Urban Institute has released a new report titled Why the Most Affordable Homes Increased the Most in Price Between 2000 and 2019. The report investigates trends in housing affordability in the 21st century, finding that home prices at the low end of the market have increased at a faster rate than any other homes.
"Between 2000 and 2019," the report reads, "the house price index has almost doubled, with a larger increase occurring at the low end of the market. Home prices in the lowest 20th percentile have increased 126 percent while prices in the top 20th percentile have increased 86 percent.
The report finds that prices on lower-end homes appreciated most in metro areas with “higher employment growth, stronger zoning and land use regulation, and less land available for development.” The researchers warn that growth in lower-end home prices could lead to increased residual income inequality and displacement.
The report can be found here.