Press Releases

Home Values Higher than Ever in Almost Half of Nation's Largest Markets

The median U.S. home is $4,100 more valuable now than at the housing bubble's peak a decade ago, according to the July Zillow Real Estate Market Reports

- Almost half of the largest U.S. housing markets have surpassed peak home values hit during peak bubble years about a decade ago.

- More than 48 percent of individual homes nationwide are currently worth more than they were prior to the onset of the Great Recession.

- National home values rose 6.8 percent over the past year, to a Zillow Home Value Index (ZHVI) of $200,700. Home values in Seattle, Dallas and Tampa, Fla. rose the most.

- Rents across the country are up 1.6 percent year-over-year, to a Zillow Rent Index (ZRI) of $1,427 per month, with rent in Seattle and Sacramento, Calif. appreciating the most.

Aug 24, 2017

SEATTLE, Aug. 24, 2017 /PRNewswire/ -- Home values are setting new records in about half of the country's largest metros, and the national median home value is now $4,100 more than it was in April 2007, just before the market crashed, according to the July Zillow® Real Estate Market Reporti.

Home values in Denver, Dallas and San Jose have appreciated most beyond the previous record-highs set at the peak of the housing bubble in the mid-2000s. Homes in Denver are almost 60 percent more valuable now than during the bubble, increasing from a median home value of $235,900 in April 2006 to a current median home value of $371,100.

When the housing market crashed, home values plummeted and it has taken about 10 years for home values to reach new record highs. Strong labor markets and steady income growth have pushed up home values in the nation's hottest markets more quickly than in others. Among the 35 largest housing markets, 15ii have higher median home values than ever before.

An abundance of well-paying jobs in Portland, San Francisco and Seattle has quickly driven up home values as job seekers flood these markets looking for new opportunities. In Portland, the median home value is about 26 percent higher now than during peak bubble years, and about 20 percent higher in San Francisco and Seattle.

Additionally, more than 48 percent of individual homes nationwide are currently worth more than they were prior to the onset of the Great Recession. In Denver, 99.5 percent of homes are worth more now than during the peak of the housing bubble, but in Las Vegas, less than 1 percent of homes are more valuable.

"Home values are high, but affordability – while suffering a bit lately – is still okay, largely because of very low mortgage interest rates helping to keep monthly mortgage payments in check," said Zillow Chief Economist Dr. Svenja Gudell. "The more pressing issue is abnormally low inventory, which is translating into an extremely competitive environment for home shoppers. Bidding wars and homes selling for over asking price have been common themes in many markets this summer, and continued competition in the face of limited supply will only continue to push home values up going forward. Home shoppers that were hoping to buy this summer but haven't yet found their dream home may have better luck once September and October roll around, when we can expect to see more homes coming online and less competition."

The median home value across the U.S. rose 6.8 percent over the past year, to a Zillow Home Value Indexiii of $200,700, which is $4,100 more than in April 2007 when home values were at their previous peak.

Seattle, Dallas and Tampa, Fla. reported the greatest year-over-year home value appreciation between July 2016 and July 2017 among the 35 largest U.S. metros. In Seattle, home values rose almost 13 percent over the past year to a median home value of $450,900.

Median rent across the nation rose 1.6 percent since last July, the fastest pace of appreciation since December 2016, to a median payment of $1,427 per month. Seattle, Sacramento, Calif. and Los Angeles reported the greatest rent growth over the past year. In Seattle and Sacramento, rents rose about 5 percent since last July. In Los Angeles, rents rose just over 4 percent to a Zillow Rent Indexiv of $2,696.

One of the greatest hurdles for home shoppers this summer has been low inventory. There are 13 percent fewer homes on the market now than a year ago, the greatest drop in inventory since June 2013. In San Jose, there are 51 percent fewer homes for sale now than last July, and 36 percent fewer in San Diego.  

Mortgage rates were slightly lower on average in July than in June, making it easier for home shoppers to afford rising prices. Mortgage ratesv on Zillow ended the month of July at 3.74 percent, the lowest month-ending rate since May 2017. Mortgage rates hit a high of 3.84 percent in the first few weeks of the monthvi with the month low at 3.72 percentvii. 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

ZHVI Bubble
Peak

Percent
Difference
From
Peak

Zillow Rent
Index (ZRI)

ZRI Year-
Over-Year
Change

United States

$                200,700

6.8%

$    196,600

2.1%

$              1,427

1.6%

New York, NY

$                425,600

9.3%

$    445,200

-4.4%

$              2,382

-1.0%

Los Angeles-Long Beach-Anaheim, CA

$                611,100

6.1%

$    604,000

1.2%

$              2,696

4.3%

Chicago, IL

$                212,300

6.4%

$    247,000

-14.0%

$              1,644

0.2%

Dallas-Fort Worth, TX

$                212,500

9.6%

$    149,600

42.0%

$              1,588

3.0%

Philadelphia, PA

$                218,500

4.0%

$    230,600

-5.2%

$              1,573

-0.4%

Houston, TX

$                180,800

4.6%

 n/a

 n/a

$              1,535

-2.7%

Washington, DC

$                382,900

3.0%

$    427,600

-10.5%

$              2,130

0.4%

Miami-Fort Lauderdale, FL

$                254,200

6.6%

$    305,200

-16.7%

$              1,850

-1.8%

Atlanta, GA

$                180,400

7.8%

$    174,500

3.4%

$              1,355

3.4%

Boston, MA

$                429,400

7.9%

$    382,700

12.2%

$              2,364

2.4%

San Francisco, CA

$                859,000

6.3%

$    700,300

22.7%

$              3,377

-0.6%

Detroit, MI

$                141,400

8.5%

$    157,100

-10.0%

$              1,163

-1.0%

Riverside, CA

$                330,400

5.6%

$    403,900

-18.2%

$              1,807

4.3%

Phoenix, AZ

$                238,300

6.5%

$    273,500

-12.9%

$              1,330

2.6%

Seattle, WA

$                450,900

12.8%

$    380,200

18.6%

$              2,161

5.4%

Minneapolis-St Paul, MN

$                246,900

7.8%

$    240,500

2.7%

$              1,601

4.0%

San Diego, CA

$                550,900

6.7%

$    543,600

1.3%

$              2,504

3.4%

St. Louis, MO

$                148,300

2.8%

$    158,900

-6.7%

$              1,139

0.5%

Tampa, FL

$                186,400

9.6%

$    214,300

-13.0%

$              1,356

1.8%

Baltimore, MD

$                260,600

3.4%

$    289,100

-9.9%

$              1,731

-0.1%

Denver, CO

$                371,100

8.4%

$    235,900

57.3%

$              2,020

0.6%

Pittsburgh

$                138,300

5.2%

 n/a

 n/a

$              1,079

-2.4%

Portland, OR

$                368,900

8.7%

$    293,100

25.9%

$              1,838

3.8%

Charlotte, NC

$                176,000

8.2%

$    155,400

13.3%

$              1,271

2.7%

Sacramento, CA

$                371,400

8.7%

$    420,800

-11.7%

$              1,757

5.0%

San Antonio

$                165,400

8.2%

 n/a

 n/a

$              1,334

1.2%

Orlando, FL

$                207,700

9.1%

$    256,300

-19.0%

$              1,412

3.1%

Cincinnati, OH

$                153,300

6.1%

$    144,300

6.2%

$              1,263

1.9%

Cleveland, OH

$                135,200

5.9%

$    145,400

-7.0%

$              1,146

-0.3%

Kansas City, MO

$                160,200

6.9%

$    159,500

0.4%

$              1,267

2.3%

Las Vegas, NV

$                227,800

9.4%

$    304,700

-25.2%

 n/a

n/a

Columbus, OH

$                163,600

4.9%

$    148,000

10.5%

$              1,308

1.2%

Indianapolis, IN

$                138,700

5.2%

$    139,900

-0.9%

$              1,192

-0.3%

San Jose, CA

$             1,027,100

7.9%

$    745,300

37.8%

$              3,477

-0.9%

Austin, TX

$                272,400

6.7%

 n/a

 n/a

$              1,696

-1.0%

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. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow and Zestimates are registered trademarks 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 This tally includes Pittsburgh, where home values didn't rise and fall to the same extreme during the bubble and bust as in other markets.
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 Month high on July 7th and July 10th.
vii Month low occurred on July 21st and July 24th.

 

SOURCE Zillow

For further information: Jordyn Lee, Zillow, press@zillow.com


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