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What the numbers say: While U.S. housing market prices have begun to lower from the incredibly high prices of the past two years, some metro areas are still seeing price growth. Miami, Florida, saw the highest price increase for housing from Feb. 2022 to Feb. 2023, with a 15.6% increase, and Houston, Texas, had the second highest growth in price with 6%. The demand for affordable housing is still high in many states. Relevance: Many residents have struggled to purchase a home over the past few years, so many have rented apartments. The rise in pricing for luxury apartments has priced out many of the renters those buildings were said to be targeting. Austin, Texas, has particularly seen a boom in apartments, as the city saw a 51% growth from 2012 - 2021. Companies such as Tesla, Oracle, JPMorgan Chase, and Charles Schwab have all expanded to the area, initially because of the cheaper housing. But now, the expansions are helping drive up the price of housing. What's next: Other states, such as California, Massachusetts, New York, and Washington, are all trying to make it easier to develop apartments on land previously designated for single-family homes or other uses. The idea is to promote population density in those areas, providing more housing to lower the price of individual units. |
