Home Prices in Smaller U.S. Counties made Softer Landings

Itrnhas long been evident that some parts of the country such as California,rnFlorida and other Sun Belt states were hit harder by price declines during thernhousing crash than other areas such as New England and some southern and Midwesternrnstates.   Now a housing brief from thernU.S. Census Bureau further defines the damage, showing that median home values in many small counties across the nationrnheld steady after the most recent recession, while values in large countiesrndeclined.</p

Thernbrief, Home Value and Homeownership Rates:  Recession and Post-Recession Comparisons from 2007-2009 to 2010-2012 uses the American Community Survey three-year estimates to focus onrnhomeownership rates and home values for smaller areas.  Census figures show that between 2007-2009rnand 2010-2012, the median home value decreased nationally by $17,300 to arnpost-recession value of $174,600.  Medianrnprices decreased in 28 states and increased in 19 states. </p

In 66.9 percent of counties withrnpopulations between 20,000 and 65,000 (1,038 counties) the median home value inrnthe post-recession period of 2010 to 2012 was not statistically different fromrnthe recession period of 2007 to 2009.  Similarlyrnthe Census Bureau found that the median home values in 37 of the 50 smallestrncounties showed no statistical differences between the two periods.  In contrast, median home values in 43 of thern50 largest counties declined over the same period. </p

“The American Community Surveyrnis the only data source that has the capability to show us, how the economicrnsituation in these smaller counties compares with the nation as a whole, asrnmeasured by these key housing indicators,” said Arthur Cresce, anrnassistant division chief with the Census Bureau’s Social, Economic and HousingrnStatistics Division. “The American Community Survey statistics arernimportant because local businesses, local governments as well as homebuyers andrnrenters can use it to make informed investment, policy and personalrndecisions.”</p

Smaller counties also demonstratedrnmuch larger swings in homeownership rates than their larger counterparts.  In the 2010-2012 period the national homeownershiprnrate declined by 1.7 percent from the earlier period to 64.7 percent.  The change in the 50 most populous countiesrnranged from a decrease of 0.4 percent in Westchester County, New York, to arndecrease of 4.7 percent in Maricopa County, Arizona while in the 50 leastrnpopulous counties the changes ranged from a decrease of 9.5 percent in WarrenrnCounty, North Carolina to an increase of 8.5 percent in Gonzales County, Texas.</p

The District of Columbia had thernlowest homeownership rate at 41.6 percent followed by New York at 53.9 percent.rnWest Virginia had the highest homeownership rate (72.9 percent) and lowestrnmedian home value ($98,300), while Hawaii had the highest median home valuern($503,100) in 2010-2012.  Only ninernstates did not show a significant change in homeownership rates between thernrecession and post-recession periods; all other states had lower homeownershiprnrates.</p

Of the 50 largest metropolitan areasrnin terms of population, 49 had a significant decrease in their homeownershiprnrates. The only metropolitan area whose homeownership rate did not decline fromrn2007-2009 to 2010-2012 was the Oklahoma City area, which was unchanged at 65.2rnpercent.</p

Of the smaller counties, McDowellrnCounty, W.Va., had the lowest median home value at $39,900, and Teton County,rnWyo., had the highest median home value at $705,600.

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