These states saw the highest increases in home prices in 2023. See where New Jersey ranks (2024)

Home prices have increased across most of the country over the last year, but some states saw a more significant increase than others.

New Jersey experienced the fourth-highest percentage increase in home prices across the nation over the last year, at 7.43%, according to a recent study by the New Jersey Real Estate Network, which analyzed data from Zillow from January 2023 to December 2023.

Additionally, New Jersey had the second-highest home price increase by dollar amount. With the average home price now estimated to be about $495,469, houses across the state saw about a $34,283 increase from January 2023.

"The spike in housing prices across certain states results from a mix of factors," reads the analysis. "Economic vitality, job growth and population influx can drive demand, while supply constraints and low interest rates can amplify the increase in prices."

New Jersey ranked behind No. 1 Connecticut, with a 9.56% increase, as well as No. 2 Maine and No. 3 New Hampshire, with 8% and 7.49% increases, respectively.

According to national housing market data compiled by Compass Real Estate, the median home sale price across the country was up by 3.5% in November year-over-year, while the median sale price of condos and co-ops across the country was up by 8.6%. Home prices across the nation have seen a 54% appreciation rate over the last five years, far exceeding the inflation rate of about 22%.

On the opposite end, Louisiana experienced the biggest percentage decrease in home prices, at 2.19%. With the average home price estimated to be $195,356 in the state, home prices in Louisiana decreased by $4,370. Idaho, Texas, North Dakota and Nevada all saw home prices decrease in 2023, at 0.75%, 0.42%, 0.36% and 0.11%, respectively.

These were the top 10 states with the highest percentage increase in home prices during 2023:

Maddie McGay is the real estate reporter forNorthJersey.comand The Record, covering all things worth celebrating about living in North Jersey. Find her onInstagram @maddiemcgay,onX @maddiemcgayy, and sign up for herNorth Jersey Livingnewsletter.Do you have a tip, trend or terrific house she should know about? Email her atMMcGay@gannett