This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Prices in America's 'Bluest' Metros Surging Rapidly

NEW YORK ( TheStreet) -- Housing has always been a political hot potato in a country where the government has heavily subsidized homeownership.

On Election Day, as voters head to the polls to elect governors in New Jersey and Virginia and new mayors in the cities of New York, Boston and Detroit, online real estate company Trulia offers some fresh analysis on the performance of home prices in "Red" and "Blue" America.

Trulia identified the reddest and bluest metros in the U.S. based on the 2012 presidential elections. Reddest metros were those where candidate Mitt Romney won by the largest margin over President Obama, while the bluest metros were those cities where Obama won over Romney by the widest margins.

Among the top 100, 68 are blue and only 32 are red, by Trulia's definition.

It turns out, in the reddest metros, price gains have typically been much slower than the national average of 11.7%. Only Bakersfield, Calif. saw yearly price gains of more than 15%.

In contrast, seven of the 10 bluest metros saw price gains of more than 15% year-over-year. Four of the six bluest metros are in California: San Francisco, Oakland, San Jose and Los Angeles.

Of course, the blue metros suffered more during the housing crash, so home prices in these metros are rebounding more rapidly.

Also, residents in blue metros have bigger housing issues than red metros. Only 57% of for-sale homes are affordable to the middle class in blue metros vs. 67% in red metros, an analysis of price-per-square foot and median incomes shows.

Also, the unemployment rate is also higher in blue metros at 7.7% vs. 6.6% in red metros.

This dispartity could influence upcoming budget battles according to Trulia. "[T]he politicians representing Blue America will be under more pressure from their voters to fight for policies that could reduce unemployment and make homeownership more within reach of the middle class," writes economist Jed Kolko.

-- Written by Shanthi Bharatwaj in New York.

>Contact by Email.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
XHB $28.19 -1.80%
TRLA $48.36 3.14%
AAPL $93.00 -1.30%
FB $99.39 -1.60%
GOOG $673.60 -1.50%


Chart of I:DJI
DOW 15,603.58 -311.16 -1.96%
S&P 500 1,820.07 -31.79 -1.72%
NASDAQ 4,224.9550 -58.6370 -1.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs