The same is true for upstate New York. People who purchased homes 15 or 20 years ago in the county where I live can expect around 75%+ "profit", easily. They can expect much more if there is high acres of land involved!!! But if these people grew up in this county like I did, they can't afford to purchase another home here.
We live about 130 miles north of New York City. Since 9/11, real estate has sky-rocketed!!! Not only are there "week-enders" from NYC, but there are lots of "second home owners" from Long Island buying land and homes up here at an accelerated rate.
We sold our home for over $50,000 more than what we paid for it back in 1992. Only because Amy is working as an RN (we are "D.I.N.K.'ers") are we able to afford our brand-new "spec home" on 5.5 acres for well over $350,000. This same home on 5.5 acres of land would have cost roughly $125,000 around 7 years ago. 15+ years ago, it would have cost under $100,000.
The sad part is that income has not
kept up with the inflated home and land prices. Many people I know who graduated with me from high school 27+ years ago ("natives" of this county) can't afford to purchase property in our school district if they don't already own land here. This is most true for long-time farm families.
And do you want to buy a condo in Manhattan?? Well, expect to pay around $300,000+ for a studio. $500,000 to $750,000+ one room condo's are typical, there (if you can find one for sale!). This is why people from NYC see a home up here on 5+ acres of land and think nothing to paying $350,000. And this is now the LOWER end of housing here!!!