Americans are taking to the city lifestyle more and more, and while the suburbs are gaining traction as millennials reach the peak age to start a family, urban living doesn’t seem to be slowing down.

Zillow released a report measuring home value trends in urban settings versus suburban settings, finding that city home values are outpacing those in the suburbs.

The analysis was based on a survey Zillow conducted to determine how people define the communities in which they live– rural, suburban or urban. By using characteristics of those places and defining ZIP codes, Zillow broke down the shifting of home values over one and five years.

[Tweet “This trend, in part, reflects home buyers’ changing preferences, says Gudell”]

urban walkable lifestyle

Artens / Shutterstock.com

“This trend, in part, reflects home buyers’ changing preferences, as they seek amenity-rich, dense and walkable areas that are often closer to their workplace,” said Zillow chief economist Dr. Svenja Gudell, in a statement.

“In the future, this lifestyle trend will change some suburbs as we know them, and they’ll start to feel more urban as buyers move further from city centers in search of affordable housing in communities that still feel urban.”

  • The average home in the city is worth 2 percent more than the average suburban home. Compare this to 2015 when the average urban home was worth 1.2 percent less than the average suburban home.
  • The trend is particularly prominent in big cities with young populations, like Boston, Seattle and Washington, D.C.
  • The data show changing demographics within urban settings and shifting preferences for a different lifestyle as well as the higher cost of urban development.

In the nation, the 2015 urban Zillow Home Value Index was $269,036, which is an annual change of 7.5 percent and a 28.4 percent five-year uptick. This is compared to $263,987, the ZHVI of houses for sale in the suburbs, which marks a 5.9 percent annual increase and a 21.1 percent five-year increase.

[Tweet “Urban ZHVI in SF increased 14 percent annually “]

  • In San Francisco, the urban Zillow Home Value Index in 2015 was $927,890.
  • The urban one-year ZHVI change was 14 percent and the five-year increase was 65.3 percent.
  • In San Francisco suburbs, the 2015 Zillow Home Value Index was $910,306.
  • The ZHVI increased 13.7 percent annually in the suburbs and 58.7 percent on a five-year basis.
Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×