Charting the Housing Collapse

More

Check out this chart (via Calculated Risk) based on the newly released Case-Shiller Home Price Index. The Index was up in April. But what I find most interesting is how much cities and regions vary in the way they were hit by the housing bubble and subsequent collapse. The numbers speak for themselves.


Prices are down more than 50 percent in Las Vegas and Phoenix and between 40 and 50 percent in Miami, Tampa, and Detroit. Dallas suffered only a 5 percent decline, while prices in Denver dropped by just 7 percent over the cycle. Prices are off by 13 percent in Boston, 21 percent in New York, and 28 percent in Washington, D.C. That said, it's also clear that the distribution of these losses has been quite uneven within regions with established neighborhoods close to the core holding much better than remote suburbs and exurbs.

Most experts expect housing prices to decline further as federal supports are withdrawn. Recall it took the better part of two and half decades for housing prices to rebound after the Great Depression. My own hunch is that there is still quite a ways to go, especially in over-built regions like Las Vegas, Phoenix, and Miami. But even in these places, more central locations are likely to hold up better. Price declines in the walkable areas of South Beach for example, while considerable, have been significantly less than in downtown Miami or less central and walkable areas. In particular, walkability and neighborhood quality seem to be emerging as the best hedge against massive housing price declines. All of that said, I'd still advocate renting, or at least a wait-and-see approach to buying, while the market remains in such flux.

Jump to comments
Presented by

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
Get Today's Top Stories in Your Inbox (preview)

Social Security: The Greatest Government Policy of All Time?

It's the most effective anti-poverty program in U.S. history. So why do some people hate it?


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Adventures in Legal Weed

Colorado is now well into its first year as the first state to legalize recreational marijuana. How's it going? James Hamblin visits Aspen.

Video

What Makes a Story Great?

The storytellers behind House of CardsandThis American Life reflect on the creative process.

Video

Tracing Sriracha's Origin to Thailand

Ever wonder how the wildly popular hot sauce got its name? It all started in Si Racha.

Video

Where Confiscated Wildlife Ends Up

A government facility outside of Denver houses more than a million products of the illegal wildlife trade, from tigers and bears to bald eagles.

Video

Is Wine Healthy?

James Hamblin prepares to impress his date with knowledge about the health benefits of wine.

Video

The World's Largest Balloon Festival

Nine days, more than 700 balloons, and a whole lot of hot air

Writers

Up
Down

More in Business

From This Author

Just In