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59 » VISIT US ONLINE @ DSNEWS.COM T he 2016 presidential election has dominated national news coverage for months now, and every day, there's a fresh headline about the increasing- ly polarized American electorate. Popularly described as "red state" when the electorate leans Republican or "blue state" when the population leans more Democratic, there are significant cultural and economic differences between these two factions. At $27 trillion, residential real estate is the largest asset class in the U.S. It also represents a majority of most Americans' net worth. Given the importance of real estate to our economy, the HouseCanary data science team applied the most accurate real estate valuations in the market to every home in the U.S. What they found is a growing divide between red states and blue states. Just how big is the divide? Big. ese findings, both surprising and alarm - ing, are only the tip of the iceberg. You can find out more and download a full infographic at HouseCanary.com/red-state-blue-state. Who will be our next president? Will it be red or blue who wins? at we do not know. But what we can forecast is that the growing gap in real estate fortunes is only going to widen. Red State vs. Blue State Home Values–A Growing Divide $ 128K 80 % 77 % Source: HouseCanary values as of August 2016. Red state and blue state designations are based on FiveThirtyEight's election projection as of August 16, 2016. (FiveThirtyEight.com). $128k average difference per home. In 1984, the values of homes in red states and blue states were about equal. Since then average home values in blue states have grown much faster than red states and now the average home in blue states is worth $128k, or 1.7 times more than red states. Since 2012, 80 percent of $6 trillion value creation went to blue states. Since the last election in 2012 real estate has recovered from the deep recession. The recovery was highly uneven. Of the $6 trillion in value creation in the U.S. housing market, 80 percent of this value went to blue states. 77 percent of the nation's real estate wealth is in blue states. Of the $27 trillion in total residential real estate values in the U.S., more than $20 trillion of real estate is in blue states and less than $7 trillion in red states. $85K $75K A GROWING DIVIDE IN HOME VALUES 400 300 100 200 0 '84 '88 '92 '96 '00 '04 '08 '12 '16 1984–2016 Average Home Value (in thousands) Blue States Red States Growing Divide WHERE DID THE VALUE GO? $312K $184K 2016 Current Average Home Value +$128K for blue state homes; 1.7x more value than red state homes. blue state real estate is 77% of the total value of homes in the US Since the last election in 2012, the U.S. housing market value has grown by $6 trillion—for a total value of $27 trillion. Here's how America would look if states were sized according to residential real estate values. Since 1988, through a real estate roller coaster of bubbles and busts, a growing divide in housing prices has emerged. 80% ($4.8T) went to blue states $21T 2012 U.S. Housing Market Value $27T 2016 State size indicates residential real estate values Blue States Red States $20.8T $6.2T Republican or Democrat, red or blue state, the average value of your home was almost the same. 1984 RED BLUE REAL * CA Highest Total Value $5.7T NY $1.6T FL $2.0T TX $1.6T GA $0.6T AZ $0.6T $85K $75K 400 300 100 200 0 '84 '88 '92 '96 '00 '04 '08 '12 '16 1984–2016 Average Home Value (in thousands) Blue States Red States Growing Divide WHERE DID THE VALUE GO? WHAT ABOUT THE FUTURE? WHO IS PAYING THE PRICE? 0 5 10 15 20 25 30 35 Average % of income spent on housing Blue States Red States +7.1 26.3 17.2 20.8 33.4 +3.6 2012 2012 2016 2016 % 2019 +$39K +$20K Projected Average Home Value $312K $184K 2016 Current Average Home Value +$128K for blue state homes; 1.7x more value than red state homes. $312K $184K blue state real estate is 77% of the total value of homes in the US Since the last election in 2012, the U.S. housing market value has grown by $6 trillion—for a total value of $27 trillion. Here's how America would look if states were sized according to residential real estate values. Since 2012, the average percentage of income spent on housing increased across the board. But those who live in blue states saw an average increase of 7.1 percentage points, which is nearly double the 3.6 percentage point increase for those in red states. 80% ($4.8T) went to blue states $21T 2012 U.S. Housing Market Value $27T 2016 State size indicates residential real estate values Blue States Red States $20.8T $6.2T Republican or Democrat, red or blue state, the average value of your home was almost the same. The average price of a home in Democratic states is 1.7 times the price of a home in Republican states. Today Over the next 3 years the growth will be the same. But, because today the value is 70% higher in blue states, the growing divide is increasing. With 2x dollar-growth rate, blue home values are forecast to eclipse red homes by $147K by 2019. CA Highest Total Value $5.7T NY $1.6T FL $2.0T TX $1.6T GA $0.6T AZ $0.6T $351K $204K Where did the value go? A Growing Divide in Home Values.

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