 (34.6%) in less than 18 months.
With a 2.1% rate of annual population increase, house prices have hit record highs in many cities in New Zealand. Auckland, the country’s biggest housing market has experienced the highest property price increases in recent times. Before COVID19 hit NZ, the average price of a house in Auckland was $ 606,267.
In post-COVID19 Auckland, the average house price is $ 801,388, a $ 195,121 increase (32.2%) in two years. On a monthly basis, home prices in Auckland were up by 3.7% every month. Along with Auckland, five other regions in NZ have experienced record property price increases. They include – Canterbury, Northland, Waikato, West Coast, and Hawke’s Bay.
Real estate experts are anticipating steady price increases across Toronto’s real estate market in 2022. The city is a major hub for inter-provincial and international migration. In terms of annual population increase, Canada is only second to New Zealand. Many new immigrants in the country are settling in Toronto.
That’s why before COVID19 hit Toronto, the average price of a house in the city was $ 666,044. After the pandemic, the average property price in Toronto is $865,876. That’s a $ 199,832 (30%) increase in the past 18-24 months.
Manchester’s property prices are expected to increase sharply over the next ten years. In the past ten years, the average property value in the English city has inflated from £139,783 to £296,536. Before COVID 19, the average price of a house in Manchester was $283,933.
In post-pandemic Manchester, the average home price is $339,096. That’s an increase of $55,163 (almost 20%) in less than 24 months.
Some other cities that have experienced recent increases in property prices include –
- Vancouver: From $801,634 before the pandemic to $933,875 currently – a 16.5% increase.
- Shenzhen: From $ 1,092,480 before the pandemic to $1,241,040 currently – a 13.6% increase.
- Sydney: From $859,779 before the pandemic to $963,050 currently – a 12% increase.
- Perth: From $387,900 before the pandemic to $425,630 currently – a 9.7% increase.
Property prices are expected to continue booming in these leading global cities, long after the pandemic is over.