Boom and Bust in the Same Metro Areas

Getty Images

By Prashant Gopal

Boom and Bust in the Same Metro Areas

The credit crisis is now officially one year old and, boy, is it an ugly baby. Yes, we all know that real estate values are pale shadows of their former selves. We also know that in some areas, home prices are actually quite robust. But what may come as a surprise to many readers is that these weak and strong markets can often co-exist within the same Metro Area. Take Boston. In the plush suburb of Wellesley Hills, the asking price of homes in the 02481 ZIP code increased 21% in the past year. But the 01902 ZIP in nearby Lynn, a struggling industrial community, experienced a 27% annual drop in its homes' asking price. Where else is this dichotomy the greatest? Working with Altos Research, Businessweek.com looked at the 20 largest metropolitan statistical areas in the U.S. to find which ZIPs had the most gains and worst losses over the past year, since the real estate market officially began to nosedive. To see which these ZIP codes are, and whether you might live in one, read on.