SEATTLE, Jan. 29, 2016 /PRNewswire/ -- Urban home values
are outpacing the value of homes in the suburbs in most top-tier
metros, as city life gains popularity and high-end condos fill the
sky in Boston, Washington, D.C., Seattle, and other cities with fast-changing
downtowns.
Homes in the suburbs – a longstanding symbol of the American
Dream – have typically been worth more, on average, than homes in
urban areas. That's still true in much of the country. Suburban
homes in Nashville, Tenn.,
Cincinnati, Ohio, and Richmond, Virginia have a higher price tag
than the average home in the city.
But in Boston, Washington, D.C., and San Francisco, the meani value of
urban homes has recently surpassed the mean value of homes in
suburban areas. And urban homes are gaining ground in Denver, Phoenix, and Chicago.
The shift reflects demographic trends of millennials delaying
family life and choosing condos, and shifting preferences, as
people seek walkable neighborhoods with urban amenities.
It has vast implications for low-income people who have
traditionally lived in cities to be near services and employment.
Zillow recently found that, in San
Francisco and Seattle,
high-income people are making shorter commutes to downtown, while
low-income people are traveling much further to get to work in the
urban coreii.
Zillow based its analysis of urban and suburban home values on a
surveyiii of how people define their own neighborhoods –
as either urban, rural, or suburban – and then used characteristics
of those places to extrapolate the results and define ZIP codes all
over the country. By looking at home values within those areas,
Zillow could see how home values have fared in each type of place
over the years.
"This trend, in part, reflects home buyers' changing
preferences, as they seek amenity-rich, dense and walkable areas
that are often closer to their workplace," said Zillow Chief
Economist Dr. Svenja Gudell. "In the
future, this lifestyle trend will change some suburbs as we know
them, and they'll start to feel more urban as buyers move further
from city centers in search of affordable housing in communities
that still feel urban."
Nationally, suburban home values grew 5.9 percent in 2015, while
urban homes gained 7.5 percent in value. In 1997, urban home values
grew at 3.8 percent -- slower than suburban values, which grew 4.1
percent that year.
On a per-square-foot basis, home values for urban areas are way
up, indicating that people are willing to pay more for less space
to live in the city. In Washington,
D.C., for example, urban homes in 1996 cost 6 percent more
per square foot than suburban homes. Today, they cost 41 percent
more per square foot.
Metropolitan
Area
|
2015 Urban
ZHVI
|
Urban 1-year ZHVI
Change 2014-2015
|
Urban 5-year ZHVI
Change 2010-2015
|
2015 Suburban
ZHVI
|
Suburban 1-year
ZHVI Change 2014-2015
|
Suburban 5-year
ZHVI Change 2010-2015
|
United
States
|
$269,036
|
7.5%
|
28.4%
|
$263,987
|
5.9%
|
21.1%
|
Los Angeles,
CA
|
$604,006
|
7.6%
|
42.1%
|
$706,925
|
7.2%
|
33.9%
|
Chicago,
IL
|
$198,982
|
2.0%
|
2.3%
|
$231,008
|
1.1%
|
5.1%
|
Dallas-Fort Worth,
TX
|
$192,404
|
13.4%
|
38.8%
|
$210,338
|
13.9%
|
38.9%
|
Philadelphia,
PA
|
$134,449
|
1.1%
|
3.4%
|
$259,863
|
1.1%
|
1.3%
|
Washington,
DC
|
$425,611
|
2.9%
|
23.8%
|
$409,194
|
0.7%
|
14.4%
|
Miami-Fort
Lauderdale, FL
|
$240,015
|
7.8%
|
53.1%
|
$262,079
|
8.6%
|
50.2%
|
Atlanta,
GA
|
$205,353
|
7.4%
|
25.6%
|
$204,687
|
6.5%
|
23.2%
|
Boston, MA
|
$440,869
|
9.6%
|
37.1%
|
$426,356
|
6.2%
|
20.5%
|
San Francisco,
CA
|
$927,890
|
14.0%
|
65.3%
|
$910,306
|
13.7%
|
58.7%
|
Detroit,
MI
|
$70,781
|
1.1%
|
18.7%
|
$176,030
|
4.6%
|
45.0%
|
Riverside,
CA
|
$292,666
|
5.9%
|
45.2%
|
$323,927
|
5.0%
|
43.2%
|
Phoenix,
AZ
|
$218,595
|
8.7%
|
64.6%
|
$255,070
|
6.6%
|
50.8%
|
Seattle,
WA
|
$437,813
|
11.4%
|
36.9%
|
$410,991
|
9.4%
|
33.3%
|
Minneapolis-St Paul,
MN
|
$206,921
|
3.6%
|
20.5%
|
$244,019
|
3.3%
|
18.6%
|
San Diego,
CA
|
$468,597
|
6.5%
|
41.2%
|
$630,877
|
6.6%
|
34.2%
|
Tampa, FL
|
$160,144
|
9.4%
|
35.8%
|
$180,963
|
7.9%
|
32.9%
|
Baltimore,
MD
|
$176,092
|
1.1%
|
3.9%
|
$297,691
|
0.7%
|
2.7%
|
Denver, CO
|
$330,932
|
14.4%
|
54.5%
|
$338,801
|
14.1%
|
49.1%
|
Pittsburgh,
PA
|
$109,152
|
3.8%
|
21.6%
|
$148,575
|
2.7%
|
15.8%
|
Portland,
OR
|
$340,413
|
12.5%
|
36.4%
|
$332,050
|
11.3%
|
35.3%
|
Charlotte,
NC
|
$170,506
|
6.4%
|
18.0%
|
$186,922
|
6.0%
|
18.1%
|
Sacramento,
CA
|
$317,778
|
8.2%
|
39.4%
|
$360,400
|
7.5%
|
42.5%
|
Orlando,
FL
|
$167,585
|
6.8%
|
40.9%
|
$201,576
|
6.0%
|
34.6%
|
Cincinnati,
OH
|
$114,760
|
4.2%
|
8.5%
|
$159,789
|
3.4%
|
9.8%
|
Cleveland,
OH
|
$76,986
|
0.4%
|
-6.6%
|
$150,132
|
2.7%
|
4.9%
|
Las Vegas,
NV
|
$166,080
|
9.3%
|
62.7%
|
$232,452
|
7.5%
|
51.3%
|
Columbus,
OH
|
$102,837
|
5.0%
|
8.2%
|
$171,031
|
7.0%
|
17.8%
|
San Jose,
CA
|
$1,119,156
|
13.2%
|
73.7%
|
$1,179,781
|
14.6%
|
70.3%
|
Virginia Beach,
VA
|
$155,999
|
1.4%
|
-6.6%
|
$250,433
|
3.3%
|
2.6%
|
Nashville,
TN
|
$189,877
|
9.0%
|
26.8%
|
$234,483
|
9.7%
|
29.7%
|
Jacksonville,
FL
|
$133,336
|
5.8%
|
13.3%
|
$183,612
|
6.1%
|
17.4%
|
Oklahoma City,
OK
|
$134,405
|
2.8%
|
15.1%
|
$132,318
|
2.4%
|
15.5%
|
Hartford,
CT
|
$142,817
|
0.2%
|
-13.2%
|
$231,201
|
-1.3%
|
-5.4%
|
Richmond,
VA
|
$159,902
|
5.2%
|
1.3%
|
$218,506
|
3.9%
|
8.5%
|
About Zillow
Zillow® is the leading real estate and
rental marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Zillow also sponsors the bi-annual Zillow Housing Confidence
Index (ZHCI) which measures consumer confidence in local housing
markets, both currently and over time. Launched in 2006, Zillow is
owned and operated by Zillow Group (NASDAQ:Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i Weighted mean of ZHVI in urban, suburban or rural
zip codes weighted by the number of properties in each zip code
ii
http://www.zillow.com/research/seattle-san-fran-affordable-housing-11297/
iii The 2014 survey asked 2,008 adults whether they
considered their ZIP code to be urban, rural or suburban.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/as-trends-shift-urban-home-values-outpace-those-in-the-suburbs-300211962.html
SOURCE Zillow