Changes in housing across neighborhoods is a gradual one that shows results over a longer time period. This, according to a study by Trulia that found some of the hottest housing markets today were some of the most affordable ones 20 years ago.
For the study, Trulia ranked the larger neighborhoods in each metro from most to least expensive based on estimated median home value to determine which moved up or down most in rank over the last 20 years.
The study found that many of the areas that are becoming the hottest housing markets today are close to the city centers and are often “described as gentrifying.” On the other hand, there are neighborhoods, mostly in the suburbs or exurbs that have fallen in value.
Among the areas on the rise was Hunters Point in Metro New York, where the neighborhood has seen the single largest home value rank change. The Queens neighborhood went from 272nd most expensive one among 296 New York Metro areas in 1998 to 23rd in 2018, according to Trulia’s findings. Oakhurst, Atlanta came in second showing a change of 32 places from 53rd to 21st most expensive neighborhood out of 69 in Atlanta.
At third place was Logan Square in Chicago that jumped from 89th most expensive one to 39th out of 138 Chicago neighborhoods. Passyunk Square in Philadelphia also rose 59 points from the 77th most expensive neighborhood in 1998 to 18th out of 88 neighborhoods studied by Trulia.
Coming in at No. 5 was Boise in Portland, Oregon that went from being among the cheapest neighborhoods in the city in 1998 to the 46th most expensive area in Portland. The neighborhood moved a whopping 130 places during this period. The Mission District in San Francisco also moved up from 105th of 130 neighborhoods to 77th in 2018
Median home prices in these neighborhoods today ranged from $1.4 million in Mission to 341,100 in Philadelphia. In 1998, the median home prices for these ranged from $278,400 in San Francisco to $39,300 in Philadelphia.
Neighborhoods that have become more affordable over the last 20 years included Whittingham in Metro New York that fell from 91st to 261st most expensive, Midwest Cascades in Atlanta that fell from 26th to 64th; Dunning in Chicago that fell from 55th in 1998 to 101; Burholme and Fox Chase in Philadelphia; and Ridge at Steeds Crossing in Austin.
All these neighborhoods had median prices ranging between $351,800 in Whittingham to $176,500 in Philadelphia against their 1998 prices that ranged from $228,500 in Midwest Cascade Atlanta to $86,700 in Philadelphia.