Sunday
July 24, 2016

10 Markets to Grow the Most Next Year

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10 Markets to Grow the Most Next Year

The U.S. housing market is expected to make strides overall in 2015, but 10 metros in particular are "ready for significant acceleration across housing metrics" next year, according to realtor.com®'s latest housing report.

"The markets on this list range from big cities with older housing stock, big and mid-size cities with substantial levels of new construction, and up-and-coming markets appealing to young professionals for their job growth and high affordability," says Jonathan Smoke, realtor.com®'s chief economist.

Los Angeles and Washington, D.C., for example, made the list because of expected increases in household formation and home sales there in 2015, realtor.com® notes. On the other hand, Des Moines, Iowa, made the list because of its high affordability and high levels of home ownership among Millennials, which are expected to continue next year.

Realtor.com®'s top 10 markets for growth in 2015 (as well as what local metric to watch the most next year) are:

  1. Atlanta-Sandy Springs, Ga.: Household formation growth; home sales expected to rise 11%.
  2. Dallas-Fort Worth-Arlington, Texas: Household formation (ranks first in forecasted household growth over the next 5 years); home sales expected to rise 7%.
  3. Denver-Aurora-Broomfield, Colo.: Home-sale growth projected to be 14%; tight inventories of for-sale homes.
  4. Des Moines-West Des Moines, Iowa: Growth in Millennial share of households.
  5. Houston-The Woodlands, Texas: Household formation growth; employment to grow by 4%; home sales to increase by 5%.
  6. Los Angeles-Long Beach, Calif.: Household formation growth; home sales to grow by 6%.
  7. Minneapolis-St. Paul-Bloomington, Minn.: Millennial home owner growth; increase in new-home construction.
  8. Phoenix-Mesa-Glendale, Ariz.: Income growth; increase in new-home construction by 22%; home sales expected to grow by 11%.
  9. San Jose-Sunnyvale-Santa Clara, Calif.: Tight inventories of homes for sale; income growth; home prices and home sales both expected to grow by 3%.
  10. Washington, D.C.: Household formation growth; tight inventories of homes for sale; home sales expected to rise 10%.

Source: realtor.com®