Fort Lauderdale, Las Vegas and San Francisco are among the US cities that saw the most dramatic shifts in their housing markets in the last decade, according to a new report from Redfin.
“The housing market is ending the decade in a vastly different place than it began,” said Daryl Fairweather, Redfin’s chief economist. “In 2010, the market was in the middle of its greatest downturn in history. Home values were plummeting and the share of mortgages in delinquency was at an all-time high. Heading into 2020, home values have recovered along with the economy, and now many parts of the country are grappling instead with new challenges like high home prices and a lack of homes for sale.”
Here are some of the housing markets that experienced the most seismic shifts between 2010 and 2019:
Highest percent increase in home prices: Fort Lauderdale
Florida was one of the hardest-hit state4s during the foreclosure crisis, seeing some of the biggest declines in home values. But as the state recovered from the housing crash, it saw a concomitant increase in home prices, leading to the country’s largest post-crisis recovery, according to Redfin. In Fort Lauderdale, the median home price spiked 161% over the decade, from $106,000 in 2010 to $278,000 at the end of 2019. The median price also more than doubled over the decade in Orlando (up 127%) and Miami (up 106%).
Biggest contrast between rise in home prices and decline in income: Las Vegas
Las Vegas residents saw their average income plummet during the recession, and incomes haven’t yet fully recovered there. The median home price has increased at an average annual rate of 14.1% over the past decade, while the median income declined at an average annual rate of 0.4%, according to Redfin. The widening gap between income and home prices has impacted the market’s homeownership rate, which was 59% in 2010 and fell to a low of 52% in 2016. The rate had inched up to 53% as of 2017, but high home price growth in the market has been largely supported by investors looking to rent out or flip homes, Redfin reported.
Largest dollar-value spike in home prices: San Francisco
San Francisco saw its median home price spike by $711,000 over the decade – from $698,000 in 2010 to $1.4 million in 2019. The explosion in home prices was driven by two main factors: a lack of inventory and a booming job market. By October of 2019, San Francisco’s unemployment rate was just 1.9%, according to Redfin – but the city simply doesn’t have enough housing units for all the workers.
Largest drop in inventory: Salt Lake City
Inventory fell by 77% over the decade in Salt Lake City, according to Redfin. The drop was driven largely by Salt Lake City homeowners stating in their homes longer than usual. In 2019, the typical Salt Lake City homeowner had lived in their home for 23 years, versus 15 years in 2010.
Greatest decline in days on market: Nassau County, N.Y.
The median time it takes to sell a home in Nassau County dropped by about four months over the course of the decade, according to Redfin. In 2010 it took an average of 180 days to sell a home in the county. By the end of 2019, it took just 56 days.
“During the housing crash there were a lot of short sales on Long Island, which are very difficult to close. I don’t see that at all anymore,” said Redfin agent Peggy Papazaharias. “In the last several years, prices skyrocketed in Manhattan, which pushed many homebuyers to consider Long Island, and now demand is very strong.”