Since 2006, four Texas housing markets, as well as one in Colorado, have seen prices skyrocket. Austin, Denver, San Antonio, Houston and Dallas-Fort Worth have all led the United States in housing increases.
Austin home prices have gone up over 60% since 2006, leading the entire United States housing markets, with Dallas- Fort Worth not far behind hitting just over a 50% increase.
While these four Texas areas, plus the lone Colorado, have skyrocketed. Around the United States prices have just risen 2% since 2006, making the difference enormous and costly for these five areas.
The economy is healthy, the big issue comes from the lack of available homes in these areas, causing the prices to skyrocket to meet the growing demand in these market areas.
For instance, the medium home prices in 2006 for San Antonio residents was roughly $140,000. While in 2016, they were sitting at roughly $206,000, which is an increase of 45%. It is not so much that people are hurting for money, it is the opposite.
As the economy has gotten better in recent years, the same goes for employment rates. The problem is that people do not have anywhere to live, the amount of available housing is low which causes the housing market to increase its prices, resulting in the high increases we see here.
Some have compared this jump to the pre-recession years, higher home prices met with a heavy demand for them. It is estimated that 31 of the 50 largest metro areas in the United States are back to pre-recession housing prices.
While the prices to own a home are rising, skyrocketing in some areas, the need and demand is there. With housing costing so much, it is important to shop around and find yourself the best area and best deal available. Paying that much for a house is necessary, it is important to insure your new home as well.
Having the right homeowners insurance is key and will make your new investment safer as well as protected for the long run. There are many great and affordable homeowners insurance rates in the Chicagoland area.