For seven out of the 35 largest U.S. housing markets, home values have finally regained the value they lost during the recession, according to the latest market research by Zillow. More than 95 percent of surveyed homes are worth more than their peak value during the housing boom, with a median home value of $217, 300, an 8.3 percent increase in a year-over-year analysis.
These numbers are also 8.4 percent of the highest point of the housing bubble, with 21 out of the 35 surpassing its bubble peak level.
"Even a decade after the 2008 Financial Crisis, and five-plus years into the recovery, it's clear that the housing boom and bust was felt very differently in various markets – and is still being felt today in many," Aaron Terrazas, Zillow Senior Economist said. "In markets like Las Vegas that got farthest ahead of themselves during the boom, and consequently fell the most, a large majority of homes are still not worth as much today as they were a decade ago. But in markets like Denver that were more stable a decade ago, many more homes are worth more now than ever before.”
As home values rise, inventory has dropped, decreasing 4.8 percent in a year-over-year analysis, after falling 12.3 percent the year before. With these changes, rent has risen 1.3 percent over the last year, reviving possible concerns over ever-dwindling affordable housing.
“Despite widespread and consistent home value growth today, the scars of the recession still run deep for millions of longer-term U.S. homeowners, and it may take years of growth for their home to regain the value lost a decade ago,” Terrazas said. “And while stabilizing growth in rents is likely a relief for those renters saving to become homeowners, many of those would-be buyers in a number of the nation's hottest markets will be contending with home prices that are as high as they've ever been."
See the breakdown of the top 35 metros here.