These cities saw house prices triple. What happened then?
(NEXSTAR) – When the pandemic hit, the line on the graph of ever-increasing house prices suddenly shot up to an even steeper trajectory. By 2022, at least 13 major U.S. cities had seen home values increase by more than 200%—or triple—since 2000.
But the past year has been different. As the Fed has worked to tame inflation, interest rates have gone up (and up and up), and the overriding bidding wars may have reached a truce.
What happened in those cities that saw house prices triple in about 20 years? Real estate agency Clever checked back on the data in 2023 and found that house prices in most of the big cities have remained unchanged. In a city they will even go down.
San Francisco, for example, had a typical home value of $356,800 in 2000. It shot up to $1.4 million in 2022—almost a fourfold increase.
But from 2022 to 2023, prices dropped by just a hair. According to Clever’s analysis, the typical home value in San Francisco is down 1.6% compared to this time last year.
Although home prices may decline or remain fairly flat in the major cities that previously saw home prices more than triple, there are two major exceptions, both in Florida. Miami home values increased another 16% from 2022 to 2023, the most of any major city. Tampa saw prices jump another 12% in one year.
Take a look at the chart below to see how prices have changed in the 13 cities where home values tripled from 2000 to 2022:
|City||Typical house value in 2000||Typical housing value in 2022||Typical housing value in 2023||% Increase from 2000 to 2022||% Increase 2022 to 2023|
|San Francisco, CA||$274,120||$1,113,873||$1,096,477||290%||-1.6%|
|Los Angeles, CA||$216,288||$824,093||$855,851||280%||3.9%|
|San Diego, CA||$207,925||$781,965||$822,400||275%||5.2%|
|San Jose, CA||$354,864||$1,343,798||$1,385,816||261%||3.1%|
Outside major cities, the data tell a different story. Mid-sized cities such as Jacksonville and Orlando, Florida; Oklahoma City; Hartford, Connecticut; Richmond, Virginia; Columbus, Ohio; and Nashville, Tennessee all had increases of 10% in just one year.
The national average has increased by 8.7% between 2022 and 2023.
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