America's big housing markets have recovered while others struggle

by Steve Randall14 Sep 2018

The impact of the financial crisis and the housing market crash is still being felt in cities across the US with the ‘power markets’ dominating recovery.

A new Zillow analysis reveals that 21 of the 35 largest metros have more than recovered the value lost in the crash but others are lagging.

"A decade after the financial crisis it's clear that, just as the bust was felt very differently across the country, so has the recovery. Looking back, the housing bust was a rare historical moment when housing markets across the country moved in sync," said Zillow Senior Economist Aaron Terrazas.

Leading the recovery is San Jose, where the current median home value of $1.29 million, 74% higher than the top of the bubble and more than double its post-crash low.

Denver’s median is 66% higher than the bubble peak at $397,800, although this market didn’t see the rapid rise in prices during the bubble that was experienced elsewhere.

Conversely, the median in Las Vegas ($266,200) is still 16% below the bubble peak, while Orlando ($228,700) and Chicago ($219,800) have median values almost 14% below peak.

“Homes that still are worth less than they were a decade ago mean more long-term homeowners remain tethered to underwater mortgages, still struggling to regain that lost value,” added Terrazas. In the markets that have seen the strongest recoveries, a combination of strong job growth, tight supply and low interest rates have pushed home values upward. But in places that continue to struggle, the stimulus of low mortgage rates is quickly turning to a headwind and the window for a full recovery is quickly closing."

Metropolitan Area

Peak Median

Value

Pre-Crash

Lowest

Median Value

Post-Crash

Current

Median

Value

Change

From Pre-

Crash Peak

United States

$200,500

$148,600

$218,000

8.7%

New York, NY

$452,800

$335,100

$429,700

-5.1%

Los Angeles-Long Beach-Anaheim, CA

$609,600

$380,800

$643,300

5.5%

Chicago, IL

$254,100

$159,200

$219,800

-13.5%

Dallas-Fort Worth, TX

$152,400

$137,800

$231,100

51.6%

Philadelphia, PA

$237,300

$186,900

$228,400

-3.8%

Houston, TX

$149,600

$133,400

$199,300

33.2%

Washington, DC

$435,400

$308,900

$397,500

-8.7%

Miami-Fort Lauderdale, FL

$311,600

$136,800

$275,700

-11.5%

Atlanta, GA

$184,600

$116,400

$206,300

11.8%

Boston, MA

$386,600

$305,800

$456,400

18.1%

San Francisco, CA

$705,100

$471,100

$954,100

35.3%

Detroit, MI

$159,200

$73,900

$156,100

-1.9%

Riverside, CA

$408,900

$186,000

$358,600

-12.3%

Phoenix, AZ

$284,000

$128,600

$256,000

-9.9%

Seattle, WA

$381,400

$254,700

$487,600

27.8%

Minneapolis-St Paul, MN

$240,700

$166,300

$261,300

8.6%

San Diego, CA

$540,000

$342,800

$584,100

8.2%

St. Louis, MO

$155,900

$129,300

$161,800

3.8%

Tampa, FL

$223,500

$110,000

$205,900

-7.9%

Baltimore, MD

$298,500

$216,900

$264,700

-11.3%

Denver, CO

$240,200

$211,600

$397,800

65.6%

Pittsburgh, PA

$111,000

$106,700

$141,600

27.6%

Portland, OR

$293,700

$215,500

$391,800

33.4%

Charlotte, NC

$158,100

$130,600

$196,800

24.5%

Sacramento, CA

$423,300

$209,800

$400,800

-5.3%

San Antonio, TX

$143,400

$132,600

$185,900

29.6%

Orlando, FL

$265,200

$122,200

$228,700

-13.8%

Cincinnati, OH

$146,200

$125,300

$162,000

10.8%

Cleveland, OH

$143,800

$110,600

$141,500

-1.6%

Kansas City, MO

$155,500

$135,500

$182,600

17.4%

Las Vegas, NV

$316,800

$119,900

$266,200

-16.0%

Columbus, OH

$150,200

$126,100

$182,600

21.6%

Indianapolis, IN

$132,000

$114,400

$154,100

16.7%

San Jose, CA

$743,800

$546,200

$1,292,600

73.8%

Austin, TX

$199,400

$185,900

$298,000

49.4%

 


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