For many U.S. residents burned by the housing bust, the notion that real estate can not only tread water but actually increase in value might seem a fairy tale. It's not. A Businessweek.com analysis of home sales data from the National Association of Realtors shows that in 18 of the nation's 25 biggest metro areas, home prices grew in value between 1990 and 2010. In one area the change in real dollar price was as much as 85 percent, a return applying only to those who bought homes as a long-term investment, not for easy money flipping real estate. Seven of these metros lost value—generally the result of overbuilding during the real estate boom. Despite recent housing woes, real estate remains one of the best investments the average American can make. And unlike a stock certificate, it provides a place to live.

As you can see in this comparison of representative homes drawn from the following Top 10 Performing Metro Areas, the Seattle-Tacoma comes in at #4.

 

1. Portland-Vancouver-Beaverton, Ore.-Wash.

 

1990 Price: $130,590 ($78,200 in 1990 dollars)
2010 Price: $242,100
Change in Real Dollars: +85.4 percent

 

Population: 2,241,841
Year Home Prices Peaked: 2007

 

Notwithstanding recent declines, Portland area home prices (adjusted for inflation) remain significantly higher than 1990 levels. The median price rose quickly from 2004 through 2007, peaked at about $311,000 (in 2010 dollars) in 2007, and has since dropped by about 22 percent. Moody's Economy.com and Fiserv predict prices will reach their trough in fourth-quarter 2011.

 

2. Baltimore-Towson, Md.

 

1990 Price: $152,300 ($91,200 in 1990 dollars)
2010 Price: $257,100
Change in Real Dollars: +68.8 percent

 

Population: 2,690,886
Year Home Prices Peaked: 2007

 

 

3. Denver-Aurora-Broomfield, Colo.

 

1990 Price: $144,290 ($86,400 in 1990 dollars)
2010 Price: $238,500
Change in Real Dollars: +65.3 percent

 

Population: 2,552,195
Year Home Prices Peaked: 2006

 

 

4. Seattle-Tacoma-Bellevue, Wash.

 

1990 Price: $204,240 ($122,300 in 1990 dollars)
2010 Price: $308,200
Change in Real Dollars: +50.9 percent

 

Population: 3,407,848
Year Home Prices Peaked: 2007

 

Home prices in Seattle have grown significantly over the last 20 years. The metro area's housing market exploded in the late 1990s as the population grew. Nominal price increases slowed in 2002 and 2003, but jumped to 19 percent in 2004, 11 percent in 2005, and 14 percent in 2006, show NAR data. Prices peaked in 2007 at $407,607 (in 2010 dollars). Adjusted for inflation, prices are now about 24.4 percent below that level.

 

5. New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.

 

1990 Price: $285,070 ($170,700 in 1990 dollars)
2010 Price: $404,100
Change in Real Dollars: +41.8 percent

 

Population: 19,069,796
Year Home Prices Peaked: 2007

 

 

6. Miami-Fort Lauderdale-Pompano Beach, Fla.

 

1990 Price: $152,140 ($91,100 in 1990 dollars)
2010 Price: $214,800
Change in Real Dollars: +41.2 percent

 

Population: 5,547,051
Year Home Prices Peaked: 2006 

 

7. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.

 

1990 Price: $246,160 ($147,400 in 1990 dollars)
2010 Price: $338,600
Change in Real Dollars: +37.6 percent

 

Population: 5,476,241
Year Home Prices Peaked: 2006

 

 

8. Boston-Cambridge-Quincy, Mass.-N.H.

 

1990 Price: $267,030 ($159,900 in 1990 dollars)
2010 Price: $366,500
Change in Real Dollars: +37.2 percent

 

Population: 4,588,680
Year Home Prices Peaked: 2005

 

 

9. San Francisco-Oakland-Fremont, Calif.

 

1990 Price: $433,030 ($259,300 in 1990 dollars)
2010 Price: $588,900
Change in Real Dollars: +36 percent

 

Population: 4,317,853
Year Home Prices Peaked: 2007

 

 

10. Houston-Sugar Land-Baytown, Tex.

 

1990 Price: $118,070 ($70,700 in 1990 dollars)
2010 Price: $158,900
Change in Real Dollars: +34.6 percent

 

Population: 5,867,489
Year Home Prices Peaked: 2007