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Neighborhood Appreciation Rates
Know which neighborhoods have appreciated the most before you buy. You can search for neighborhoods where median house values have increased the most in any area of America.
What we provide
NeighborhoodScout reveals the percentage change in median house values for every neighborhood in America - from 1990 to present. This shows neighborhoods that have continued to appreciate through both up and down real estate markets, providing exclusive insights into which neighborhoods are likely good investments for the future. Remember the stock market in 1999 - everyone appeared to be able to pick great stocks because most stocks were rising, similar to what is occurring in real estate in many markets today. But only select stocks did well after the downturn in 2000-2001. Real estate markets are likewise cyclical, and NeighborhoodScout's data take that into account.
Las Vegas neighborhoods with the highest
appreciation rates.
This is an example of what NeighborhoodScout will deliver to you when you subscribe. The darker colors depict those neighborhoods in Las Vegas that have appreciated the most, compared to the lighter color neighborhoods that have appreciated the least. Subscribers can get such maps in seconds, zoom into them to see more street detail, and select specific neighborhoods to see individual appreciation rates. The data cover the entire nation at the neighborhood level.
These exclusive appreciation data at the neighborhood level help home buyers and real estate investors separate good performing neighborhoods from those that appear to be appreciating well right now, but that history has shown to lose their value more easily in past downturns. Since a home purchase is often the largest single investment for a family, such exclusive insights can be invaluable.
NeighborhoodScout has calculated appreciation rates for each neighborhood in America as a percentage change in the median house value from 1990 to present (e.g., 84%). We also show how each neighborhood's appreciation rate compares to other neighborhoods in the nation, and within the same state (e.g., 9 relative to the nation, 5 relative to California [10 is highest]). This makes comparisons of house appreciation rates equally easy for professional investors and individual homebuyers. In this example, the neighborhood is one of the highest appreciating in the nation, but is only average in appreciation relative to other neighborhoods in the state of California.
About the Data
Our data are designed to capture changes in the value of single-family homes at the neighborhood level. Different neighborhoods within a city or town can have drastically different appreciation rates. NeighborhoodScout vividly reveals such differences (see example above). Our data are built upon median house values in each neighborhood, and combine data from the United States Bureau of the Census with quarterly house resale data provided by Fannie Mae and Freddie Mac. The data reflect appreciation rates for the neighborhood overall, not necessarily each individual house in the neighborhood.
Our data are calculated and updated every three months for each neighborhood, approximately two months after the end of the previous quarter. Each quarter, Fannie Mae and Freddie Mac provide their most recent mortgage transactions. These data are combined with the data of the previous 29 years to establish price differentials on properties where more than one mortgage transaction has occurred. The data are merged with neighborhood-specific median house values from the Census Bureau, creating an updated historical database that is then used to estimate the median house values for each neighborhood.
These resultant neighborhood appreciation rates are a broad measure of the movement of single-family house prices. The appreciation rates serve as an accurate indicator of house price trends at the neighborhood level.
Example:
Once a subscriber clicks on any neighborhood, the actual appreciation rate is shown, along with how that appreciation scores relative to the state and nation.
How are the data calculated?
Neighborhood appreciation rates from NeighborhoodScout are based on both median house value data reported by respondents via the U.S. Bureau of the Census, and a weighted repeat sales index, meaning that they measure average price changes in repeat sales or refinancings on the same properties. This information is obtained by reviewing repeat mortgage transactions on single-family properties whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac. Neighborhood appreciation rates are updated each quarter as additional mortgages are purchased or securitized by Fannie Mae and Freddie Mac. The new mortgage acquisitions are used to identify repeat transactions for the most recent quarter.
“NeighborhoodScout is one of the most interesting sites”
— The Wall Street Journal
“What intrigued me was how precise and comprehensive the site's search engines are in helping consumers find neighborhoods to match their criteria and needs.”
— Ron Roel, Real Estate Editor,
New York Newsday
What transactions are covered in the appreciation rate data?
Neighborhood appreciation rate data are based on transactions involving conforming, conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac. Only mortgage transactions on single-family properties are included. Conforming refers to a mortgage that both meets the underwriting guidelines of Fannie Mae or Freddie Mac and that doesn't exceed the conforming loan limit, a figure linked to an index published by the Federal Housing Finance Board. Conventional means that the mortgages are neither insured nor guaranteed by the FHA, VA, or other federal government entity.
Mortgages on properties financed by government-insured loans, such as FHA or VA mortgages, are excluded, as are properties with mortgages whose principal amount exceeds the conforming loan limit. Mortgage transactions on condominiums or multi-unit properties are also excluded.
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