10 Housing Markets Where Surging Prices Are Forcing Locals Out and Shattering Historical Norms
Real estate economists at Florida Atlantic University recently analyzed home prices in the nation’s 100 largest metro areas, comparing today’s average listing prices with historical data to assess market trends. Using public data from Zillow and other sources, the study examined single-family homes, townhomes, condominiums, and co-ops from January 1996 through last month’s end.
The findings spotlight cities with dramatic price surges, underscoring the struggles of long-time residents increasingly priced out of their neighborhoods. These insights are also essential for real estate investors, offering a clear picture of cities with notable market exuberance and examining whether today’s higher prices align with historical norms.
Here are the top 10 cities where current prices most sharply exceed historical values.
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.
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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.
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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.
Platforms like Yieldstreet provide investment options in art, legal, real estate, 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.
