Half of U.S. homes are now more valuable than before the real-estate bubble burst

  • Written by MarketWatch
  • Published in Economics

There’s a split emerging in the U.S. housing market: Some are becoming more valuable than ever, while others struggle to emerge from the financial crisis.

More than half of the homes nationwide are now more valuable than their pre-recession peaks, according a report released Thursday by real-estate website Zillow ZG, -0.02%[1] The national median home value is now $217,300, an increase of 8.3% on the year and 8.4% above the bubble-era peak. In 21 of the nation’s 35 largest markets, the median home value is now at an all-time high.

Driving much of the home value appreciation nationwide is a reduction in the number of homes available on the market. Inventory contracted 4.8% over the past year. Indeed, the tight supply of homes for sale has contributed to what some have called the most competitive home buying season [2]on record.

Don’t miss: Detroit has the country’s most unequal housing market—and that could be a good thing[3]

Some markets have rebounded faster than others post-recession. In seven of the country’s largest housing markets — Dallas-Ft. Worth, Seattle, Denver, San Antonio, San Jose, Austin and Portland, Ore. — more than 95% of homes are worth more than the pre-housing boom peak.

Denver has experienced a particularly notable rebound: The median value is now $397,700, or 65.5% higher than its previous peak in 2006, and more than 99% of homes are more valuable than they were in the bubble years.

Read more: What home buyers are willing to give up to live in a good school district[4] ...

Metropolitan area Share of homes worth more than pre-recession peak Median home value (June 2018) Year-over-year change in home value
United States 50.4% $217,300 8.3%
New York, N.Y. 28.5% $429,300 6.7%
Los Angeles-Long Beach-Anaheim, Calif. 64.4% $646,300 7.6%
Chicago, Ill. 14.6% $220,400 5.8%
Dallas-Fort Worth, Texas 97.7% $229,400 11.6%
Philadelphia, Pa. 35.9% $228,100 5.9%
Houston, Texas 97% $198,600 5.8%
Washington, D.C. 22.1% $399,500 4.2%
Miami-Fort Lauderdale, Fla. 9.6%

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