A lot of ink has been spilled over the surge in home prices since the beginning of the coronavirus pandemic. But the truth is, the pandemic swell continued a trend already in progress. Over the past 10 years, the typical home in the United States has more than doubled in value. Since 2000, it has more than tripled.
Unfortunately, that appreciation hasn’t been consistent for all homeowners, according to a study by CoreLogic, a real estate data and analytics company.
From 2000 to 2006, values among homes in the top 10 percent (that is, the most expensive homes) rose 91 percent, and even the values of homes in the lowest 10 percent went up 74 percent. The ensuing subprime mortgage crisis and economic downturn affected all price ranges, but many homes were back on an upward trajectory by the end of 2012. At that point, the top 10 percent of homes were 76 percent above their average value in 2000. But homes in the 10th to 20th percentiles were 4 percent less valuable, and homes in the bottom 10 percent were worth about 34 percent less.
After 2012, the value of homes in all price tiers turned upward — but, as always, not equally. By June 2019, the most expensive 10 percent of homes were up 159 percent over their 2000 value, while the bottom 10 percent were up only 7 percent. As of this June, the top 10 percent of homes were up 299 percent since 2000, while the bottom 10 percent were up 48 percent.
This week’s chart, based on data from CoreLogic, shows the average home appreciation at telling moments since 2000, at both the upper and lower ends of home prices.
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