Here's how much you'd have made if you bought a home in these cities 20 years ago
In some places around the U.S., house prices have gone up so much in just a couple of decades that the profits off of a home, whether from selling or from renting it out, could make you feel rich.
That's what personal finance site GOBankingRates found after looking at the median home value 20 years ago and the median home price today, among other data, for its latest report. Here are 16 cities where GBR saw incredible appreciation over the past two decades. (Read GBR's full methodology here.)
Seattle, Washington
- Home value in 1998: $188,300
- Median home price in 2018: $703,600
- Profit from selling in 2018: $515,300
- Profit from renting it out for five years: $145,086
Somerville, Massachusetts
- Home value in 1998: $199,900
- Median home price in 2018: $719,000
- Profit from selling in 2018: $557,100
- Profit from renting it out for five years: $156,537
Hoboken, New Jersey
- Home value in 1998: $157,900
- Median home price in 2018: $819,900
- Profit from selling in 2018: $662,000
- Profit from renting it out for five years: $164,997
Culver City, California
- Home value in 1998: $235,900
- Median home price in 2018: $912,000
- Profit from selling in 2018: $676,100
- Profit from renting it out for five years: $222,027
Bellevue, Washington
- Home value in 1998: $239,300
- Median home price in 2018: $924,900
- Profit from selling in 2018: $685,600
- Profit from renting it out for five years: $168,382
San Jose, California
- Home value in 1998: $272,800
- Median home price in 2018: $980,300
- Profit from selling in 2018: $707,500
- Profit from renting it out for five years: $189,890
Berkeley, California
- Home value in 1998: $274,700
- Median home price in 2018: $995,000
- Profit from selling in 2018: $720,300
- Profit from renting it out for five years: $204,662
Milpitas, California
- Home value in 1998: $264,500
- Median home price in 2018: $1,012,300
- Profit from selling in 2018: $747,800
- Profit from renting it out for five years: $185,746
East Palo Alto, California
- Home value in 1998: $179,700
- Median home price in 2018: $950,000
- Profit from selling in 2018: $770,300
- Profit from renting it out for five years: $186,432
Kailua, Hawaii
- Home value in 1998: $309,100
- Median home price in 2018: $1,095,000
- Profit from selling in 2018: $785,900
- Profit from renting it out for five years: $184,539
Santa Clara, California
- Home value in 1998: $293,100
- Median home price in 2018: $1,098,000
- Profit from selling in 2018: $804,900
- Profit from renting it out for five years: $198,744
Anna Maria, Florida
- Home value in 1998: $232,200
- Median home price in 2018: $1,099,000
- Profit from selling in 2018: $866,800
- Profit from renting it out for five years: $284,807
San Francisco, California
- Home value in 1998: $311,000
- Median home price in 2018: $1,195,000
- Profit from selling in 2018: $884,000
- Profit from renting it out for five years: $236,408
West Hollywood, California
- Home value in 1998: $173,200
- Median home price in 2018: $1,095,000
- Profit from selling in 2018: $921,800
- Profit from renting it out for five years: $240,742
El Segundo, California
- Home value in 1998: $281,200
- Median home price in 2018: $1,248,300
- Profit from selling in 2018: $967,100
- Profit from renting it out for five years: $237,422
Encinitas, California
- Home value in 1998: $277,400
- Median home price in 2018: $1,399,000
- Profit from selling in 2018: $1,121,600
- Profit from renting it out for five years: $219,246
Remember, real estate investments don't always yield returns like these and, depending on your individual situation, you may even be better off renting than buying. But if buying makes sense for you financially and especially if you're in the right place at the right time, data shows it can be an effective way to grow your money.
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