Only one-third of homes in the United States have seen their value surpass pre-recession levels—despite chatter about price recovery, according to a report from Trulia.
A number of averages measuring the U.S. housing market, from the S&P CoreLogic Case-Shiller Index and the FHFA Housing Price Index to sites like Zillow’s monthly median price, show the national housing market has met or exceeded its previous peak reached in 2007. But price recovery has been very uneven, with some cities like Las Vegas, Nevada, and Fort Lauderdale, Florida, seeing very little recovery at all, according to Trulia’s report released last week.
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"These aggregate measures use the average changes in sales prices of homes that sell, and thus don’t necessarily capture how the current value of individual homes compare to their pre-recession peaks," Trulia wrote in its report.
The site found that only 34.2% of homes in the United States had returned to their pre-recession values, painting "a vastly different picture of the housing market recovery."
Since the housing market bottomed out in 2012, recovery has averaged just 5% to 6% each year, according to the property site. At that rate, 100% of U.S. homes wouldn’t reach their 2007 values until September 2025.
Trulia’s report does not break out the luxury market.
One of the slowest markets to recover has been Las Vegas, where median home value in March was $214,630, a far cry from the pre-recession peak of $306,028. Sin City has only seen 0.6% of its homes recover the value destroyed during the market collapse, according to the report.
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The reason for that has primarily been stagnant income growth. Incomes in Las Vegas, for example, have fallen 5% since the before the recession.
But many major cities have seen more tepid recovery than one might expect. Only 5% of homes in Chicago have recovered to their pre-recession value, one-fifth of homes in Long Island and New York City have recovered, and just over one-third have recovered in San Diego and Los Angeles.