Detroit Passes Miami As The Fastest-Appreciating U.S. Housing Market
Miami’s long reign as the nation’s hottest housing market is over, and Detroit is now at the top of home appreciation growth.
Fortune Magazine reported home prices shot up 5.2% year-over-year in November 2023, the most substantial annual growth rate recorded since January.
Detroit, an auto manufacturing hub until the 1970s, posted the highest year-over-year gain at an 8.7% increase, knocking Miami from its 16-month run in the top spot of highest-appreciating 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 houses in the city was empty. Detroit’s downtown area has been revitalized in recent years due to a construction boom leading to a rise in greenspaces, businesses, and housing.
Miami didn’t fall far, landing in second place at 8.3%. Charlotte, North Carolina, finished in third place at 7.4%.
The COVID-19 pandemic caused millions to relocate while keeping their jobs, as working from home became commonplace for millions working in front of a computer. One of the most popular places Americans relocated to was the Sunshine State.
Business Insider reports Florida’s population jumped by 1.9% from 2021 to 2022 — a net gain of 417,000 new residents. It’s the first year since 1957 that Florida held the distinction of America’s fastest-growing state.
As a result, the housing demand skyrocketed, and in September 2023, Zillow named Florida the second-most valuable real estate market in the U.S. The top housing markets have stayed hot through the pandemic, defying the belief that home prices would drop as interest rates continue to climb.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” Selma Hepp, CoreLogic chief economist, said according to Fortune. “Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
CoreLogic credits these gains in home values to job gains thanks to the Inflation Reduction Act and the CHIPs Act, “helping to spur housing demand.”