City house prices are rising at their fastest rate in almost 18 years.
Of the 150 cities tracked by our index worldwide, 140 saw prices increase in 2021, up from 122 in 2020. Overall, the index grew by 11% in 2021.
Cities in the Americas registered the strongest jump averaging 15% annual growth compared to 11% in the EMEA region and 9% across Asia-Pacific. US households not only accrued significant savings during successive lockdowns but the equity in their homes expanded significantly too. In some cases, this wealth has been used to upgrade existing homes or purchase a second property.
We talked last week about the mounting evidence indicating that the housing boom is on borrowed time and city markets are by no means insulated by the range of factors likely to drag on growth over the course of the year. However cities are benefitting from the post-pandemic resurgence of urban life - see the expansion of the services sector below. That's likely to act as a buttress for growth as suburban markets feel the more immediate squeeze of tightening monetary policy.