Across the United States, most communities have recovered from the 2008 recession, which was precipitated by a housing crisis that swept the country. It began in 2006, when favorable interest rates and relaxed lending standards drove up prices. Buyers, some of whom were not well qualified, flooded the market. In 2008, mortgage lenders and investment banks began failing, and Fannie Mae and Freddie Mac entered government conservatorship. By June 2009, the unemployment rate was the highest it had been since 1982, according to CoreLogic.
Housing values nationwide have now recovered, but there are some areas that are still struggling. GOBankingRates looked at the decline in home values since 2007, just prior to the crash, compared with the recovery that has taken place since 2012. Here are the places in each state that are still trying to pull out of the economic crisis of 2008.
In all, the state of Alabama has 44 cities that have suffered an absolute decline in home values during the period from January 2007 to January 2019. The seven cities that make up the Montgomery metro area averaged a decline of 12.89 percent. By contrast, in Mobile, Alabama, home prices were up 21 percent in 2018 over the prior year, according to Attom Data.
None of the cities or town in Alaska experienced an absolute decline in home values from 2007 to 2019. In Fairbanks and Anchorage, housing prices have increased by 10.35 percent and 12.80 percent, respectively, since 2007.
Arizona: Sierra Vista-Douglas
Arizona was particularly hard hit by the housing crisis, but the Sierra Vista-Douglas metro area is still reeling, even as many other areas in the state have fully recovered. Homes in this area have lost an average of 15.36 percent of their value since 2007. The Lake Havasu City-Kingman area, by comparison, lost a combined 23 percent since 2007, but has rebounded to post a gain of 70.1 percent since 2012.
Arkansas: West Memphis
Just five cities in Arkansas posted home value declines from 2007 to 2019, and only one has failed to recover. Homes in West Memphis in Crittenden County have lost a combined 10 percent of their average value since 2007, but have eked out a modest 2.2 percent gain since 2012.
California: Fresno County
Fresno County in California saw a combined decline in average home prices since 2007 of 16.68 percent. Since 2012, however, average values have climbed 60.65 percent. This degree of rebound would be impressive in any other state, but in California, it’s dwarfed by gains of 155.3 percent in Lake County and 125.78 percent in Contra Costa County, just to name a few.
Colorado: Snowmass Village
Colorado was spared much of the impact of the housing crisis and has just three cities with an outright decline in home values since 2007. But resort and vacation markets were hit harder than primary residence markets. Snowmass Village, with its numerous vacation homes, declined 11.4 percent since 2007, and has rebounded just 21.2 percent since 2012.
A wealthy state, Connecticut was hit hard by the housing crisis, with only two cities seeing an increase in home values since 2007. The Hartford metro area included 29 cities that had outright declines in home prices since 2007, with a combined total decrease of 15.49 percent. The area has rebounded since 2102, but prices have only risen by 5.18 percent.
Delaware: Sussex County
Sussex County, Delaware, includes five cities with outright declines in their housing prices since 2007. County-wide, the average price declined a combined 12.64 percent, but has rebounded 26.9 percent since 2012. The entire state was impacted by the housing crisis, with just one city that did not have an outright decline in prices.
Florida was one of the hardest hit states during the housing crisis, with every area seeing declines, many in the double digits, since 2007. But most of the state has rebounded nicely, including the populous Miami-Fort Lauderdale-West Palm Beach metro area, which enjoyed a combined increase in home values of 113.74 percent since 2012. Values in the city of Palatka, however, dropped a combined 23.14 percent since 2007, and rebounded just 35.78 percent since 2012.
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Georgia: Chatham County
Chatham County, which includes Savannah, is still feeling the impact of the housing crisis. This area has seen home values decline a combined 7.78 percent since 2007. But since 2012, values have rebounded 34.58 percent. Atlanta fared much better, as Fulton County, which most of the city is located in, has rebounded 99.25 percent since 2012.
Even the idyllic state of Hawaii was impacted by the housing crisis, and Hilo got the brunt of it. The combined decline in home values from 2007 to 2019 was 6.30 percent, although values have rebounded a combined average 65.81 percent since 2012. Kappa was similarly impacted, but to a slightly lesser degree, dropping 6.08 percent since 2007, and rebounding 55.67 percent since 2012.
Like most of the northern Mountain states, Idaho was relatively unaffected by the housing crisis. In Hailey, however, the combined average home value loss for the period from 2007 to 2019 was 9.43 percent. The area rebounded to post a 38 percent increase in home values from 2012 to 2019.
Illinois: Cook County
Cook County, which is comprised of more than 100 municipalities, including Chicago, saw a decline in home values of 22.49 percent from 2007 to 2019. The area rebounded, but somewhat feebly, showing an increase of 34.07 percent from 2102 to 2019. The entire state of Illinois felt the effects of the crash, with a total of 361 cities that experienced absolute declines in home values from 2007 to 2019.
Indiana: Vermillion County
Vermillion County, which includes Terre Haute, experienced the largest decline in home values in the state from 2007 to 2019 at 24.73 percent. Values increased 31.47 percent from 2012 to 2019, but that was not enough to offset its decline, making it the most affected area in the state.
Iowa: Harrison County
Like several other states in the region, Iowa emerged relatively unscathed from the housing crash. Just two cities in the state recorded absolute declines in home values during the period from 2007 to 2012, and both of them are located in Harrison County. The county saw a combined decrease of 14 percent in home values from 2007 to 2019, and a rebound of 23.35 percent from 2012 to 2019.
Kansas: Harper County
Harper was the only county in Kansas that had more than one city that experienced an outright decline in home values from 2007 to 2019, with the county posting a decline of 23.98 percent. Values rebounded, showing a 47.94 percent increase from 2012 to 2019, but other Kansas counties fared much better. For example, Reno County showed an increase of 142.21 percent from 2012 to 2019.
Kentucky: Boyd County
The entire state of Kentucky had just four cities that saw home values decline in the period between 2007 and 2019, and two of them were in Boyd County. The county is comprised of former industrial towns which were already in decline before the crash, and were disproportionately affected. Of the four cities, however, Earlington in Hopkins County saw the sharpest decline at 7.4 percent, and had the weakest rebound at 1.6 percent.
Bogalusa, in Washington Parish, is one of several cities in Louisiana that experienced a decline in home values since 2007, according to Zillow. Washington Parish as a whole experienced an 11.3 percent decline in home values from 2007 to 2019, and is the only parish in the state that also had a decline — of 4.7 percent — in values from 2012 to 2019.
Maine: Cumberland County
Cumberland County contains two cities, Harrison and Bridgton, which combined for a decline of 6.15 percent in home values from 2007 to 2019. The county has rebounded since 2012, though, having enjoyed an increase in values of 20.65 percent over that time period.
Maryland: Somerset County
In Maryland, 218 cities had declines in their home values from 2007 to 2019. Of those, Somerset County fared the worst. The county had a 24.55 percent decline in home values from 2007 to 2019, the largest decline in the state. Since 2019, values have rebounded by 13.75 percent, but that’s significantly less than in other areas, such as Prince Georges County at 70.6 percent and Baltimore City at 58.3 percent.
The greater Pittsfield area in western Massachusetts, like many of the more remote areas in the state, was hardest hit by the housing crash. After a combined decline of 6.21 percent from 2007 to 2019, the area rebounded by just 14.76 percent from 2012 to 2019, the smallest increase in the state. Housing values in Boston-Cambridge-Newton metropolitan area, by contrast, have increased 43.3 percent since 2012.
Michigan: Tuscola County
Tuscola County, Michigan, was struggling even before the housing crash, with home prices on the decline since 2001. During the period from 2007 to 2019, the county’s combined home values lost a modest 8.9 percent, but if you look at the nearly two decades from 2001 to 2019, the decrease was 21.01 percent. The increase in home values between 2012 and 2019 was just 22.77 percent, far less than the 135.45 percent in Macomb County and the 87.1 percent in Monroe County.
Minnesota: Kanabec County
Kanabec County had the largest decline in the state at 8.5 percent. Its recovery has been meager, with values rising just 27.6 percent since 2012, compared with a 41.44 percent rebound in Hennepin County, which includes Minneapolis.
The Jackson, Mississippi, metropolitan area includes two cities that saw declines in home values from 2007 to 2019. The 17 percent combined decrease is less than the 26.2 percent decrease in the Meridian metropolitan area, but values in Jackson have only recovered to record a 2 percent decrease since 2012. Values in Meridian increased by 12.8 percent during that time.
Missouri: St. Louis
In the St. Louis metropolitan area, 20 cities saw an absolute decline in the average home value during the period from 2007 to 2019, compared with just four cities in the entirety of the rest of the state. The combined decline for the St. Louis area was 22.46 percent. And the recovery was tepid at best: Home values have risen just 15.02 percent since 2012, compared with 41.9 percent in Farmington and 23.25 percent in Kansas City.
The Great Recession seems to have bypassed Montana to a certain degree, as there are no cities in the state that experienced an absolute decline in their home values during the period from 2007 to 2019. Montana’s sparse population and its location in the northern Mountain region, an area that was less affected than other parts of the country, likely contributed to this.
Another northern Mountain state, Nebraska managed to avoid some of the large losses in property values that were seen in other states. In the greater Omaha area, for example, home values actually rose 22.1 percent from 2007 to 2019, and have risen 32 percent since 2012.
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Nevada: Las Vegas
Nevada was one of the hardest hit states in the 2008 housing crisis, and the Las Vegas area in particular was a sort of poster child for the recession. In the greater Las Vegas metro area, which includes Henderson and Paradise, home values were down 13.11 percent from 2007 to 2019. Values have increased an incredible 99.39 percent since 2012.
New Hampshire: Grafton County
In tiny New Hampshire, 57 cities had absolute declines in their home values during the U.S. recession of 2008. The effect of both the recession and the recession recovery has been felt evenly throughout the state, with every county showing a decline between 1.35 percent and 7.13 percent from 2007 to 2019, with an increase between 14.40 percent and 46.5 percent from 2012 to 2019. Grafton County fared the worst, with a 4.83 percent decline from 2007 to 2019 and a modest 14.3 percent recovery since 2012. This area is home to many ski resorts and vacation areas, which have struggled to bounce back.
New Jersey: Atlantic County
Atlantic County, which includes Atlantic City, recorded the state’s largest decline in home values from 2007 to 2019 at 23. 98 percent, as well as its smallest gain in values since 2012 at 47.94 percent. This area’s dependence upon tourism and vacation properties contribute to its struggles to emerge from the housing crisis.
New Mexico: Farmington
Unlike nearby Arizona, Nevada and California, New Mexico managed to escape the U.S. recession relatively unscathed. Of the five cities that recorded absolute declines in housing valuations from 2007 to 2019, two — Bloomfield and Kirtland — are in the Farmington metro area. This area saw a decrease of 11 percent in housing values from 2007 to 2019, with a recovery of just 13.15 percent from 2012 to 2019.
New York: Orange County
In Orange County, New York, just north of New York City, 32 cities reported absolute declines in their home values from 2007 to 2019. The combined drop was 17.92 percent was not the highest in the state–that honor goes to Sullivan County at 20.56 percent. But Orange County has seen an anemic recovery as well, with values increasing just 13.3 percent since 2012. The entire state has struggled to take part in the Great Recession recovery, as the highest increase in values since 2012 is a moderate 31.58 percent in relatively affluent Nassau County.
North Carolina: Rockingham County
Rockingham County recorded a 16.5 percent decline in housing values since 2007. But the area also reported a 3.83 percent decline in values since 2012, making it one of the few areas to have seen no recession recovery at all.
Like several of the states in the northern Mountain region, North Dakota escaped the worst of the housing crisis. None of the areas in the state recorded an absolute decline in home values during the period from 2007 to 2019.
Ohio: Cuyahoga County
Ohio in general and Cuyahoga County in particular were devastated by the housing crisis. These areas were already in decline from deindustrialization. Maple Heights, for example, which is in Cuyahoga County, saw a housing boom in the early 1960s that resulted in nearly all of its available land developed for single-family homes. When the housing bubble burst, home values in the bedroom community declined 44.7 percent from 2007 to 2019.
Oklahoma is the only state in the South that avoided the affects of the housing crisis. The Sooner State had no cities that recorded an absolute decline in housing values from 2007 to 2019. Surrounding states, such as Texas, Colorado, Kansas and Arkansas also fared relatively well, but Oklahoma was a standout in this region.
Oregon: Tillamook County
Tillamook County had three cities that recorded absolute declines in home values from 2007 to 2019, combining for a 6.2 percent decrease. Although Lane County had a much larger decline at 17.7 percent, the recovery in Tillamook was less robust, with values gaining 30.73 percent versus Lane County’s 43.4 percent since 2012.
Pennsylvania: Monroe County
Monroe County had the second-worst average decline in values in the state of Pennsylvania, which was hit particularly hard by the recession. The county includes 22 cities with absolute declines and a combined loss of 21.3 percent.
Rhode Island: Providence County
The smallest state struggled mightily to recover from the Great Recession, which saw 18 cities in Providence County lose home value from 2007 to 2019, for a combined loss of 6.3 percent. Since 2012, values have rebounded 46.64 percent, which is the strongest pace in the state.
South Carolina: Myrtle Beach
As with many areas that are primarily vacation destinations, the Myrtle Beach metropolitan area saw home values in 11 cities drop a combined 15.79 percent from 2007 to 2019. The 27.78 percent recovery since 2012 has been less robust than the rebound in Charleston, which had an impressive 47.94 percent regain.
This northern Mountain state fared well, along with its neighbors. No cities in South Dakota recorded an absolute drop in housing values from 2007 to 2019.
Tennessee has rebounded relatively well from the housing crash, but Trenton has not. The state as a whole had just 10 cities which experienced declines in home values from 2007 to 2019. Trenton, in Gibson County, was the second worst of these at 11.5 percent, but the city is still in decline, by 0.8 percent, since 2012.
Texas might be the state that fared the best through the housing crisis, considering its size and population. Just three cities experienced a decline in housing values from 2007 to 2019, with the worst decline being just 3.6 percent. Ranger, in Eastland County, has been losing population for some time, and has seen home values decline since at least 2002.
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Another northern Mountain state that was unscathed by the housing crisis, Utah had no cities that reported a decline in home values for the period from 2007 to 2019. This is particularly impressive, however, because Utah is home to several ski resort communities, which were hit hard in other states.
Vermont: Rutland County
Tiny Vermont saw 24 cities record declines in housing prices from the start of the recession in 2007. Rutland County had eight of those cities, with a combined average decrease of 7.3 percent. The county had a meager 8.84 percent rebound in values since 2012.
Virginia: Halifax County
Virginia, with its mix of urban and rural areas, was hit hard by the recession, with more than 180 cities experiencing declines in housing values since 2007. Halifax County includes five of those cities, and the county’s average combined decline was 20.82 percent, which was the largest in the state. Since 2012, the county’s home values have rebounded a meager 3.42 percent.
Washington: La Conner
Washington state weathered the recession fairly well, with just three cities recording an absolute decline in housing values since 2007. In La Conner, however, the impact of the crash was felt more harshly; this waterfront community north of Seattle relies heavily on tourism and includes many vacation homes, which were affected more severely. La Conner home values have decreased 12 percent since 2007, but rebounded 37.3 percent since 2012.
West Virginia: Berkeley County
Berkeley County, West Virginia, saw housing values decline a combined 10.84 percent in 2007 through 2019, the largest decrease in the state. The county has also rebounded the most, however, with an increase in values of 31.46 percent since 2012.
Wisconsin: Burnett County
Since 2007, 30 cities in Wisconsin have seen declining home values, with the largest decrease of 13.13 percent in Burnett County. The rebound there has been weak, with prices up just 8.98 percent since 2012. This recovery is dwarfed by the increases in other areas, like the 25.85 percent increase in Walworth County and the 34 percent increase in Kenosha County.
Homeowners in Wyoming barely felt the effects of the recession, at least as far as their home values were concerned. There were no cities in the state that recorded absolute declines in the housing prices, and values in some counties actually increased at least 9.5 percent from 2007 to 2019.
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Methodology: GOBankingRates determined which places are still recovering from the 2000s by analyzing Zillow home value data from January 2019 for 12,885 cities across the U.S., comparing the change over time in median home values between 2000 and 2019, 2001 and 2019, 2002 and 2019, 2007 and 2019, and 2012 and 2019. “Places” in this study refers to either a specific city, metro area or county, depending on the conditions in each state. For instance, in a state such as New York, using counties is preferable to metro areas since the New York metro area is so large that it includes cities outside New York state and across several counties; in other states, the number of cities that experienced an outright decline in home values is so few that research could pinpoint one specific city as the place that is still recovering from the 2000s. Places were scored primarily based on the decline in home values from January 2007 to January 2019 (the former date being right before the housing bubble crashed) and the change in home values from January 2012 to January 2019 (2012 being when home prices finally bottomed out); in addition, each metro area or county was scored on the number of cities it contains that suffered from the worst absolute decline and the weakest recovery. All home value data was sourced from Zillow’s January 2019 index.