I created the maps below (with Catherine Mulbrandon) to show the nominal Housing Price Index (HPI also see these posts for more updated metro maps, post1, post2, post3). They give a quick and easy glance at the bubble in housing prices in the United States by state. As you have probably seen in the news the bubble was largest in the West in states such as California, Arizona, and Nevada and Florida in the South East. Those states had the largest increase from 2000-2006 (height of the bubble) and the largest decrees from 2006-2010. One can see how homeowners ended up “under water” on their mortgages and left banks and taxpayers with major loses. However, from 2000 to 2010 all states except Michigan had moderate nominal price increases. Michigan missed out on the price increase but with the nation’s highest unemployment rate and with it’s major metro area, Detroit, being the most segregated metropolitan area in the U.S., Michigan crashed along with California and Florida. However, what goes up does not necessarily crash. Virginia, Maryland and NJ all experience large price increases with relatively small decrease. These states are dominated by NY and Washington DC metro areas. Future posts, will focus on smaller geographic areas as urban economic and social dynamics play an important roll in the nation. Unlike the stock market, which changes over time but is the same price no matter where you are located the housing bubble was characterized by change in space and time. (you can get a pdf here)
In the past, housing bubbles have been regional in nature but starting in 2006 nation-wide price declines (even global) are evident although certainly concentrated in particular regions.
Typically what gets reported on the news is the Case-Shiller index for home prices. It only tracks the change in the price of recent homes sales compared to the the last time they were sold in 20 metropolitan areas around the country while excluding those that have undergone major improvement of renovations. This obviously create some bias as the country may experance different dynamics from the housing the Case-Shiller index. One can see the difference here:
The Federal government tracks the same numbers, but also has the information for over 200 metropolitan areas (MSA). They also provide a Housing Price Calculator for metropolitan areas going back 20 years so people can find out what has been happening where they live. Some of the results are surprising. For example over the last decade (starting in q40 middle of graph) there was a price bubble in Boise, Idaho with home prices up 80% over the 2000-2006 time period. However, by 2010 they were only up 30%, which just keeps pace with inflation.
This chart show housing prices for Boise, Idaho 1991-2010
Housing Price Calculator will also give you a chart like this for your community.
[…] Unlike prices in the stock market (which are the same no matter where you you live) your experience of the housing bubble was determined by your location in the years 2000-2010. These maps (which I created with Matthew Mulbrandon) give a quick and easy glance at the change in housing prices focusing on the bubble in the United States. They show the Housing Price Index (not inflation adjusted) by state. As you have probably seen in the news, the housing bubble was largest in the West and the South East, in states such as California, Arizona, and Nevada and Florida. Those states had the largest increase from 2000-2006 (height of the bubble) and the largest decrees from 2006-2010. However, from 2000 to 2010 one can see all states (except Michigan) had more moderate price increases. You can learn more about the housing market at DesignandGeography.com […]
[…] Think Long Term in Real Estate I found this interesting chart over at Design & Geography about the housing bubble or real estate prices. Buying a home, or any other real estate, is not an […]
[…] Design&Geography Mapping out our past, present, and future Skip to content HomeAbout ← Housing Price Index for the United States 2000-2010 […]
[…] Unlike prices in the stock market (which are the same no matter where you you live) your experience of the housing bubble was determined by your location in the years 2000-2010. These maps (which I created with Matthew Mulbrandon) give a quick and easy glance at the change in housing prices focusing on the bubble in the United States. They show the Housing Price Index (not inflation adjusted) by state. As you have probably seen in the news, the housing bubble was largest in the West and the South East, in states such as California, Arizona, and Nevada and Florida. Those states had the largest increase from 2000-2006 (height of the bubble) and the largest decreases from 2006-2010. However, from 2000 to 2010 one can see all states (except Michigan) had more moderate price increases. You can learn more about the housing market at DesignandGeography.com […]
[…] you can see in the chart above for the years spanning from 2000 through 2006, the years covering the inflation phase of the […]
[…] according to the Case-Schiller Housing Index, home prices in the 2000’s housing bubble increased about 90% in six […]
Very good article but now I have no doubt that property prices in U.S. is increasing, this is a definite sign that the real estate market is reactivating