Top 10 Housing Markets Where Soaring Prices Leave Locals Priced Out, Defying Historical Norms
Real estate economists at Florida Atlantic University analyzed average expected home values based on historical data against current list prices across the nation’s 100 largest metro areas.
The study used publicly available data from online real estate portal Zillow or other providers from January 1996 through the end of last month, for single-family homes, townhomes, condominiums and co-ops.
The research aims to pinpoint cities with significant price disparities, shedding light on the challenges faced by long-time residents priced out of their neighborhoods amidst soaring real estate costs. Besides home owners, the findings are also important for real estate investing to identify pockets of exuberance and analyze if the higher priced metros deserve the price jump compared to historical trends.
Here are the top 10 cities where current prices are much higher compared to their historical prices.
Atlanta, GA
Welcome to the vibrant heart of the South, where Atlanta’s dynamic housing market boasts an average listing price of $370,548. With its rich history, diverse culture, and booming economy, Atlanta offers homebuyers an exciting urban lifestyle with a Southern flair. However, brace yourself for a reality check as the expected home value reveals a more modest $260,237, highlighting a significant 42.39% premium to historical price.
Cape Coral, FL
Experience waterfront living at its finest in Cape Coral, where the average listing price dazzles at $393,976. This coastal paradise promises sun-soaked days and tranquil nights, perfect for those seeking a slice of tropical paradise. But beneath the surface, the expected home value brings a dose of reality at a more modest $278,492, showcasing a notable 41.47% difference.
Detroit, MI
Welcome to the Motor City, where Detroit’s housing market exudes resilience with an average listing price of $236,025. Discover a city rich in history, culture, and opportunity, where urban revival meets affordable living. However, with an expected home value of $168,062, buyers are reminded of the city’s economic challenges, revealing a significant 40.44% difference.
Tampa, FL
Embrace the laid-back lifestyle of Tampa, where the average listing price paints a picture of affluence at $370,474. With its sunny skies, stunning beaches, and vibrant culture, Tampa offers the perfect blend of relaxation and excitement. Yet, beneath the surface, the expected home value takes a more conservative stance at $266,401, indicating a notable 39.07% variance.
Palm Bay, FL
Welcome to Palm Bay, a coastal gem where the average listing price sparkles at $348,916. Enjoy endless days of sunshine, pristine beaches, and outdoor adventures in this Florida paradise. But don’t be fooled by the glitz, as the expected home value reveals a more laid-back $251,359, showcasing a substantial 38.81% gap between dreams and reality.
Knoxville, TN
Experience Southern charm at its finest in Knoxville, where the average listing price offers a glimpse into the city’s affordability at $326,864. Nestled in the foothills of the Great Smoky Mountains, Knoxville boasts a rich cultural heritage, thriving arts scene, and friendly community spirit. However, with an expected home value of $236,115, buyers are reminded to approach with caution, revealing a notable 38.56% difference.
Las Vegas, NV
Welcome to the Entertainment Capital of the World, where Las Vegas’ housing market shines bright with an average listing price of $407,516. Explore the glitz and glamour of the Strip, indulge in world-class dining and entertainment, and experience the thrill of the desert oasis. Yet, with an expected home value of $295,195, buyers may find themselves rolling the dice in this high-stakes market.
Lakeland, FL
Discover the charm of Lakeland, where the average listing price paints a picture of prosperity at $308,862. With its picturesque lakes, historic downtown, and family-friendly atmosphere, Lakeland offers a slice of small-town paradise. However, with an expected home value of $225,104, buyers are advised to tread carefully, revealing a substantial 37.21% difference.
Orlando, FL
Welcome to the magical world of Orlando, where the average listing price enchants at $386,687. Home to world-famous theme parks, vibrant entertainment, and year-round sunshine, Orlando captures the imagination of residents and visitors alike. Yet, with an expected home value of $282,740, buyers may need a dose of reality amidst the fantasy, revealing a significant 36.76% premium.
Charlotte, NC
Experience the Queen City’s charm, where Charlotte’s housing market exudes promise with an average listing price of $368,712. Discover a thriving metropolis brimming with culture, commerce, and Southern hospitality. However, with an expected home value of $270,209, buyers are reminded to approach with caution, revealing a substantial 36.45% difference.
Once Affordable, Now Florida’s Housing Market is Pricey
In the August 2021 ranking, no Florida metros made the top 10, signaling a stark shift in the state’s housing landscape. Today, 5 of the top 10 rankings of unaffordable cities based on historical data are held by a city in Florida.
“It used to be that you didn’t need a big salary to afford a home in the Sunshine State, but those days are over because this has become a market mostly for move-up buyers and empty nesters,” said Ken H. Johnson, Ph.D., a real estate economist in FAU’s College of Business. “Florida’s relatively low incomes should make housing affordability a key issue for a long time.”
The research study doesn’t account for the absolute price. It only looks at historical data and how much more expensive a city’s average home is currently priced. With Florida’s relatively modest incomes, housing affordability emerges as a persistent concern. Florida is the beneficiary of other states losing population. As residents from California and New York flee to Florida they could be driving prices higher than past historical trends.
Like Financial Freedom Countdown content? Be sure to follow us!
Continuing Exodus Sees Californians Flocking to Florida and Texas
2023 saw booming demand for U-Haul equipment from California, Massachusetts, Illinois, and New Jersey as citizens chose to flee the West Coast and Northeast. On the U-Haul Growth Index, which shows net losses of one-way trucks in various states that year, California, Massachusetts and Illinois ranked 50th, 49th and 48th, respectively – marking their third consecutive year at the bottom positions. But what could be causing such a mass exodus from states like California, New York, and Illinois?
Continuing Exodus Sees Californians Flocking to Florida and Texas
Grocery Bills Skyrocket: How Inflation’s “Decline” Still Leaves Shoppers Stunned and Struggling
Feeling bewildered by the ever-increasing prices on your grocery bill, despite reports of declining inflation? You’re not alone. Despite official statements suggesting a downturn in inflation, the stark reality is that average food prices have surged by a staggering 5.0 percent in 2023 compared to the previous year. To put it into perspective, this figure more than doubles the 20-year average of retail food price inflation, which typically hovers around 2.5 percent annually. If you’ve been feeling the pinch at the checkout counter, you’re not imagining things—here’s why.
Grocery Bills Skyrocket: How Inflation’s “Decline” Still Leaves Shoppers Stunned and Struggling
Escape the Rat Race: Focusing on the Two Key Numbers for Financial Independence
You want to retire, but it seems too far away. Most people can’t quit until they hit a specific number in their bank account. But every financial calculator spits out generic numbers. Discovering the road to financial independence starts with understanding just two crucial numbers. Let us delve into the key metrics of retirement expenses and safe withdrawal rate, and how you can calculate it for your lifestyle.
Escape the Rat Race: Focusing on the Two Key Numbers for Financial Independence
Unlock Passive Income: 15 Smart Investments That Pay You Monthly
Dreaming of a consistent passive income every month from your investments? It’s not just a dream for the wealthy; it’s achievable for anyone willing to explore the possibilities. We will uncover various investments that promise monthly returns, from the well-known to the hidden gems. Whether you’re new to investing or looking to diversify your portfolio, discover how to create a dependable monthly income stream and take a step towards financial stability.
Unlock Passive Income: 15 Smart Investments That Pay You Monthly
John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
Here are his recommended tools
M1 Finance: John compared M1 Finance against Vanguard, Schwab, Fidelity, Wealthfront and Betterment to find the perfect investment platform. He uses it due to zero fees, very low minimums, automated investment with automatic rebalancing. The pre-built asset allocations and fractional shares helps one get started right away.
Personal Capital: This is a free tool John uses to track his net worth on a regular basis and as a retirement planner. It also alerts him wrt hidden fees and has a budget tracker included.
Streitwise is available for accredited and non-accredited investors. They have one of the lowest fees and high “skin in the game,” with over $5M of capital invested by founders in the deals. It is also open to foreign/non-USA investor. Minimum investment is $5,000.
Platforms like Yieldstreet provide investment options in art, legal, structured notes, venture capital, etc. They also have fixed-income portfolios spread across multiple asset classes with a single investment with low minimums of $10,000.
