Miami’s long reign as the nation’s hottest real estate market is over, with Detroit now leading the way in home appreciation growth.
Fortune review reported that house prices rose 5.2% year-on-year in November 2023, the largest annual growth rate recorded since January.
Detroit, an auto manufacturing center until the 1970s, had the largest year-over-year gain, with an 8.7% increase, knocking Miami out of its 16-month run at the top spot in most popular cities.
The news is significant for the Motor City, considering that as recently as 2010, homes were being sold in Detroit for $1 and one in five homes in the city were empty. Downtown Detroit has been revitalized in recent years, with a construction boom leading to an increase in green space, businesses and housing.
Miami didn’t fall too far, however, coming in second place with 8.3%. Charlotte, North Carolina, finished in third place with 7.4 percent.
COVID-19 pandemic has pushed millions of people to move while still maintaining their jobs, as working from home has become commonplace for computer-based workers. One of the most popular places Americans moved to was the Sunshine State.
Business Insider reports that Florida’s population jumped 1.9% between 2021 and 2022, a net gain of 417,000 new residents. It was the first year since 1957 that Florida held the distinction of being America’s fastest-growing state.
As a result, demand for housing there has skyrocketed, and in September 2023, Zillow named Florida the second most valuable real estate market in the United States. Major real estate markets have remained hot throughout the pandemic, defying the belief that house prices would fall as interest rates held steady. climb.
“This continued strength remains notable amid the nation’s affordability crisis, but speaks to the pent-up demand driving up housing prices,” said Selma Hepp, chief economist at CoreLogic, according to Fortune. “Markets where prolonged inventory shortages have been exacerbated by the lack of new homes for sale have seen notable price increases over the course of 2023.”
CoreLogic attributes home value gains to employment gains from the Inflation Reduction Act and CHIPs Act as “helping to boost housing demand.”
