Median residential property values are reaching new peaks in more than half of the largest housing markets in the United States, new research shows. But a closer look at which homes are regaining value reveals an uneven recovery in the biggest markets, according to the August property market report from real estate data firm Zillow.
In 24 of the nation’s largest 35 markets, the homes in the bottom third of the market are least likely to have recovered the value lost when the housing bubble burst. Detroit has seen one of the least balanced recoveries following the recession. Nearly two thirds of the most expensive homes in Detroit have regained the value lost when the market collapsed.
The typical top tier home value in Detroit is $284,800, higher than it was during the housing bubble. In comparison, homes in the bottom third have only regained 33.7% of their lost value and are now worth a median of $53,000. Only 10.6% of these homes have fully returned to their peak values.
As homes are often the most expensive asset someone owns, the recovery contributes to the growing wealth gap across the country. Household incomes show a similar pattern of inequality, according to newly released Census data. The median household income across the United States increased in 2016, but those in the top 205 of earners took home more than half of the overall income.
