The real estate crash in 2007 sent home prices plunging all across the country. The impact was particularly strong in states where prices had ballooned the most and new home building had been strongest: Nevada, Florida, Michigan, California, among others.
Median home prices in the United States have more than recovered their lost ground. The U.S. median rose to $227,000 last year, higher than the prior market peak of $220,500 in 2005. Compared with the bottom of the market in 2011, the median improved by 26%. Adjusted for inflation, current prices have recovered about 80% of their peak value.
While it has taken about 10 years for real estate markets to recover, the recovery, while not as uneven as the crash, has taken a stronger hold in some cities than in others. Also, perhaps unsurprisingly, some of the markets that slid the most are among the markets that have made the strongest comebacks.
Researchers at Realtor.com looked at the country’s 150 largest metro areas to determine which have recovered the most. In order to compare apples to apples, they did not include cities like Austin, where the bottom of the market did not change much from the peak. They drew this general conclusion:
The cities that achieved some of the speediest and most definitive recoveries have been the knowledge hubs—places clogged with colleges, research centers and young brainiacs, where a nimble, educated workforce helped attract new businesses. And cities that have done a good job diversifying their economy have also been big real estate winners in the past decade.
Here’s Realtor.com’s list of the 10 cities that have made the biggest comebacks. We’ve included the percentage growth since the 2011 trough (unless otherwise noted) and the median home price in 2016.
- San Jose, California: up 57% since 2011 bottom; median home price of $835,200
- San Francisco, California: up 53%; median price of $754,500
- Portland, Oregon: up 43%; median price of $335,400
- Grand Rapids, Michigan: up 30%; median price $162,500
- Provo, Utah: up 38% (since 2009); median price $285,200
- Colorado Springs, Colorado: up 26% (since 2009); median price $250,000
- North Port, Florida: up 51%; median price $238,700
- Charlotte, North Carolina: up 33% (since 2009); median price $217,600
- Boise, Idaho: up 48%; median price $218,500
- Reno, Nevada: up 77%; median price $300,100
For more information and details, visit Realtor.com.