As we near the end of a tumultuous decade in housing we thought we would step back and take a look at some cities that, despite the current downturn, have performed best. We looked at the 75 largest cities in the country for which we have home value data and calculated the change in home values over the last 10 years. We ranked them by the cities with the most appreciation in that time period.
Since we’re not quite at the end of the year, we looked at the percent change in home values, according to the Zillow Home Value Index (ZHVI) from October 2000 to October 2010.
The state of California had the most cities on the list — eight — followed by New Jersey and Virginia, which each had two cities on the list.
Here is a deeper look into the trends and stats behind the top 10 cities on our list:
1. Washington, DC
ZHVI a Decade Ago: $142,904 | Current ZHVI: $352,117
Coming is at number one is Washington, DC, which saw the ZHVI, or median home value, rise from $142,904 in October 2000 to a home value of $352,117 in October 2010, which is an astounding 146 percent change. Home values in Washington took off in late 2000 and by March 2001 were seeing yearly appreciation greater than 20 percent. That continued until October 2005, when yearly home value appreciation began to flatten. One year later, in October 2006, annual home value changes had flat-lined at 0 percent and floundered near one percent until peaking in June of 2007 at $417,157. Since then, the city has seen the ZHVI decrease by 15.6 percent to $352,117. From October 2009 to October 2010, home values decreased by 5.1 percent.
2. Philadelphia, PA
ZHVI a Decade Ago: $51,207 | Current ZHVI: $113,160
The city of Brotherly Love is second on our list of the best performing cities of decade. The median home value in Philadelphia has risen 121 percent, from $51,207 in October 2000 to $113,160 in October 2010. Philadelphia never quite saw the housing bubble burst the way many other major U.S. cities did, with 17 consecutive months of annualized appreciation greater than 20 percent. By comparison, the top city on our list, Washington, DC had 48 consecutive months of greater-than-20 percent annual home value change during the same mid-decade period. Home values peaked in Philadelphia in May 2007 at $120,353 and remained relatively flat for some time. However, this trend has changed in recent months as the ZHVI began to fall more rapidly. From September to October, home values fell 2 percent.
3. Arlington, VA
ZHVI a Decade Ago: $249,861 | Current ZHVI: $522,254
Just across the Potomac River from Washington, DC is Arlington, VA, the third city on our list. Arlington has seen the median home value rise by 109 percent, from $249,861 in October 2000 to $522,254 in October 2010. Like Washington, Arlington benefited from large annual home value increases of greater than 20 percent in the middle of the decade. However, the two cities differ dramatically in the timing of the peak in home values and the eventual decline. Arlington saw the ZHVI peak nearly two years ahead of Washington, in September 2005 at $569,671. Annual home values continued to fall until October 2009 and have seen very healthy appreciation since. From October 2009 to October 2010, home values increased by 1.6 percent.
4. Newark, NJ
ZHVI a Decade Ago: $122,728 | Current ZHVI: $251,011
The New York City suburb of Newark, New Jersey comes in fourth on our list. The city saw the ZHVI, or median home value, rise from $122,728 in October 2000 to the current home value of $251,011 — a whopping 105 percent change. Like many of New York City’s suburbs, Newark saw a long and steady run-up in housing for the first seven years of the decade before peaking in July 2007 at $332,454, more than a year after the nation as a whole. Since then, home values have fallen by nearly one-quarter (24.5 percent). More recently, home values have begun to rise in the city. On average, Newark home values have increased by 1.7 percent for each of the past five months.
5. Virginia Beach, VA
ZHVI a Decade Ago: $122,043 | Current ZHVI: $229,712
Virginia Beach, VA is the fifth city on our list. The median home value in Virginia Beach has risen 88 percent, from $122,043 in October 2000 to $229,712 in October 2010. The ZHVI nearly doubled from mid-2003 through mid-2007 before peaking in May 2007 at $272,656. Home values have fallen steadily since and are now where they were in March 2005. The decline in home values leveled off in mid-2009 but have begun to decline again. Currently, the median home value for Virginia Beach is down 7 percent year-over-year.
6. Baltimore, MD
ZHVI a Decade Ago: $59,917 | Current ZHVI: $111,871
Located an hour north of our nation’s capital, Baltimore, MD is the sixth city on our list. The median home value in Baltimore has risen 87 percent, from $59,917 in October 2000 to $111,871 in October 2010. The ZHVI shot up substantially from mid-2004 through late-2007 before peaking in October 2007 at $147,396. Home values have fallen steadily since and are now where they were in December 2005. The rate of monthly depreciation leveled off in the spring of 2010 but has since picked back up. Currently, the median home value for Baltimore is down by more than 11 percent year-over-year.
7. Long Beach, CA
ZHVI a Decade Ago: $219,781 | Current ZHVI: $393,161
The ocean-side Los Angeles, CA suburb of Long Beach is seventh on our list of best performing cities of the decade. The median home value in Long Beach has risen 79 percent, from $219,781 in October 2000 to $393,161 in October 2010. Long Beach saw a very steep run-up in home values starting in early 2001 and lasting until early 2006 when the median home value peaked at $561,852. Home values then started to fall nearly as quickly as they went up for the next three years. Finally, in May 2009, the median home value stopped its free fall and began to increase, which continued for 15 months. Recently, home values have begun to fall again, falling an average of 0.1 percent for each of the past three months.
8. Jersey City, NJ
ZHVI a Decade Ago: $138,152 | Current ZHVI: $245,029
Across Newark Bay from Newark, NJ, is our eighth city on the list, Jersey City, NJ. The median home value in Jersey City has risen 77 percent, from $138,152 in October 2000 to $245,029 in October 2010. The ZHVI nearly mirrors the overall trends of Newark, NJ, except for one aspect: The recent home value appreciation seen by residents of Newark. Rather than appreciating on a monthly basis, home values in Jersey City have been falling by a greater percentage for each of the past four months. From October 2009 to October 2010, home values decreased by 13.5 percent, which is more than double the current national rate.
9. Los Angeles, CA
ZHVI a Decade Ago: $229,024 | Current ZHVI: $398,216
The second-largest city in the United States, Los Angeles, takes the ninth spot on our list. The median home value in Los Angeles has risen 74 percent, from $229,024 in October 2000 to $398,216 in October 2010. Like many of the other cities on our list, home values in Los Angeles skyrocketed in the first part of the decade and fell sharply thereafter. However, home values began to stabilize in mid-2009 though mid-2010 and were positive for five consecutive quarters. But, as recently reported in Zillow’s Q3 Real Estate Market Reports, home values in Los Angeles have once again begun to decline. Currently, the median home value for Los Angeles is down 0.6 percent year-over-year and 1.6 percent quarter-over-quarter.
10. Glendale, CA
ZHVI a Decade Ago: $310,744 | Current ZHVI: $523,094
The Los Angeles suburb of Glendale, CA, is the tenth city on our list. The median home value in Glendale has risen 68 percent, from $310,744 in October 2000 to $523,094 in October 2010. Marked by high highs and low lows, home value trends in Glendale mirror those in Los Angeles. Currently, the median home value for Glendale is up 0.2 percent year-over-year but is down 1.9 percent quarter-over-quarter.
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