Overall, home prices in the state climbed sharply during this period.
ft home as of a few years ago) is less than half the national average.
The data indicates a general upward trend in home prices over the past decade, punctuated by occasional declines.
Home Stratosphere and Zillow Home Value Index
Entering 2020, the COVID-19 pandemic injected both turbulence and opportunity into the market.
By 2021, Mississippi experienced frenzied buying similar to national trends: inventories hit record lows and prices accelerated.
Homes remained expensive, but sales volume slowed because higher monthly payments strained many working-family budgets.
Inventory levels in 2023 improved slightly from the extreme lows of 2021, but remained below normal.
Price growth flattened statewide in 2023 (with Mississippi home prices up a modest ~24% year-over-year).
These include everything from small starter homes in town to newer suburban houses with land.
For moderate-income buyers, older houses under 2,000 sq.
ft. in established neighborhoods often provided the best value.
Lower-income and rural buyers often chose manufactured homes due to their lower upfront cost.
Unlike many states, Mississippi has a limited supply of condominiums and townhomes, since most housing is low-density.
However, in urban pockets like downtown Jackson and in some coastal communities (e.g.
Biloxi/Gulfport), condos became an attractive option for downsizers and first-time buyers seeking low maintenance living.
During 20182023, condos and townhomes in Mississippi saw moderate demand.
Mississippis plentiful rural land and cheap older housing made such purchases feasible for under $150,000 in many cases.
), reflecting a slight shift in preferences toward rural living.
Regional Insights: Urban vs.
This region has been one of the fastest-growing in the state.
Consequently, home sales were robust and prices rose quickly.
For budget-conscious buyers, this area became a bit challenging, as demand pushed prices up.
Jacksons water system problems) dampened some buyers interest.
Homes in these suburbs frequently sold to move-up buyers and families looking for better schools.
During 20202021, the Gulf Coast saw a noticeable uptick in activity.
Remote work and the search for affordable coastal living brought an influx of newcomers into some Coast neighborhoods.
These areas have faced population loss and economic stagnation for years, and that continued through 20182023.
The pandemic-induced housing boom largely bypassed the Delta.
The primary reason is out-migration: young people leaving, few new jobs, and little demand for housing.
a family buying a home because its cheaper than rent), rather than by market frenzy.
College Towns
Mississippis college towns deserve special mention.
That growth rate made Oxford the fastest-appreciating city in Mississippi during that period.
move from a smaller starter home (or rental) into a larger home.
Ultra-low mortgage rates greatly increased affordability for those who could qualify.
Realtors across Mississippi reported that between mid-2020 and late 2021, move-up buyers were very active.
This trend slowed by 20222023 once rates rose existing homeowners then grew reluctant to lose their low interest loans.
But in the 201821 window, upsizing was a key trend that boosted the market for mid-priced single-family homes.
From 2018 to 2023, downsizing was a steady undercurrent in the market.
The motivation was often to cash out equity and reduce maintenance burdens.
The pandemic added new dimensions to downsizing: health concerns and proximity to family.
That said, downsizing can be tricky in Mississippi because theres a limited supply of senior-friendly housing (e.g.
single-story patio homes or condos).
By 20222023, this vacation-home wave receded as interest rates climbed and remote work patterns normalized.
These swings dramatically changed the math for buyers.
Conversely, the rapid rise in rates in 2022 put the brakes on.
Entering the period around 2018, Mississippi had a decent balance of housing supply.
But by 20202021, supply shrank drastically.
Years of underbuilding after the last recession caught up, and the surge of buyers quickly depleted listings.
This tight inventory gave sellers the upper hand, driving up prices as buyers competed.
It also meant budget buyers had to act fast and perhaps concede on wish-list items.
Constrained inventory disproportionately affects lower-priced segments, since thats where first-time and budget-conscious buyers concentrate.
The Mississippi Home Corporation (MHC) continued to be a key agency providing affordable mortgage programs.
Budget-conscious households essentially the vast majority of Mississippis homebuyers navigated these shifts with an eye on affordability.
Regionally, buyers flocked to growing suburban and exurban areas, while truly rural markets saw far less action.
This poses ongoing challenges for young and lower-income buyers.
Moving forward, trends like remote work could continue to benefit Mississippi by drawing new residents seeking affordable homes.
Conversely, economic headwinds or policy changes could dampen the markets momentum for budget buyers.
Budget-conscious households remained the heartbeat of Mississippis homebuying market, adapting to conditions as best as possible.
