In the last decade, the economy and housing market experienced sustained growth and unemployment levels shrunk to historic lows. We saw an increase in home sales and values as well as a notable reduction in foreclosures and borrowers who are behind on their mortgage rates. The latter half of the decade came with new challenges as high demand and increasingly constrained inventory contributed to growing affordability challenges for both homeowners and renters. We also saw Millennials start to enter the housing market in force, contributing to a rise in renting by choice.
As a result, some of the country's largest cities have evolved from what they were 10 years ago. Here are five housing markets that changed the most over the last decade:
According to a recent Redfin report, home prices in Fort Lauderdale saw the highest percentage increase from 2010 to 2019. In fact, the median home price increased 161% from $106,000 at the beginning of decade to $278,000 at the end of 2019. This was not the only metropolitan market in Florida to experience strong recoveries, the median home price has more than doubled in Orlando and Miami as well.
As for gross price increase, San Francisco experienced the largest jump in dollar value at a whopping $711,000 over the decade. This price increase is attributed to two main factors, the booming job market and lack of homes for sale in the Bay Area.
The number of homes for sale declined by 77% in Salt Lake City. In 2010, the typical homeowner here stayed in their home for 15 years. Fast forward to 2019 and they expect to stay put for an additional eight years.
From 2010 to 2019, the total rent paid by Austin residents rose by 92.6%, according to a report from Zillow. Austin's rising rents can be attributed to the growing population and the rising cost of housing.
Nationally, median rent increased 36% over the decade, according to research done by Rentcafé. In Oakland, in the same time span, rent increased 108%, almost three times the national average. In 2010, the average Oakland renter paid $1,396 per month and by 2019, average rent increased to $2,905.
What's in store for the next ten years? Find out the latest on current housing and market trends from Freddie's Housing and Economic Research team.