The mortgage crash and subprime crisis that was the cause of the 2008 recession battered millions of homeowners with plunge home values and dumped a lot of housing inventory on the market in once booming cities and made many mortgages go underwater. But for some cities in America, the last 10 years have actually led to an increase of personal wealth.
If you want to move to another city and want to avoid losing money in another financial crisis, the cities listed below could be good options. These cities generally have a very strong employment base for a variety of reasons, growing population and rising wages. These three factors are usually reasons for homes to continue to grow in value even if the economy enters a recession. Or at the very least, the homes in these cities will not greatly decline in value in a recession:
Boston saw a 10-year increase in home values of 53.4%. Going into the summer of 2018, Boston had one of the hottest real estate markets in the US. The Boston Globe reported Boston has had several years of the strongest upswing in prices that the region has ever seen. Tens of billions of dollars have been invested in construction in Boston since 2012. It is possible there will be a slowdown, but home values should be able to stay high given the strong business base in this area. The median listing price for homes in Boston is currently $749,000.
Austin is recognized as one of the best cities for millennials to move to and buy a home. Zillow found recently that home values in this area grew by 8.5% in the last year and the hot housing market is expected to continue in 2018, but at a slower pace of 2%.
Sales and median prices are still rising, and many local real estate investor and agents think Austin is going to have another year of record sales in 2018.
This western PA city saw a 10-year change in home values of 54.5%. According to the local newspaper, Pittsburgh has bucked national housing trends that show a shortage in homes for sale. Pittsburgh has been able to add houses to the market. Also, construction of new homes has continued apace even though there has been a slowdown nationally.
Zillow states that Pittsburgh is still a hot seller’s market and prices will rise by 4% in the coming year, while not as hot as last year’s 9.6%.
Seattle saw a 10-year change of home values of 54.8%. Zillow states Seattle’s housing market is still very hot with a 16% rise in home values in the past year alone. Growth is expected to be 5.7% for the next year. This city has been called the hottest housing market in the country by the local paper.
Seattle also has led the count in home price boosts for 14 months in a row.
Nashville TN saw a 58% rise in home values in the last 10 years. Home values in the area have risen 34% in the past four years and is one of the hottest markets. At this time though it appears this market is starting to cool; the median selling price in 2018 has been $3000 less than the median home value of $244,000.
This area saw an impressive 70% increase in home values since 2008. The median home value in this Colorado city has gone up to $305,000 this year, and Zillow continues to classify the market as hot.
The Denver Post reports the gains in house values in recent years is still happening. But it is at a slower pace today.
This city saw a huge 75.7% increase in home values since 2008. The Denver post reported last year that rent increases and increases in home prices will likely flatten somewhat until they go back to around 5%, which is the typical rate that is common across the country.
This market saw a 60% increase in home values since 2008. The Silicon Valley Business Journal reports this CA city is one of the healthiest real estate markets in the state and is leading other parts of CA such as San Jose and Oakland. It is actually #1 in the state for affordability, risk of loss and stability.
Zillow also reports values of homes here should increase by 5% this year.
The bottom line is that no one wants to move to a city where real estate values could plunge in the next downturn. People should look for cities with rising home values, growing population, rising wages and low unemployment. A broad employment base also usually means a city has the means to avoid a plunge in real estate values in a downturn.