When the real estate bubble burst in 2009, home values plummeted driving home values into a Great Recession. The good news is, over the last 10 years housing prices have rebounded, in some places beyond their 2006 highs, but not every market has recovered according to a new study from LendingTree. The company evaluated the nation’s 50 largest metropolitan areas in the U.S. to see where housing prices have recovered the most since the height of the recession, and where the markets are still struggling. The study also looks at the changes in income and unemployment rates over the last decade.
Most likely due to an increase in incomes and falling unemployment rates, the average median home values have increased by nearly $50,000 across the 50 largest metros. Unemployment rates have fallen by an average of 4.7 percentage points. Detroit’s drop of almost 10 percent is the largest in the nation, while Houston’s 1.7 percentage decrease is the smallest. The median household income has increased by an average of $11,344 since 2009. San Antonio was the only metro where the median household income declined.
San Jose, California, San Francisco and Los Angeles have recovered the most since 2009 with the average housing price increase of $243,600. According to the study, the boom may be in part due to tech companies like Google and Apple bringing high paying jobs to these metros.
The only metros where median prices fell are Hartford, Connecticut, Chicago, Virginia Beach, Virginia, and Baltimore, where home prices have fallen nearly $6,700. In many of these areas, a lack of strong employment opportunities and out-of-state migration could be the biggest factors behind the drop.
This study shows how significantly the housing market can change in a single decade so that current homeowners and potential home buyers can better understand the way the market fluctuates. Using caution based on the past, homeowners are still taking advantage of the present opportunities.
Read the full report here.