A recent study from BuildZoom highlights an interesting phenomenon; cities that are the most expensive are the least expansive, thus affecting the value of the homes therein. In other words, cities that allow themselves to grow outward remain more affordable versus the ones the don’t – for various reasons (political, geographic, etc.)
Key (interesting) takeaways:
- As a whole, U.S. cities maintained a constant pace of outward expansion into rural territory since the 1950s, but behind the facade two groups of thriving cities are behaving very differently.
- The first group of cities substantially reduced the pace of outward expansion beginning in the 1970s, channeling its economic strength into higher property values. This group includes San Francisco, Boston, New York, Los Angeles, Seattle, San Diego, Washington, Philadelphia, Portland and Miami.
- In contrast, the second group of cities accelerated its outward expansion, channeling economic strength into greater population growth. This group includes cities like Atlanta, Austin, Charlotte, Houston and Phoenix, as well as many others.
Click here to read the full study on BuildZoom.
