For many American cities, the recovery of the housing market since 2012 has been dramatically different.
In 2007, housing prices began to collapse, and they fell to a 13-year year low in 2012. The recovery since then has been uneven at best.
A new analysis from the San Francisco-based real-estate research group Trulia.com, “Turnaround Towns…And Towns Stuck In the Downturn,” looked at areas that have both thrived and struggled since housing prices hit their 2012 lows.
“Nearly four years after housing prices hit bottom nationally, some metro areas have seen big gains in employment, wages, housing prices — while others have seen sluggish economic growth and lagging prices,” Trulia’s Felipe Chacon, a housing analyst, said on the research company’s blog, citing data from the Bureau of Labor Statistics and the Zillow Z, -2.04% Home Value Index.
In general, it found that most Westernmost U.S. cities have seen roaring job growth and real estate price gains, while most Northeast cities have seen only sluggish economic growth and lagging prices.
Nationwide, housing valuations have recovered nearly all their losses from 2012, rising almost 20% from a $153,000 median valuation for all homes in February 2012, to $183,000 in November 2015, according to the Zillow Home Value Index.
But there are stark differences from city to city.
Northern California cities have outperformed the rest of the nation. San Jose, Calif.’s job growth has been nearly 13% since 2012 and housing values have risen 44%, Trulia said. In San Francisco, job growth has increased more than 14% and housing values have risen 43% during that time, Trulia said. Job growth of 7.8% in Anaheim, Calif. pushed house values there 28% higher.
Denver — considered by some to be the gateway to the West — and Seattle also rounded out the five biggest gainers. Denver’s job growth increased 11.5% since the crash, nearly double the national average of 6.5%, which helped fuel a rise in home values there of nearly 30% since 2012, Trulia said. Job growth in Seattle of 8.8% pushed house values nearly 29% higher. Southern cities like Austin, Tex. and Raleigh, N.C. have also seen strong job growth, which has boosted housing values. Austin’s labor market has grown 13% since 2012, and Raleigh’s has improved nearly 11%.
The worst performing markets were for the most part in the post-industrial upper Midwest and Northeast, Trulia said, and include Gary, Ind., (1.5% job growth and 3% growth in home values) Syracuse, N.Y., (0.5% job growth and 1.2% decline in home values) Camden, N.J., (3% job growth and 0.8% decline in home values) and Silver Spring, Md. (3% job growth, 13% home value increase) Only Albuquerque, N.M., was the geographic outlier. Albuquerque’s job growth has been just 1.2% since the 2012 crash, while the city’s home values have fallen 5.1% during the same period.
New Orleans has also seen slower-than-average employment and wage growth, as the city continues to emerge from the effects of Hurricane Katrina, which was over a decade ago, and as declines in the oil and natural gas drilling industries has hurt job growth. New Orleans’ job growth has been just 4.5% since 2012, below the national average, Trulia said. As such, home value appreciation in those four years has been just 7.8%