Homes in these 15 cities were hit hard by the financial crisis, and now their prices are booming

source
REUTERS/Phil Noble

Since the housing crisis, foreclosed homes all around the country have boomed – they’ve gained almost twice as much value as other homes, according to new analysis from Zillow.

Since the lowest point of the housing bust, the average US home has risen 22% in value, and the average foreclosed home has risen 39%. In many markets, foreclosed homes are more valuable now than they’ve ever been.

But the original owners of those homes have been left behind in the recovery, and haven’t been able to benefit from the increased value.

“During the run-up to the housing bubble, many low-income earners bought homes, and the homeownership rate rose from about 65 percent in the mid-1990s to almost 70 percent in 2006,” the Zillow report states. “When home values crashed in 2007, millions of homeowners had to walk away – abandoning their initial investment and missing the opportunity to gain equity as home values recovered.”

As such, the housing crisis further worsened the gap between the rich and poor. Losing their homes during the foreclosure crisis not only resulted in “forcing them to pay ever-increasing rents,” but also in “locking them out of the benefits of the housing market recovery,” according to Zillow Chief Economist Dr. Svenja Gudell.

The following slides show the metropolitan areas where the change in value for foreclosed homes has been especially high. They also include the value change from the lowest point in the housing bust to the current value, for both foreclosed homes and all homes in the area.


Los Angeles, CA

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A newly built single-family home that is sold is seen in San Marcos, California, January 30, 2013.
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REUTERS/Mike Blake

Foreclosed homes value change: 51.2%

All homes value change: 45.2%

Source: Zillow


Miami-Fort Lauderdale, FL

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A new home development is shown in Miami January 26, 2010.
source
REUTERS/Joe Skipper

Foreclosed homes value change: 79.3%

All homes value change: 64.6%

Source: Zillow


Atlanta, GA

Foreclosed homes value change: 53.2%

All homes value change: 37.1%

Source: Zillow


San Francisco, CA

caption
A condominium is put up for sale in San Francisco, California August 14, 2008.
source
RETUERS/Robert Galbraith

Foreclosed homes value change: 82.7%

All homes value change: 67.7%

Source: Zillow


Riverside, CA

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A foreclosure sign in front of a home in Perris, California May 2, 2007.
source
REUTERS/Mark Avery

Foreclosed homes value change: 71.5%

All homes value change: 63.3%

Source: Zillow


Phoenix, AZ

caption
Workers remove wood panels from the foundation of a house being constructed in Phoenix, Arizona, August 23, 2011.
source
REUTERS/Joshua Lott

Foreclosed homes value change: 81.1%

All homes value change: 63.9%

Source: Zillow


Seattle, WA

caption
A general view is seen of the unsanctioned homeless tent encampment Nickelsville in Seattle, Washington Oct. 8, 2015.
source
Reuters/Shannon Stapleton

Foreclosed homes value change: 50.1%

All homes value change: 48.9%

Source: Zillow


San Diego, CA

caption
Row homes valued at $400,000 each, which are offered for free in a “buy one, get one free” deal, are seen in Escondido June 3, 2008.
source
REUTERS/Mike Blake

Foreclosed homes value change: 53.2%

All homes value change: 45.8%

Source: Zillow


Tampa, FL

caption
Tampa, FL.
source
iStock

Foreclosed homes value change: 64.9%

All homes value change: 51.1%

Source: Zillow


Denver, CO

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A foreclosed house for sale is pictured in the Green Valley Ranch development in Denver, Colorado July 26, 2007.
source
REUTERS/Rick Wilking

Foreclosed homes value change: 75.1%

All homes value change: 62.2%

Source: Zillow


Portland, OR

caption
Sold homes are seen in the southwest area of Portland, Oregon March 20, 2014.
source
REUTERS/Steve Dipaola

Foreclosed homes value change: 52.7%

All homes value change: 47.2%

Source: Zillow


Sacramento, CA

caption
A sign is posted near a cluster of vacant homes in the Sacramento San Joaquin River Delta town of Isleton, California September 4, 2013.
source
REUTERS/Robert Galbraith

Foreclosed homes value change: 74.1%

All homes value change: 61.7%

Source: Zillow


Orlando, FL

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Orlando, FL.
source
Jeff Krause | Flickr

Foreclosed homes value change: 68.7%

All homes value change: 54.3%

Source: Zillow


Las Vegas, NV

caption
Homes on Edgeworth Place for sale are seen in Las Vegas October 4, 2007.
source
REUTERS/Adam Tanner

Foreclosed homes value change: 90.2%

All homes value change: 77.7%

Source: Zillow


San Jose, CA

caption
A San Jose neighborhood.
source
Wikimedia Commons

Foreclosed homes value change: 79.5%

All homes value change: 73.4%

Source: Zillow


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