When George W. Bush took office, home values in Washington D.C. were 14% less than nearby suburbs. Now, they are worth 27% more, reports Zillow's Aaron Terrazas.
Perhaps more than any other U.S. market, the nation’s capital sharply illustrates the extent of urban renaissance experienced in many cities nationwide, and the diverging post-Recession fortunes of the nation’s urban and suburban communities.
A government program played a large role in the growth of home prices in D.C.
First, the federal government’s first-time home buyer tax credits in 2009 and 2010 had a much larger effect on home values in the District of Columbia than in its suburbs. Between September 2009 and August 2010, median home values in the District of Columbia rose 5.3 percent, from $344,900 to $363,200. Over the same time, home values in the close-in suburbs inside the Beltway increased 2 percent (from $341,900 to $348,700); beyond the Beltway, home values increased 1.1 percent (from $312,300 to $315,800).