Affordable homes becoming a rarer commodity in today’s real estate market | Real Estate

Having trouble finding an affordable-priced home? You’re not alone.

Several metro areas in Florida, led by Miami, have seen some booming prices well within the past decade.

A recent study by Point2, an international real estate search portal, shows that in just 6 years, Miami’s median home (all residential type) prices jumped from around $290,000 in 2018 to $583,000, marking it as the third-quickest doubling among the 100 largest U.S. cities.

Tampa matched that doubling power, with homes going from $213,500 to $430,000 within the same short span as Miami.

Home prices also increased twofold in cities such as Jacksonville, Orlando and St. Petersburg in the past 6 to 8 years.

But, the doubling of prices hasn’t been confined to Florida.

In fact, the report notes that prices have doubled in less than 10 years in 68 of the country’s largest 100 cities. Detroit, for example, has shown a doubling of prices in just 4.9 years since 2019 to lead all major cities.

Baltimore and Spokane, Wash., match Miami and Tampa (doubling since 2018), “potentially in light of investor interest and urban revitalization efforts,” the report notes. For the study, New York was split into five boroughs.

Arizona had four cities listed among the top 12 fastest doubling of home prices.

Of course, not every area has doubled that quickly. It has taken homes in Anchorage more than 21 years to double to today’s median of $359,000. Three cities in Virginia and urban Honolulu also were atop that list.

The Point2 homes study showed that, in 36 major cities, the price took more than 10 years to double.

Over the past 10 years, the median-priced home in the U.S. went from around $200,000 to $400,000, the report said, pointing to “an unrelenting storm” of inflation, tight supply and surging demand.

Irvine, CA, considered the “most expensive big market in the U.S.,” has had home prices double from $750,000 to $1.5 million since 2017.

One thing to note: In 45 of the country’s 100 major cities, the median price for single-family dwellings has doubled faster than that of all residential property types combined.

Philadelphia and Brooklyn NY led that category. Miami was not in the top 10.

The average Philly home took about 19 years to double in price, but it took eight fewer years for single-family dwellings to go for twice the price and reach today’s $201,000.

“One of the main reasons behind single-family homes picking up pace much faster than other types of housing is, of course, the pandemic,” the report states, noting that prospective home buyers began prioritizing space and greenery.

Point2’s conclusion is this: “With interest rates slated to decrease throughout 2024, more potential buyers may be able to afford homes, leading to an even greater increase in the housing market’s demand.

“But, if there’s one thing we’ve learned from recent (unprecedented) times, it’s that accurate pricing forecasts are getting tougher and tougher to make.”