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Suburbs Far Outpace Urban Areas in US Home Value Growth

New homes at the Cielo at Sand Creek by Century Communities housing development in Antioch, California.

New homes at the Cielo at Sand Creek by Century Communities housing development in Antioch, California.

Photographer: David Paul Morris/Bloomberg

The urban real estate market has been running hot in the US since last summer. But the suburbs have been even hotter, according to an analysis from Zillow Group Inc.

From January 2013 through June 2021, urban homes have generally been gaining dollar value more quickly. But a switch happened after July 2021 as the economy recovered from the pandemic: Home values in suburban zip codes rose faster on annual basis, fueled by the widespread shift to remote work that spurred millions Americans to look for greener locales and bigger homes.