Most Expensive Markets in U.S. Have Appreciated Twice as Fast as Least Expensive in Past 30 Years

Inequality amongst real estate markets is only widening, according to a recent report by Trulia, as reported by CNN Money. Per the study, the country’s most expensive markets have appreciated much more dramatically and much quicker (at an average of two times as fast) than the least expensive areas in the past 30 years. The report cites the following statistics:

The average home price in the nation’s most expensive markets was $127,058 in 1986, 144% higher than the average price of $52,022 in the least expensive markets. The average home price in the nation’s most expensive markets is now $493,504 in 2016, almost 320% higher than the average price of $117,827 in the least expensive markets.

The main factors that drove the discrepancy are thought to be income growth and housing supply.

“If there are going to be changes to inequality, we are talking generations rather than decades.” said Ralph McLaughlin, Trulia’s chief economist about the gap.

According to the study, “There have only been four changes to the list of the 20 most expensive areas during the past 30 years: Portland, Oregon; Seattle, Denver and Washington, D.C. They replaced Dallas; Hartford, Connecticut; Worcester, Massachusetts and Riverside, California.”

The 10 markets that have enjoyed the largest returns on home values in the past 30 years include:

1. San Francisco 2. San Jose, CA 3. Honolulu, HI 4. Seattle 5. Portland, OR 6. Oakland, CA 7. Orange County, CA 8. Los Angeles 9. San Diego 10. Miami

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