Learn more about the housing market in Wyoming

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life.  

Wyoming Housing Market Overview 

Wyoming has many commonalities with the general United States market. Wyoming and numerous other states have struggled with low inventory due to the hike in mortgage rates, discouraging homeowners from listing their property for fear of a newer, higher rate. Median home prices have climbed as well, making it difficult for homebuyers to attain a property that’s below 30% of their monthly income in a previously more-affordable Wyoming market. 

Inventory is still the main issue regarding this housing market. Wyoming’s unemployment rate and future job prospects indicate an economy that would support an improving housing market. However, the current environment is due mostly to pent-up demand, low housing inventory, and lower borrowing costs. 

Wyoming Housing Market Trends 

To understand the Wyoming real estate market, it’s important to keep up with trends. Let’s look at some key ones in Wyoming: 

Note: These statistics are based on Redfin’s monthly housing data from April 2024. 

Median Home Price 

The median home price in Wyoming as of April 2024 is $317,000, a 17.5% increase from last April according to recent Redfin data. The average home price for the nation is $438,610, so Wyoming is over $100,000 cheaper than the norm. 

Number of Homes Sold in April 2024 

According to Redfin, the number of homes sold in Wyoming rose 7.4% in May of 2024, and the number of homes for sale rose by 1.1%. It’s important to keep in mind that this number might be inflated compared to other months. Nationally speaking, sales usually peak during the spring and summer months and slow considerably in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%. 

Median Days on Market (DOM) 

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage. 

The current median days on market (DOM) in Wyoming is 15 days. The national average DOM rate is 32 days, so Wyoming has a significantly quicker market than the median for the nation.  

New Supply Statistics 

According to Zillow, Wyoming saw 789 new listings in May.  

As for new residential construction, Wyoming had around 4.68 new residential construction permits per 1,000 people in 2021. This rate seems relatively average for the nation—Wyoming is not experiencing a new construction boom, but it also isn’t stagnating.  

Property Tax Rate 

Wyoming’s average property tax rate is 0.56%, the fourth lowest in the nation. If a Wyoming homeowner’s home was valued at $252,800, they would pay $1,404.42 in property taxes in a year.  

In 2021, the average American paid around $1,682 in property taxes. By this metric, Wyoming is more cost effective than many other states in the nation. It’s important to point out that property taxes vary widely depending on the specific county of Wyoming and the value of the home, so this average rate may or may not be indicative of your situation. 

Foreclosure Rate in Q1 of 2024 

In the first quarter of 2024, there was one foreclosure filing per 2,507 housing units in Wyoming. This makes Wyoming the 31st ranked state for foreclosures in the nation.  

Hottest Local Markets in Wyoming 

1. Cheyenne

Cheyenne, Wyoming is famous for the railroad, which established the city and became a forefront of American industry. Cheyenne is also home to the Cheyenne Frontier Days, which is the largest outdoor rodeo and western festival in the world.  

While Cheyenne’s median home price has dipped slightly compared to last year (down only 0.029%), the housing market in Wyoming and Cheyenne seems to be heating up. Houses here are selling for $350k, which is slightly higher than the state’s median but still well below national averages. The average DOM rate is 24 days— the average American home sells after 32 days.  

This DOM rate is still above Wyoming’s average of 15 days, but last year Cheyenne’s DOM rate was much higher than what it’s now boasting at around 53 days, signaling an increasingly competitive market as the number of home sales dip down to 122.  

2. Casper

Casper will call to outdoorsmen everywhere with its iconic, historic landscapes and western offerings like sprawling national parks and hiking trails.  

Casper’s housing market has been on the rise with a $283,000 median home price, one that has gone up almost 7% from this time last year. Casper remains very affordable, with home prices below both the national average and the average for Wyoming. If you’re looking for something rural, quiet, and cheaper than other western states like Colorado and California, Casper may be the place for you.  

As with many other housing markets, Casper has become more competitive over recent years as the supply goes down and prices hike up. There were eight less homes sold this year compared to last year, and Casper’s average days on market has been cut in half—while the average home took 40 days to go pending last year, this year it only takes 20.  

Economic Factors Impacting the Wyoming Housing Market 

A holistic view of the housing market in Wyoming requires a basic understanding of the main economic drivers affecting the market. Let’s look at a few critical ones below: 

Mortgage Rates 

Current mortgage rates are at 7.26% in Wyoming for a 30-year fixed mortgage. The national average is currently 7.12%, so Wyoming is slightly above what’s typical.  

Higher interest rates deter borrowing and discourage those who already own homes from putting their homes on the market. Many homeowners report feeling “tied” to their current homes, as it is unlikely they will secure a mortgage rate as low as their current if they move to a new property. Prospective buyers in Wyoming would be wise to monitor mortgage rates in the coming months for a better understanding of how they impact the housing market in Wyoming. 

Inflation and Cost of Living 

Mortgage rates relate directly to inflation, another massive contributing factor to the affordability of housing and the status of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in Wyoming. This means fewer people can truly afford to limit housing costs to less than the recommended 30% of their monthly income.  

Population Changes and Demographics 

The April 2024 unemployment rate in Wyoming was at a stable 2.8%, much lower than America’s average of 4%.  

Wyoming’s economy is expanding in terms of diversity in jobs, seeing as its non-farm employment rate rose 1.7% from April 2023 to April 2024. A diverse workforce bodes well for Wyoming’s economy and for the future of the state’s housing market. 

Wyoming Housing Market Forecast 

Wyoming’s housing market has many of the same troubles as the rest of the nation—skyrocketing mortgage rates, a shortage of affordable housing, and increasing property taxes. Until inflation and mortgage rates fall, it’s unlikely that younger buyers can once again realistically afford the average Wyoming home. However, despite the exclusion of the younger demographic, there is no shortage of demand. Wyoming’s low property tax and picturesque views make it an investors paradise, with many real estate experts collecting Airbnbs or other investments in Wyoming’s landscapes.  

Likelihood of Wyoming Housing Market Crash  

The hottest markets are those that have plenty of buyers and a quick pace combined with low inventory. Wyoming’s low inventory has been keeping prices lofty despite high interest rates, but demand remains. The median DOM is much lower than the national average, signifying a frenzy for the few homes that do hit the market.  

If interest rates fall significantly, it will change the Wyoming housing market and allow those who had been sitting in the sidelines to finally enter the market. As long as there is demand for Wyoming homes, a housing market crash seems unlikely anytime soon. 

Forecast for The U.S. Housing Market 

Now that we’ve looked at Wyoming’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years? 

The United States’s current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9. 

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.  

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get. 

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth. 

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.  

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.  

Wyoming Rental Market 

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.  

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.  

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.  

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year. 

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.  

This short summary leads directly into Wyoming’s current rental market. 

Wyoming Rental Market Key Trends 

According to Zillow, these are the rental metrics in Wyoming:  

• Median rent: $1,200 

• Month-over-month change: $0 

• Year-over-year change: -$50 

• Available Rentals: 613 

Conclusion 

The Wyoming housing market in 2024 is marked by a blend of stability and challenges, making it crucial for potential buyers and sellers to stay informed about market trends. Whether you’re looking to purchase a home soon or sell your property in Wyoming, the macro- and micro- economic trends outlined above will impact your decision-making. Market dynamics like changes in home prices, inventory levels, and interest rates will continue to be critical for stakeholders in local real estate.