The cost of housing – just like everything else – at mounted very high over the past year. Low inventory levels and low interest rates have driven the median price of a home in the United States up nearly 20% in a single year.
But this latest leap is only an acceleration of what has been happening for 20 years, especially in California. Most California cities have seen home prices rise dramatically since 2000, with many seeing home values double or even triple.
In some cities, the value of a typical home has more than tripled. San Francisco, for example, had a typical home value of $356,800 in 2000, according to data analyzed by real estate brokerage Clever. In 2022, the typical value of a home is nearly $1.4 million, an increase of 290%, or almost four times the value of 22 years ago.
San Francisco is often touted as the most extreme example of a housing market going wild, but it’s not the only California city to see home values rise astronomically. Clever analyzed the median home sale price in the nation’s 50 largest metropolitan areas and found that 13 cities have seen home values more than triple since 2000. The top six cities were all in California.
About two decades ago, the typical Riverside or Sacramento home was easily worth less than $200,000. Now, according to Clever, the median home value in Riverside is $544,000. It’s $583,000 in Sacramento.
San Diego was just a bit more expensive in 2000, with the average home costing $231,000. Fast forward to the present day, and that same house could be worth $858,000.
The median home value in Los Angeles in 2000 was around $231,000. This number has grown to $878,000 in 2022, a 280% increase.
The typical value of a home in San Jose rose from $437,000 to nearly $1.6 million over the same period.
The 13 U.S. cities where home values have increased more than 200%—that’s tripled—since 2000 are:
- San Francisco (290% increase)
- Los Angeles (280% increase)
- Riverside, CA (278% increase)
- San Diego (275% increase)
- San Jose, CA (261% increase)
- Sacramento, CA (237% increase)
- Seattle (235% increase)
- Tampa, Florida (223% increase)
- Miami (220% increase)
- Austin, Texas (209% increase)
- Portland, Oregon (207% increase)
- Phoenix (206% increase)
- Denver (204% increase)
According to Clever, several cities across the country have seen much slower growth in home values:
- Cleveland (60% increase)
- Detroit (62% increase)
- Memphis, Tennessee (72% increase)
- Chicago (73% increase)
- Hartford, Connecticut (87% increase)
- Cincinnati (88% increase)
- Birmingham, Alabama (90% increase)
- Saint-Louis (98% increase)
Over the same period, the national average rose 156% — or rose about 2.5 times — from $127,215 to $325,677, according to Clever’s full report.
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