HOUSINGNEWS REPORT
PERSISTENT HOME PRICE APPRECIATION PRESSURES MARKET ORTHODOXIES
When factory jobs opened up in the Rust Belt people moved there from the rural South. What’s different in recent years is that the benefits of moving to hot areas are not attractive for many workers. Greg Kaplan and Sam Schulhofer-Wohl, economists with the Federal Reserve Bank of Minnesota, explain that “labor markets around the country have become more similar in the returns they offer to particular skills, so workers need not move to a particular place to maximize the return on their idiosyncratic abilities.” In other words, a programmer might make just as much in either Portland or Peoria, but the small town – with lower housing costs and other expenses – can be competitive by offering greater affordability and perhaps a more- desirable lifestyle.
or San Francisco. Compare Houston’s 14.6 percent growth in hiring to the national U.S. average of 10.4 percent, or Washington, D.C.’s modest 3.5 percent at the bottom of our list.” It’s not just plumbers, teachers, and EMTs who are being frozen out of high-cost areas. As Redfin CEO Glenn Kelman told CNBC in late December, “Silicon Valley is going to leave Silicon Valley – that’s already happening.” The Problem? “The technology companies, the Wall Street companies, they’re chasing the talent, (and) the talent is chasing affordable housing,” said Kelman. According to the Silicon Valley Competitiveness and Innovation Project (SVCIP), between 2010 and 2015 Silicon Valley added 367,064 jobs but only
Housing prices created by better jobs in hot markets are increasingly unaffordable thus making such communities effectively “off-limits” for new residents. How many teachers, plumbers, or EMTs can move to Cupertino, the California community where Apple is headquartered and the typical home now costs more than $1.7 million? When you look at job growth it’s not the “hot” markets which are leading the pack. LinkedIn.com explains that “Houston, Phoenix, and Dallas are growing faster than New York City and San Francisco – the Sunbelt is booming. Over the past year, hiring growth in Houston, Phoenix, Dallas-Ft. Worth, and Cleveland-Akron surpassed the national average – and blew past hiring growth rates in big coastal cities like New York City, Seattle,
2017 HOME PRICE APPRECIATION BY METRO
MSA Name
2017 Median Home Price
1-Year HPA
5-Year HPA
Kansas City, MO-KS
$172,098 $960,000 $224,900 $230,000 $264,000 $410,000 $207,000 $180,000 $348,050 $187,000 $233,050 $360,000 $245,000
13.4% 13.3% 12.5% 12.3% 10.9% 10.8% 10.7% 10.7% 10.5% 10.1%
36.6% 81.1% 56.2% 56.5% 58.9% 82.2% 80.0% 65.0% 61.8% 85.0% 63.7% 88.5% 100.0%
San Jose-Sunnyvale-Santa Clara, CA
Nashville-Davidson-Murfreesboro-Franklin, TN
Las Vegas-Henderson-Paradise, NV
Salt Lake City, UT
Seattle-Tacoma-Bellevue, WA Orlando-Kissimmee-Sanford, FL Tampa-St. Petersburg-Clearwater, FL Portland-Vancouver-Hillsboro, OR-WA
Jacksonville, FL
Dallas-Fort Worth-Arlington, TX Denver-Aurora-Lakewood, CO
9.4% 9.1% 8.9%
Miami-Fort Lauderdale-West Palm Beach, FL
CLICK HERE TO SEE THE ENTIRE TABLE
12
FEBRUARY 2018 | ATTOM DATA SOLUTIONS
Made with FlippingBook Online newsletter