July 18, 2018
Home values can drastically differ in some areas of a metro and foster an environment of housing value inequality between rich and poor.
LendingTree, an online loan marketplace, recently analyzed 50 of the largest metro areas to rank cities based on its home value Gini coefficient. The Gini coefficient ranges from 0 (complete equality where every value is the same) to 1 (complete inequality where one entity has 100 percent of the value and the others have none).
“Inequality is the defining economic debate of our times,” says Tendayi Kapfidze, LendingTree’s chief economist and author of the report. “Since 1980, the majority of income growth in the United States has accrued to the top of the income scale, a trend that accelerated following the 2007-08 financial crisis. Home values have finally recovered from the most recent housing crisis to the extent that affordability is now a concern. In many large cities, the median-priced home is now out of reach of median-income households.”
Overall, researchers found the Midwest dominated the list of the most unequal markets, whereas the West tended to dominate the most equal. The biggest areas of disparity were found in Detroit; Birmingham, Ala.; and Indianapolis. The level of home price inequality is nearly double in these locales when compared to the most equal markets. On the other hand, Salt Lake City; Portland, Ore.; and Denver have the least home price inequality.
The metros with the highest inequality tended to have very low prices for the fifth percentile of home values. For instance, of the 10 most unequal markets, none had a fifth percentile home value of $100,000 or more (and averaged $48,500), according to the report. The most equal markets had a $242,100 average value for the fifth percentile of homes, according to the study.
Researchers also note that high home prices don’t necessarily equate with high inequality. For example, the San Jose and San Francisco metros may have some of the nation’s highest home values but they ranked 41st and 33rd, respectively, out of the 50 largest metros for inequality.
Kapfidze concluded that housing value inequality actually might be a good thing. “Cities with more home value inequality have a wider distribution of home values, which means that families earning lower incomes may still have the opportunity to access homeownership in those cities,” Kapfidze says. “The concurrent presence of high value homes suggests that their economies are vibrant enough to support higher earning jobs as well. Looked at in this manner, home value inequality could be beneficial.”
|Rank||City||Gini Coefficient||95th Percentile Home Price||5th Percentile Home Price||Ratio (95th/5th)|
|9||Kansas City, Mo.||0.352||$398,000||$40,000||10.0|
|16||Louisville/Jefferson County, Ky.||0.339||$464,000||$56,000||8.3|
|34||Virginia Beach, Va.||0.293||$576,000||$103,000||5.6|
|41||San Jose, Calif.||0.270||$2,687,000||$561,000||4.8|
|50||Salt Lake City||0.210||$597,000||$191,000||3.1|
ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME. 520-975-5207 or email me firstname.lastname@example.org. …. VIEW ALL OF WALTERS LISTINGS. Let me know if you are interested in Apartments: CLICK HERE FOR APARTMENTS FOR SALE
Phoenix Commercial Real Estate and Investment Real Estate: Investors and Owner / Users need to really know the market today before making a move in owner user Commercial Properties, Investment Properties and land in Phoenix / Maricopa County, Pinal County / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties. I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also internationalClick here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
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ARE YOU READY TO SELL OR PURCHASE YOUR LAND OR COMMERCIAL BUILDING IN PHOENIX, SCOTTSDALE, MARICOPA COUNTY AND PINAL COUNTY, ARIZONA, CLICK HERE AND PLEASE CALL ME. 520-975-5207 or email me firstname.lastname@example.org
WEEKLY LAND CLOSING UPDATE / THROUGH June 15, 2018 / Phoenix Arizona Metro, Maricopa County, Pinal County.
WEEKLY LAND CLOSING UPDATE / THROUGH May 25, 2018 / Phoenix Arizona Metro, Maricopa County, Pinal County.
WEEKLY APARTMENT CLOSING UPDATE THROUGH June 15, 2018, Phoenix Arizona Metro.
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
- The average age of the population is 34 years old.
- The health cost index score in this area is 102.1. (100 = national average)
- Here are some of the distributions of commute times for the area: <15 min (22.7%), 15-29 min (36.8%), 30-44 min (25.1%), 45-59 min (8.6%), >60 min (6.8%).
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
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Walter Unger CCIM
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Kasten Long Commercial Group
5110 N 40th Street, Suite 110
Phoenix , AZ 85018
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