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Home Prices Rising Fastest In Boomer-Dominated Markets

Asking prices on for-sale homes nationwide rose 7.4% year-over-year in November, and in 10 of the U.S. metros where prices increased the most during that period there is a higher population of Baby Boomers than Millennials, according to the latest Trulia report.

Four of the 10 metros where asking prices rose the most year-over-year were in Florida.

“These sunshine state markets have older populations, and they all have a lower share of millennials than the national average of 21% and a higher share of baby boomers than the average of 24%,” writes Jed Kolko, chief economist at Trulia. 

The metros where prices increased the most include Ventura County, Calif.; Palm Bay-Melbourne-Titusville, Fla.; North Port-Bradenton-Sarasota, Fla.; Oakland, Calif.; Cincinnati, Ohio; Cape Coral-Fort Myers, Fla.; Lakeland-Winer Haven, Fla.; Las vegas, Nevada; Detroit, Mich.; and Atlanta, Ga., respectively.

The average population of those age 50 to 69 was 24%, compared to 21% of those aged 20 to 34 in those top 10 metros that showed the most price increase year-over-year.

“In fact, only one of the 10 markets with the largest price increases in November had a higher share of millennials than the national average—and only slightly,” Kolko says pointing to Las Vegas, which had 22% of its population consist of Millennials. 

And overall, asking prices rose year-over-year in 98 of the 100 largest U.S. metros — everywhere but Little Rock and New Haven.

Asking prices nationwide on for-sale homes jumped 1.5% month-over-month in November, seasonally adjusted.

“Future months will tell whether this was a blip or the beginning of a sustained climb,” Kolko says.

Rents also continued to climb nationwide, rising 6.1% year-over-year in November.

“Still, rent gains have cooled since August in 14 of the 25 largest rental markets, including the Northern California markets of San Francisco, Oakland, and Sacramento,” Kolko says, adding that In November, Denver had the steepest increases in the country, though the typical two-bedroom unit there still rents for less than half of what it would cost in San Francisco or New York. 

View the latest Trulia report here.

Written by Cassandra Dowell

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