Detroit home prices among fastest-growing in the U.S., report says
(CBS DETROIT) - Detroit has one of the fastest-growing home prices in the country since 2020, according to a report looking at the impact of COVID-19 on property values.
The Mortgage Calculator's recently issued report on U.S. home price growth compiles data from spring 2020 through fall 2024 as provided by Redfin's U.S. Housing Market Overview and Zillow Home Value Index. Specifically, the company reviewed the data on 35 cities with a population of 200,000 or more.
This third-party analysis is independent of – but parallels – Detroit Mayor Mike Duggan's report on Tuesday that property values in the city increased last year.
Irvine, California, topped the list in the Mortgage Calculator report, showing an average home price of $882, 716 in March 2020 and an average home price of $1,615,304 in October 2024, for an 82.99% increase.
Detroit was the second-highest on that chart with an average home price of $46,586 in March 2020 and an average home price of $80,127 in October 2024, for a 72% increase.
The cities of Fayetteville, North Carolina; Miami, Florida, and Tampa, Florida; finished out the top five of overall home price increases.
Economic uncertainty at the start of the COVID-19 pandemic in spring 2020 included a spike in unemployment and a slowdown in home sales, the Mortgage Calculator report said. Furthermore, interest rates hovered above 7%, which was higher than in previous years.
An increased reliance upon, and interest in, remote work also settled in during that time.
"Working remotely allowed many individuals previously tethered to city centers by their workplace to continue their careers while potentially increasing or maintaining their quality of life at a much lower cost. Understandably, this has been an excellent opportunity for many workers to move to lower-cost cities without sacrificing their jobs," the report said.