U.S. Housing Market Recovers $9T Lost in 2007 Crash

The U.S. housing market gained back all $9 trillion in value it lost when the market collapsed in the past decade, according to new data from Zillow. However, the recovery has been unevenly spread across the country.

 

Zillow noted that nationwide home values hit their lowest point in December 2012 while individual markets bottomed out between July 2011 and December 2012. But the financial comeback has been lopsided, with some markets roaring into new health (San Jose’s homes have gained $615,100 in value since the crisis, more than three times what was lost) and others are still somewhat anemic (Indianapolis only gained $19,400 in value during this period). And not every major market suffered greatly in the recession—Denver, for example, only saw a nine percent decline in home values during the housing crisis, less than half of what the typical American home lost in value.

 

"A decade after the financial crisis, the scars of the housing bust are still with us," said Zillow Senior Economist Aaron Terrazas. "The gap between the metros with the strongest and weakest housing market recoveries is as wide as it has ever been. The California Bay Area's housing recovery stands out when compared to other markets that saw similar home value appreciation because it has more than regained all of its lost value. Strong, high-paying job markets and persistently limited inventory sent prices skyrocketing, leading to the Bay Area having the most valuable housing markets in the country."

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