Listen to and read about the states of the economy, job growth and the housing market and you might come away thinking that everything is coming up roses for everyone, everywhere. After all, doesn’t inflation all by itself render homes more valuable over time? Quite simply, no.
Zillow just released a study of 13,014 cities tracked on its site and found that 180 of those cities register lower home prices today than were registered 20 years ago. Of those 180 cities with current lower home prices, 16 cities have seen their home values drop by $50,000 from 1/1998 to 1/2018. 9 of those cities have experienced a 25% or more drop in home value.
Looking at a roughly 10-year period from 2007-2017, Zillow studied changes in home value, changes in unemployment rates, changes in labor force participation and changes in wages across its tracked cities.
Here is a list of 16 cities that lost $50,000 or move in home value during 2007 – 2017.
City State 2007 2017
*Sunrise Beach TX $481,400 $357,900
*East Gull Lake MN $443,500 $327,200
*Merrifield MN $265,900 $182,900
Pass Christian MS $226,500 $155,700
Alto NM $385,500 $315,400
*McCall ID $356,000 $287,000
*Nissan MN $304,400 $236,600
*Lake Tomahawk WI $233,000 $166,800
*Literal MN $326,000 $266,600
Placitas NM $432,000 $374,800
*Webster WI $201,500 $146,100
Grants NM $147,500 $94,200
Buffalo WY $269,500 $216,600
*Webster WI $192,000 $139,000
*Gilbertsville KY $193,900 $142,200
*Bayfield WI $233,000 $182,900
- lake areas
In Minnesota, 4 cities within the state’s central lake region lost a combined +$320,000 in home value since 1998.
In Wisconsin, all cities in the state’s northern lake region lost between 21.5 – 28.4% in home values.
In Illinois, home values have still not come back since the recession. In 2007, median home values were $170,600; in 2017, median home values were $141, 900.
GOBankingrates.com found Alaska to be one of the states with the least amount of debt BUT the unemployment rate is almost as high today as it was in 2009, 7.2%.
In Arizona, hit very hard by the housing crisis, home values have increased 47% since 2012 but are still not at pre-recession levels.
Connecticut experienced the second largest decrease in home values. Its median in 2007 was $262,100; its median today is $304,500.