Chart of the Day: Slow Growth in House Prices

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The Case-Shiller Home Price Index projects slow growth in house prices for the next four years or so. The chart below (via The Wall Street Journal) tracks the Case-Shiller Index from 2000 through 2014.


After a slight uptick, the index is projected to decline again by about 1.4 percent this year. The cumulative increase for the next five years is projected to be 10.5 percent -- or about 2 percent a year. This will make up about a third of the total loss (28 percent) from peak housing values in 2006.

This seems like an optimistic scenario -- and one that is highly uneven regionally. This small overall increase will be driven by significant increases in a small number of superstar cities and regions, while prices will continue to stagnate and decline across many more places.

So, if you're thinking about buying a house, there's no rush: You have plenty of time before prices start to tick up significantly. And get ready for a long haul before house prices rebound. In The Great Reset, I point out that it took two and half decades for house prices to recover from the 1929 crash.

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Richard Florida is Co-founder and Editor at Large of CityLab.com and Senior Editor at The Atlantic. He is director of the Martin Prosperity Institute at the University of Toronto and Global Research Professor at NYU. More

Florida is author of The Rise of the Creative ClassWho's Your City?, and The Great Reset. He's also the founder of the Creative Class Group, and a list of his current clients can be found here
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