Detroit is currently leading the country in terms of house appreciation growth, replacing Miami as the nation’s most active real estate market.
According to Fortune magazine, in November 2023, housing prices increased by 5.2% year over year, marking the largest yearly growth rate since January.
Detroit, a center of auto manufacture until the 1970s, saw the largest year-over-year rise, rising 8.7%, to unseat Miami, which had held the top rank for the previous 16 months.
Given that one in five of Detroit’s homes was vacant and that the city’s properties were only selling for $1 as recently as 2010, the news is noteworthy for the Motor City.
The revitalization of Detroit’s downtown region can be attributed to a construction boom that has resulted in an increase in green areas, companies, and residences.
Nevertheless, Miami only dropped a little bit, coming in second at 8.3%. Third place went to Charlotte, North Carolina, with a 7.4% finish.
Due to the COVID-19 epidemic, millions of individuals had to relocate while maintaining their employment, since computer-based workers began to work from home more frequently. The Sunshine State was one of the most favored relocation destinations for Americans.
According to Business Insider, Florida’s population increased by 417,000 new people, or 1.9%, between 2021 and 2022. For the first time since 1957, Florida was the state in the union with the fastest rate of growth.
Due to the enormous increase in housing demand, Florida was ranked the second-most valued real estate market in the United States by Zillow in September 2023.
The leading real estate markets have remained strong during the pandemic, dispelling the myth that as interest rates rise, house values will down.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” Selma Hepp, CoreLogic chief economist, said, according to Fortune. “Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
Gains in employment as a result of the CHIPs Act and the Inflation Reduction Act are credited by CoreLogic as “helping to spur housing demand” in property values.
