This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Stocks in this article: TRLA XHB SPY DIA QQQ

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.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs