NAR names 10 markets headed for housing stardom
The National Association of Realtors (NAR) has identified 10 markets that it expects to “outperform” over the next three to five years.
This includes metro areas where the NAR expects home price appreciation to outpace the overall field in the next three to five years.
Areas identified in the Top 10 Outperforming Metro Markets Report have been cited for a number of factors, including domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation, among other variables.
“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s Chief Economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
In alphabetical order, the top markets are:
“Potential buyers in these 10 markets will find conditions especially favorable to purchase a home going into the next decade,” said NAR President Vince Malta, a broker at Malta & Co., Inc., in San Francisco, Calif. “The dream of owning a home appears even more attainable for those who move to or are currently living in these markets.”
Strong job growth is one factor driving up prices in these markets, with payroll employment rising about 2.5% annually in the last three years, higher than the national rate of 1.6%. In Ogden, Las Vegas, Dallas, and Raleigh, job growth rose nearly 3%.
According to the NAR, movers are flocking to these markets at higher rates than the average of the 100 largest U.S. metro areas. In Colorado Springs, recent movers accounted for 21% of the total population, followed by Fort Collins at 17% and Las Vegas at 16%.
The markets are also attracting various age groups. About 11% of the people who moved to Tampa were 65 years and older, while 54% of recent movers in Durham were between the ages of 18 and 34.
In most of these metro areas, about half of recent movers who are renting can afford to buy a home in those respective markets when compared to the nation’s 100 largest metro areas. Homeownership rates in these markets are expected to increase due to the relative affordability.
The NAR’s full Top 10 Outperforming Metro Markets Report can be read here.
This includes metro areas where the NAR expects home price appreciation to outpace the overall field in the next three to five years.
Areas identified in the Top 10 Outperforming Metro Markets Report have been cited for a number of factors, including domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation, among other variables.
“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s Chief Economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
In alphabetical order, the top markets are:
- Charleston, S.C.
- Charlotte, N.C.
- Colorado Springs, Col.
- Columbus, Ohio
- Dallas-Fort Worth, Texas
- Fort Collins, Col.
- Las Vegas, Nev.
- Ogden, Utah
- Raleigh-Durham-Chapel Hill, N.C.
- Tampa-St. Petersburg, Fla.
“Potential buyers in these 10 markets will find conditions especially favorable to purchase a home going into the next decade,” said NAR President Vince Malta, a broker at Malta & Co., Inc., in San Francisco, Calif. “The dream of owning a home appears even more attainable for those who move to or are currently living in these markets.”
Strong job growth is one factor driving up prices in these markets, with payroll employment rising about 2.5% annually in the last three years, higher than the national rate of 1.6%. In Ogden, Las Vegas, Dallas, and Raleigh, job growth rose nearly 3%.
According to the NAR, movers are flocking to these markets at higher rates than the average of the 100 largest U.S. metro areas. In Colorado Springs, recent movers accounted for 21% of the total population, followed by Fort Collins at 17% and Las Vegas at 16%.
The markets are also attracting various age groups. About 11% of the people who moved to Tampa were 65 years and older, while 54% of recent movers in Durham were between the ages of 18 and 34.
In most of these metro areas, about half of recent movers who are renting can afford to buy a home in those respective markets when compared to the nation’s 100 largest metro areas. Homeownership rates in these markets are expected to increase due to the relative affordability.
The NAR’s full Top 10 Outperforming Metro Markets Report can be read here.