Ten years ago, the United State, and the world for that matter, was caught in one of the worst economic recessions in decades. Many claim it was the worst financial collapse since the Great Depression, and it continues to shape our economic and political policy, as well as our way of thinking about investing, saving, and spending.
But like all financial issues, change is inevitable. Over the past decade, we have seen significant changes to the economy as a whole. More people are working, wages appear to be in the rise, and more buyers are ready, both emotionally and financially, for the real estate market.
All of these positives have lead to an increase in available homebuyers, buyers who are not only ready to purchase, but have larger budgets than before. This inevitably means an increase in home prices.
According to Redfin, one of the most comprehensive sources for real estate data, (as reported by National Mortgage News) numerous markets have seen a significant increase in home prices. For a variety of reasons, these markets are attracting jobs, consumers, and homebuyers, and their overall popularity is reflected in massive increases in home prices.
Hot Housing Markets Over the Past Decade: Where Did Prices Rise the Most?
Note: We’re Talking Increase by Percentage, Not Total Price or Total Rise
It’s important that we clarify a point before starting. For this article, we are talking about the increase in prices by percentage, not the total increase by cost or total home prices. So, for example, Los Angeles has the highest median sale price, but it’s not in the top ten because prices were already high. Most areas on this list started low (relatively speaking) and are now high.
1. Ft. Lauderdale, Florida
17% Average Annual Increase
At 17% growth in prices since 2010, Ft. Lauderdale, Florida is the market with the largest increase. Part of the reason that Ft. Lauderdale has seen such a rapid rise is the fact that the state of Florida in general was one of the main centers for the financial crisis, which plummeted prices. But now, home prices are averaging a 16.5% increase year to year. In 2010, the median home price was just over $106,000; now that price has skyrocket to about $278,000.
Possible Reasons for Increase in Ft. Lauderdale:
Southern Florida in general is a hot spot for high-end luxury homes, which decline in value when the economy is low, but rise when the economy is strong.
2. Warren, Michigan
15% Average Annual Increase
As we said above, to make this list the area’s median home sales needed to start small. No major market started had lower prices than Warren, which has a median sale price of less than $89,000 in 2010. With prices climbing to a median of $218,000, this city has seen a huge increase in overall home prices.
Possible Reasons for Increase in Warren:
The economy of Warren, a suburb of Detroit, is heavily influenced by the manufacturing industry in general, especially auto assembly. This industry was hammered by the recession, but through fits and starts appears to be on the rebound.
3. Las Vegas, Nevada
14% Average Annual Increase
Las Vegas is one of the most interesting cities in the country, with a fascinating history and an economy rooted in gambling, entertainment, and tourism, and it’s become one of the fastest-growing housing markets in the country. Starting in 2010 with a median home price of about $122,000, the Las Vegas housing market now sees a median price of almost $289,000, giving it an annual increase of 14.1%.
Possible Reasons for Increase in Las Vegas:
Las Vegas has a national reputation for casinos and entertainment, but recent increases in the job market, as well as a stable economy, appear to be driving these changes.
4. Orlando, Florida
13% Average Annual Increase
Orlando has many things going for it, but it also started the decade with relatively low median pricing. In 2010, the median price was less than $115,000, but this number skyrocketed to $259,723. This increase equaled an average annual rise of 13%, making it one of the fastest-climbing markets in the country.
Possible Reasons for Increase in Orlando:
Like Ft. Lauderdale, it’s possible that this Florida city benefited from an increase in high-end luxury. It also has a population growth that outpaces many other cities, which likely contributes to competition for housing and an increase in sales prices.
5. Oakland, California
13% Average Annual Increase
Oakland bucks the trend of median home prices starting low. In 2010, the median sale in Oakland was $335,722, but, despite the high mark, there was room for growth, as the number climbed to a $743,678. This represents a 12.5% increase every year.
Possible Reasons for Increase in Oakland:
The Bay Area in general is one of the most expensive markets in the country, and Oakland is no different. With low inventory and many competing buyers, home pricing in Oakland has soared, and in the minds of many, it’s actually becoming a serious problem.
6. Phoenix, Arizona
12% Average Annual Increase
Staring in 2010, Phoenix has a median home price of less than $130,00; that number now sits over $286,000. With an average annual increase of 12.4%, this Arizona city is one of the fastest-rising for home prices.
Possible Reasons for Increase in Phoenix:
Like many of the cities on this list, it appears that Phoenix has a supply problem. With numerous buyers, sellers can get top dollar, and it appears the mid-level “starter” homes are particularly rare in Phoenix.
7. San Jose, California
11% Average Annual Increase
Looking for a high-priced home? You may start your search in San Jose, where the median home price is a staggering $1,079,022 up from about $510,000 in 2010. This increase is 11.4% per year over the past decade, but San Jose can’t claim the highest total median price; that title goes to San Francisco with a median home price of $1.4 million.
Possible Reasons for Increase in San Jose:
San Jose has a prosperous job market and soaring economy, driven by the tech industry and financial giants like Apple and Google. At the heart of Silicon Valley, San Jose is a great place to live…if you can afford it!
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Sources:
- https://www.worldpropertyjournal.com/real-estate-news/united-states/fort-lauderdale/real-estate-news-redfin-housing-markets-that-changed-the-most-in-last-decade-fastest-growing-housing-markets-daryl-fairweather-fort-lauderdale-housing-market-san-francisco-home-prices-in-2019-11743.php
- https://www.nationalmortgagenews.com/list/15-housing-markets-with-the-biggest-price-increases-of-the-decade
