Markets with Worst Appreciation

[Nick Gerli]

Everyone loves to talk about the markets that seeing crazy appreciation - the Boise's and Spokane's of the world - but what about the markets that are lagging the rest? 

The data below highlights 15 large markets with the worst appreciation over the last year. Data is sourced from Zillow and covers the "metro area" for each market. 

Quite an interesting array of markets on this worst performers list. Highlights:

-How about Texas? Dallas, Houston, and San Antonio dominating the bottom of the list. This comes as Texas just posted by far the highest levels of population growth of any state through mid-2020. Could oversupply be an issue?

-Chicago has been a market that has lagged the rest of the US in almost every relevant metric over the last 10 years: income growth, population growth, home price growth, etc. 

-Over half of this list is comprised of state capitals. Raleigh, Richmond, Harrisburg, Baton Rouge, Columbia, Jackson, Oklahoma City, and Des Moines. Could be coincidence...or maybe not?

-Low appreciation might not be the worst thing in the world. It could mean values in these markets are more stable through a downturn. Some of the cities are the ones that performed the best during the real estate crash from 2007-12. 

What are your thoughts? Are you invested or looking to invest in any of these markets?