Cleveland cited as major metro with lowest home price increase over 20 years
A recent study done by Clever found that since 2000, Cleveland has had the lowest increase in home prices. A study by Clever, a company that helps match people with real estate agents, has found that since 2000, Cleveland has had the lowest increase in median homes price - 78% - among the 50 largest metro areas in the country. The study used data from the Federal Reserve, the Bureau of Labor Statistics, and the Zillow Home Value Index to determine the exact location of the typical home value in Cleveland. It also found that Ohio had the fifth lowest increase of any state in the same 23-year period. Other major metro areas included New Orleans, Detroit, Chicago, and Memphis. Miami had the highest increase at 299%, with the median home price rising from $118,450 in 2000 to $472,711 in 2023. The lack of housing supply has been blamed for driving up home prices.
Published : a month ago by msims1, Megan Sims, Megan Sims | [email protected] in Finance
CLEVELAND, Ohio -- A recent study done by Clever, a company that helps match people with real estate agents, found that since 2000, Cleveland has had the lowest increase in median homes price - 78% - among the 50 largest metro areas in the country.
Clever analyzed national, statewide and citywide home prices from 2000 to 2023 using data from the Federal Reserve, the Bureau of Labor Statistics and the Zillow Home Value Index. It found that the typical home value in Cleveland was $119,097 in 2000 and by 2023 it had risen to $211,496.
The study also found Ohio had the fifth lowest increase of any state in the same 23-year timeframe.
Rounding out the five lowest increases for metros were New Orleans, which also had a 78% increase going from $131,771 in 2000 to $235,103 in 2023; Detroit with an 83% increase, from $128,679 to $235,480; Chicago with a typical home price in 2000 of $159,104 increasing to $300,549, an 89% jump; and Memphis, which saw an 104% increase as the median home price went from $113,375 in 2000 to $230,760 in 2023.
Cincinnati and Columbus had the seventh and 13th lowest increases in the country at 110% and 130%, respectively.
Miami had the highest increase in the country at 299% as the median home price went from $118,450 in 2000 to $472,711 in 2023. New York City placed 25th on the list with a 165% increase.
Analyzing data over 30 years, Clever determined that houses are relatively more expensive now for millennials, when compared to median household incomes, than they were for boomers at the same age as inflation has continued to rise faster than home prices.
Many boomers were in their 30s in 1985 when median home prices were 3.5 times more expensive than median household incomes; according to Clever. The median home price was $83,200 while the median income was $23,620
Most millennials were at least in their 30s in 2022 when median home prices were 6.3 times more expensive than the median household income. The median income was $74,580 while the median home price was $468,000.
Clever noted in the study that the lack of housing supply has been key in driving up home prices, and also that the average home today is 50% larger than in 1985.
Topics: Real Estate