Over the quarter-century from the third quarter of 1975 to the third quarter of 2000, the average value of a house in Florida rose, in constant 2005 dollars, from $110,000 to $169,000, a 54% gain. Then in the next six years, from 2000Q3 to 2006Q3, according to data maintained by the Lincoln Land Institute, the average doubled to $341,000. Five years later, most of that gain had evaporated (see graph below), with the average value falling to $176,000. Finally that plunge has stopped.
Charles W. Calomiris, Stanley D. Longhofer, and William Miles, “The Housing Wealth Effect: The Crucial Roles of Demographics, Wealth Distribution and Wealth Shares,” National Bureau of Economic Research, Working Paper 17740, January 2012.
The Lincoln Land Institute requests that users of its price data cite Davis, Morris A. and Jonathan Heathcote, 2007, “The Price and Quantity of Residential Land in the United States,” Journal of Monetary Economics, vol. 54(8), pp. 2595-2620, data located at Land and Property Values in the U.S., Lincoln Institute of Land Policy http://www.lincolninst.edu/resources/