California’s booming tech sector has helped the state’s real-estate markets to recover
By Jacob Passy | Marketwatch
When the Great Recession hit, the unemployment rate in Modesto, Calif., reached a staggering 17.5%. The city, which was known for its agricultural industry and for being the home of Gallo Winery, the largest exporter of California wines, had the third highest foreclosure rate in the country in 2010.
Today the San Joaquin Valley city is emblematic of the post-housing-crisis recovery. Modesto had the largest rebound in home prices in the country, according to a new report from real-estate website Owners.com. In Modesto, the price per square foot has increased nearly 115% from its crisis-era trough to its current level of $182 per square foot.
California as a whole has rallied the most from the housing crisis. Among the 20 housing markets that had the biggest rebounds, half are located in California. Other states with cities that experienced major rebounds include those that were hit hardest during the Great Recession: Nevada, Arizona and Florida.
