15 areas of the United States where there is a threat of a housing crisis

The American housing bubble has led to a prolonged global financial crisis. It was caused mainly by the exploitative practice of lending, as a result of which people found themselves in houses that they could not afford. The crisis in the housing market has lowered the average American cost of housing by 37%, writes USA Today.

Фото: Depositphotos

Ten years after the crisis, new rules protect people from predatory lenders. After the collapse of the housing market, the price of it restored the lost value. During the first quarter of 2019, housing prices rose by almost 70% after a low after a recession.

While a steady annual increase in the cost of housing is generally considered a positive development, too rapid growth can lead to market instability and the risk of a collapse in the long term. In some cities in the United States, the cost of housing can grow at a rate that can be catastrophically unstable.

ATTOM Data Solutions, 24 / 7 Wall St. identified 15 areas of the United States, where housing prices are at least 20% higher than at the nearest peak before the recession. In some of these cities, prices exceed this level by more than 50%.

In these metropolitan areas, prices are mainly rising due to fast-growing spheres of activity and the emergence of high-paying jobs. Growing demand for housing can lead to higher prices for it.

On the subject: Top-10 states with the highest real estate tax

The results of the study showed that in the whole country the median cost of a house is 3,61 times the average household income.

15. Seattle-Tacoma-Bellevue, WA

• House price change from pre-crisis peak: 23,1%
• Current average house price: $ 437 000
• Pre-crisis peak: $ 355 000 (2 quarter of 2007)
• Average household income: $ 82 133
• Population growth over 10 years: 16,9%

14. Durham-Chapel Hill, North Carolina

• House price change from pre-crisis peak: 27,1%
• Current average house price: $ 225 000
• Pre-crisis peak: $ 177 000 (2 quarter of 2007)
• Average household income: $ 61 271
• Population growth over 10 years: 18,3%

13. Boise city idaho

• House price change from pre-crisis peak: 27,2%
• Current average house price: $ 254 379
• Pre-crisis peak: $ 200 000 (3 quarter of 2007)
• Average household income: $ 55 324
• Population growth over 10 years: 21%

12. Spokane-Spokane Valley, WA

• House price change from pre-crisis peak: 29,1%
• Current average house price: $ 226 000
• Pre-crisis peak: $ 175 000 (3 quarter of 2007)
• Average household income: $ 53 321
• Population growth over 10 years: 23,7%

13. Portland-Vancouver Hillsboro, Oregon-Washington

• House price change from pre-crisis peak: 31,5%
• Current average house price: $ 367 000
• Pre-crisis peak: $ 279 000 (3 quarter of 2007)
• Average household income: $ 71 931
• Population growth over 10 years: 12,7%

10. Provo-Orem, Utah

• House price change from pre-crisis peak: 31,6%
• Current average house price: $ 309 296
• Pre-crisis peak: $ 235 000 (3 quarter of 2007)
• Average household income: $ 70 196
• population growth over 10 years: 25,1%

On the subject: US states with the highest and lowest real estate taxes

9. Salt Lake City, Utah

• House price change from pre-crisis peak: 34,3%
• Current average house price: $ 318 750
• Pre-crisis peak: $ 237 378 (3 quarter 2007 of the year)
• Average household income: $ 71 510
• Population growth over 10 years: 9,8%

8. Urban Honolulu, Hawaii

• House price change from pre-crisis peak: 37,8%
• Current average house price: $ 565 000
• Pre-crisis peak: $ 410 000 (4 quarter 2007 of the year)
• Average household income: $ 81 284
• Population growth over 10 years: no data

7. Colorado Springs, CO

• House price change from pre-crisis peak: 42,6%
• Current average house price: $ 285 000
• Pre-crisis peak: $ 199 900 (3 quarter of 2007)
• Average household income: $ 65 593
• Population growth over 10 years: 19%

6. San Jose Sunnyvale Santa Clara, California

• House price change from pre-crisis peak: 43,4%
• Current average house price: $ 1 million
• Pre-crisis peak: $ 730 000 (2 quarter of 2007)
• Average household income: $ 117 474
• Population growth over 10 years: 10,8%

5. Nashville-Davidson-Murfreesboro-Franklin, Tennessee

• House price change from pre-crisis peak: 54,9%
• Current average house price: $ 240 000
• Pre-crisis peak: $ 154 900 (3 quarter of 2007)
• Average household income: $ 63 939
• Population growth over 10 years: 25,1%

On the subject: The pitfalls of buying and selling housing in the US: realtors answered questions from readers ForumDaily

4. Austin-Round Rock, TX

• House price change from pre-crisis peak: 62,1%
• Current average house price: $ 302 000
• Pre-crisis peak: $ 186 250 (3 quarter of 2007)
• Average household income: $ 73 800
• Population growth over 10 years: 32,8%

3. Fort Collins, Colorado

• House price change from pre-crisis peak: 66,9%
• Current average house price: $ 365 500
• Pre-crisis peak: $ 219 000 (4 quarter 2006 of the year)
• Average household income: $ 69 102
• Population growth over 10 years: 19,6%

2. Denver-Aurora-Lakewood, Colorado

• House price change from pre-crisis peak: 68,2%
• Current average house price: $ 382 000
• Pre-crisis peak: $ 227 050 (3 quarter 2005 of the year)
• Average household income: $ 76 643
• Population growth over 10 years: 17,1%

1. Greeley, Colorado

• House price change from pre-crisis peak: 79,2%
• Current average house price: $ 326 950
• Pre-crisis peak: $ 182 500 (3 quarter 2005 of the year)
• Average household income: $ 68 884
• Population growth over 10 years: 25%

Methodology

The researchers analyzed quarterly median home price data for 123 metropolitan statistical areas from real estate data company ATTOM Data Solutions. Data on demographic changes were taken from the US Census Bureau. The ratio of affordability—median home price to median household income—was calculated using 2017 data, also from the ACS. We excluded from consideration those markets where the housing affordability ratio was above 3,61.

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