The housing market is out of control right now, as prices keep rising. Some metro cities have seen housing prices increase more than 200% since 2000. How crazy is that?
Still, a handful of metro cities still have relatively low housing prices and have increased less than 100% since 2000. One major Michigan city is on that list.
According to AnyTimeEstimate.com, only eight cities have seen home prices increase less than 100% since 2000. They call this an “impressive feat in today’s market.” As for the metros that have increased more than 200% since 2000, they state, “Much of the growth seen in home values has, unsurprisingly, centered around California’s housing market. Overall, the Golden State’s biggest metros have seen an average increase of 277% in the typical home value since 2000, and these cities lead the pack at the national level.”
So, which Michigan city is among the lowest for home prices increases since 2000? Detroit. In fact, the Motor City only trails Cleveland, Ohio, when it comes to its low home-price inflation. Home prices in Detroit have increased just 62% since 2000. I know it might sound like 62% is a lot, but it totally isn’t. Home prices in San Francisco, California, have increased 290% since 2000. I have a friend out there who can attest to the fact it’s super hard to get a home, or rent, in San Francisco right now.
As for mythology, AnyTimeEstimate.com states, “Median sales price of homes sold in the United States (MSPUS) are retrieved from the Federal Reserve Bank of St. Louis. For more recent home typical values, we use the Zillow Home Value Index (ZHVI). As an overall measure of inflation, we use the Consumer Price Index for All Urban Consumers (CPIAUCSL), which measures the average monthly change in the price of goods and services paid by urban consumers between any two time periods.” They add, “We also use data on real median household income in the United States provided by the Federal Reserve Bank of St. Louis. This data dates back to 1984 and is adjusted for inflation. For the prices of household goods, we use the consumer price index (CPI) measure for individual goods provided by the U.S. Bureau of Labor Statistics.”