Luxury homes outpace starter homes in most top US markets
Midwest metros gain while Texas declines
Grand Rapids, Michigan, led starter-tier growth at 5.5%, with mid-tier and luxury gains of 3.5% and 3.4%. Milwaukee’s starter, mid and luxury tiers rose 5.2%, 3.8% and 5.1%, respectively, while Cleveland posted 5.1%, 4.0% and 5.3%.
Philadelphia recorded tier gains of 5.0%, 3.4% and 3.3%. Chicago’s starter and mid-tiers each rose 4.7%, and its luxury tier climbed 6.3%.
Chicago also led overall growth at 5.1%, while New York rose 4.9% and Hartford, Connecticut, gained 4.7%. Cleveland and Milwaukee each posted 4.6%.
Four of the five large metros with annual declines are in Texas. Dallas fell 6.3%, Austin 4.3%, San Antonio 2.7% and Houston 2.0%, while Seattle declined 2.6%.
In an August 31 analysis, Fleming said a foreclosure wave requires both job loss and insufficient equity. He found prices in all 50 of the largest markets above February 2020 levels in June, by about 52% on average.
