Major Cities Hit by Housing Decline May Not Recover Until 2030

By Kyle Chezum Updated on 1/7/2011

1/07/11

A recent mortgage Bankers’ Association study concluded that some major cities, mostly in the southwestern corner of the nation, won’t recover from the housing decline for several decades.  The news is grim but not unexpected for these areas.  Stockton, Modesto, Salinas, and other cities in California, Nevada, Arizona, and Florida made it on the list.

Stockton has been the poster child of the housing decline since the beginning, when it saw an average home price drop of about 75%. Modesto, CA, and Cape Coral, FL, were close behind.  The MBA stated that it does not expect these areas to return to housing value levels equivalent to those enjoyed before the recession until at least 2030.

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