The US housing market lost $9 trillion, or 23% of its value, in the recession but it has regained all the losses from the market collapse according to Zillow
The US housing market lost $9 trillion, or 23% of its value, in the recession but it has regained all the losses from the market collapse according to Zillow.
But the recovery is far from even with some markets still struggling to return to their pre-crash values while others have significantly surpassed previous highs.
The typical US home in more than half of the nation’s largest housing markets is now worth $55,200 more than it was at the bottom of the crash.
The healthy labor market and tight inventory in the West Coast markets has driven strong gains for their house prices while the Sand States saw the biggest losses in the bust and have yet to fully recover.
"A decade after the financial crisis, the scars of the housing bust are still with us," said Zillow Senior Economist Aaron Terrazas. "The gap between the metros with the strongest and weakest housing market recoveries is as wide as it has ever been."
A striking example of that gap is demonstrated by considering the median home in both Las Vegas and San Jose, which lost about $190,000 during the housing crisis.
While San Jose has seen a sharp rise in prices since the crisis (gaining $615,100) Las Vegas was hit especially hard during the recession so that $190K was a 62% drop in value and prices have only regained $131,000 in the years since.
But the recovery is far from even with some markets still struggling to return to their pre-crash values while others have significantly surpassed previous highs.
The typical US home in more than half of the nation’s largest housing markets is now worth $55,200 more than it was at the bottom of the crash.
The healthy labor market and tight inventory in the West Coast markets has driven strong gains for their house prices while the Sand States saw the biggest losses in the bust and have yet to fully recover.
"A decade after the financial crisis, the scars of the housing bust are still with us," said Zillow Senior Economist Aaron Terrazas. "The gap between the metros with the strongest and weakest housing market recoveries is as wide as it has ever been."
A striking example of that gap is demonstrated by considering the median home in both Las Vegas and San Jose, which lost about $190,000 during the housing crisis.
While San Jose has seen a sharp rise in prices since the crisis (gaining $615,100) Las Vegas was hit especially hard during the recession so that $190K was a 62% drop in value and prices have only regained $131,000 in the years since.
| Markets That Have Gained the Most and Least Value since the Worst of the Housing Crisis | |||
| Most Value Gained | Least Value Gained | ||
| 1. | San Jose - $615,100 | 1. | Indianapolis - $19,400 |
| 2. | San Francisco - $435,700 | 2. | St. Louis - $22,100 |
| 3. | Los Angeles - $248,000 | 3. | Cleveland - $25,200 |
| 4. | San Diego - $217,500 | 4. | Pittsburgh - $29,000 |
| 5. | Seattle - $206,400 | 5. | Cincinnati - $29,600 |
