SEATTLE, Sept. 21, 2017 /PRNewswire/ -- Median home
values are reaching new peaks in more than half of the nation's
largest housing markets, but a closer look at which homes are
regaining value reveals an uneven recovery in the biggest
markets.
More than 50 percent of U.S. homes have reached or surpassed the
value they reached during the housing boom period, according to the
August Zillow® Real Estate Market Reporti, but the types
of homes that are recovering are not the same, particularly in the
most populated places. In 24 of the nation's largest 35 markets,
the homes in the bottom third of the market are least likely to
have recovered the value lost when the housing bubble burst.
Detroit has seen one of the
least balanced recoveries following the Great Recession. Nearly
two-thirds of the most expensive homes in Detroit have regained the value lost when the
market collapsed. The typical top-tier home value in Detroit is $284,800, higher than it was during the housing
bubble. In comparison, homes in the bottom third have only regained
33.7 percent of their lost value, and are now worth a median of
$53,000. Only 10.6 percent of these
homes have fully returned to their peak values.
As homes are often the most expensive asset someone owns, the
recovery contributes to the growing wealth gap across the country.
Household incomes show a similar pattern of inequality, according
to newly released Census dataii. The median household
income across the United States
increased in 2016, but those in the top 20 percent of earners took
home more than half of the overall income.
"The housing market as a whole is moving at a steady clip, with
high demand and low inventory combining to maintain strong home
value appreciation," said Zillow Chief Economist Dr. Svenja Gudell. "Most new construction has been
at the higher end of the market, so demand for the limited supply
of entry-level homes is pushing up their values, but these homes
also lost more value when the bubble burst. Many of these
homeowners are still waiting to see their homes come back to where
they were about 10 years ago. Even as headline numbers show an
overall recovery, there are still thousands of Americans struggling
to bounce back from the housing bust."
The median home value in the U.S. rose 6.9 percent over the last
year to a Zillow Home Value Indexiii of $201,900. Seattle is the only major U.S. market where
home values rose at a double-digit annual pace, up 12.4 percent
since last August to a median home value of $453,100. Tampa
home values rose 9.3 percent, and the median home is worth
$187,400.
Annual rent appreciation grew for the fourth consecutive month,
with rents increasing 1.9 percent from last August to a Zillow Rent
Indexiv of $1,430.
Limited inventory leaves few options for buyers. Nationally
there were 12.6 percent fewer homes available in August 2017 than there were in August 2016. San
Jose and San Diego saw the
biggest annual declines in inventory, down 59.4 percent and 37.2
percent respectively.
Mortgage ratesv on Zillow ended August at 3.62
percent, near the lowest level of the month. Rates moved steadily
lower throughout the month after starting at a high of 3.72
percentvi. Zillow's real-time mortgage rates are based
on thousands of custom mortgage quotes submitted daily to anonymous
borrowers on the Zillow Mortgages site and reflect the most recent
changes in the market.
Metropolitan
Area
|
Zillow
Home Value
Index (ZHVI)
|
ZHVI Year-
over-Year
Change (%)
|
Zillow Rent
Index (ZRI)
|
ZRI Year-
over-Year
Change (%)
|
Fully
Recovered
Bottom-Tier
Homes (%)
|
United
States
|
$201,900
|
6.9%
|
$1,430
|
1.9%
|
47.0%
|
New York,
NY
|
$427,300
|
8.7%
|
$2,388
|
-0.3%
|
13.0%
|
Los Angeles-Long
Beach-Anaheim, CA
|
$612,400
|
6.0%
|
$2,707
|
4.4%
|
26.8%
|
Chicago,
IL
|
$213,300
|
6.5%
|
$1,647
|
0.5%
|
12.7%
|
Dallas-Fort Worth,
TX
|
$213,000
|
8.7%
|
$1,588
|
2.9%
|
94.6%
|
Philadelphia,
PA
|
$218,800
|
3.5%
|
$1,577
|
0.1%
|
49.8%
|
Houston,
TX
|
$182,100
|
4.8%
|
$1,532
|
-2.7%
|
N/A
|
Washington,
DC
|
$384,500
|
3.2%
|
$2,132
|
0.6%
|
13.8%
|
Miami-Fort
Lauderdale, FL
|
$256,100
|
6.5%
|
$1,850
|
-1.6%
|
4.1%
|
Atlanta,
GA
|
$181,700
|
7.9%
|
$1,365
|
4.0%
|
38.8%
|
Boston, MA
|
$430,200
|
7.6%
|
$2,365
|
2.3%
|
46.7%
|
San Francisco,
CA
|
$864,300
|
6.5%
|
$3,377
|
-0.6%
|
51.9%
|
Detroit,
MI
|
$142,200
|
8.6%
|
$1,168
|
-0.2%
|
10.6%
|
Riverside,
CA
|
$332,000
|
5.6%
|
$1,821
|
5.2%
|
2.4%
|
Phoenix,
AZ
|
$239,100
|
6.4%
|
$1,334
|
3.0%
|
7.2%
|
Seattle,
WA
|
$453,100
|
12.4%
|
$2,176
|
5.4%
|
88.2%
|
Minneapolis-St Paul,
MN
|
$247,400
|
7.4%
|
$1,609
|
4.6%
|
22.0%
|
San Diego,
CA
|
$552,400
|
6.2%
|
$2,518
|
4.0%
|
39.5%
|
St. Louis,
MO
|
$148,200
|
2.1%
|
$1,138
|
1.1%
|
30.1%
|
Tampa, FL
|
$187,400
|
9.3%
|
$1,360
|
2.2%
|
4.9%
|
Baltimore,
MD
|
$261,600
|
3.6%
|
$1,731
|
0.1%
|
27.5%
|
Denver, CO
|
$372,400
|
8.0%
|
$2,030
|
1.1%
|
99.8%
|
Pittsburgh,
PA
|
$138,900
|
5.1%
|
$1,080
|
-1.2%
|
N/A
|
Portland,
OR
|
$369,900
|
8.0%
|
$1,851
|
4.3%
|
99.3%
|
Charlotte,
NC
|
$177,800
|
8.7%
|
$1,278
|
3.6%
|
83.0%
|
Sacramento,
CA
|
$372,300
|
8.3%
|
$1,773
|
5.6%
|
5.6%
|
San Antonio,
TX
|
$166,200
|
8.1%
|
$1,334
|
1.3%
|
N/A
|
Orlando,
FL
|
$208,900
|
9.0%
|
$1,420
|
3.6%
|
1.9%
|
Cincinnati,
OH
|
$153,900
|
5.9%
|
$1,270
|
2.6%
|
50.3%
|
Cleveland,
OH
|
$136,400
|
6.6%
|
$1,142
|
-0.4%
|
8.6%
|
Kansas City,
MO
|
$160,600
|
6.8%
|
$1,267
|
2.7%
|
44.6%
|
Las Vegas,
NV
|
$230,100
|
8.9%
|
N/A
|
N/A
|
0.2%
|
Columbus,
OH
|
$165,100
|
5.4%
|
$1,315
|
1.9%
|
56.5%
|
Indianapolis,
IN
|
$138,900
|
4.8%
|
$1,197
|
0.3%
|
72.0%
|
San Jose,
CA
|
$1,038,900
|
9.1%
|
$3,485
|
-0.6%
|
92.1%
|
Austin, TX
|
$273,400
|
6.4%
|
$1,696
|
-0.8%
|
N/A
|
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. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i The Zillow Real Estate Market Reports are a monthly
overview of the national and local real estate markets. The reports
are compiled by Zillow Real Estate Research. For more information,
visit www.zillow.com/research/. The data in Zillow's Real Estate
Market Reports are aggregated from public sources by a number of
data providers for 928 metropolitan and micropolitan areas dating
back to 1996. Mortgage and home loan data are typically recorded in
each county and publicly available through a county recorder's
office. All current monthly data at the national, state, metro,
city, ZIP code and neighborhood level can be accessed at
www.zillow.com/local-info/ and www.zillow.com/research/data.
ii
https://www.census.gov/library/publications/2017/demo/p60-259.html
iii The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
iv The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given geographic
area on a given day, and includes the value of all single-family
residences, condominiums, cooperatives and apartments in Zillow's
database, regardless of whether they are currently listed for rent.
It is expressed in dollars.
v Mortgage rates for a 30-year fixed mortgage
vi Monthly high occurred on August 1st
View original
content:http://www.prnewswire.com/news-releases/for-least-valuable-us-homes-housing-crisis-recovery-lagging-300523394.html
SOURCE Zillow