Search
 

Lowest-Cost Homes Lag Pricing Recovery

Even with headline numbers showing an overall recovery, says Svenja Gudell at Zillow, “there are still thousands of Americans struggling to bounce back from the housing bust.”

By Paul Bubny | paulbubny | Updated on September 22, 2017

Svenja Gudell of Zillow Gudell: “Demand for the limited supply of entry-level homes is pushing up their values.”

SEATTLE—For commercial property, a recent trend has seen greater price appreciation in the market’s lower tiers. In the residential sector, though, the reverse is true: Zillow said Thursday that in 24 of the 35 largest US housing markets, the lowest-priced homes are least likely to have recovered their pre-recession values.

A case in point is Detroit, where nearly two-thirds of the most expensive homes have regained the value they lost when the market collapsed in 2008, and the average top-tier price, $284,800, is higher than it was during the housing bubble. In contrast, Zilow says that homes in the bottom third have only regained an average of 33.7% of their lost value over the past nine years, and are now worth a median of $53,000.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.