EDGEhomes Blog

Jul 26
2017

FIVE HOTTEST U.S. HOUSING MARKETS WHERE SUPPLY MEETS DEMAND




With a good supply of land and a growing demand for new housing, these five up-and-coming cities will be some of the most lucrative areas for home builders in the next few years.

Salt Lake City Utah mountains and skyline

Market Stats:

No. 12: Best City to Invest in Housing in 2015 – Forbes
No. 5: Healthiest Economic Market in the U.S. – Metrostudy
55.5%: Increase in New-Home Sales from 2011 to 2013 – Metrostudy
No. 1: Metro for upward mobility – Harvard

 

Salt Lake City

In most areas, millennials can likely find either great job opportunities or affordable housing—not both.

But Salt Lake City is an anomaly in that equation. Young job seekers have flocked to this city, where odds of upward mobility were ranked No. 1 among larger metros like Boston, New York, and San Francisco, according to a study conducted by Harvard and UC-Berkeley economists.

And with 50% of homes being affordable for the metropolitan’s millennial average income of $50,000, according to Trulia, these transplants aren’t leaving. In fact, Salt Lake City’s millennial population is 16.8% of its total population, putting this city in the top 12 metropolitan statistical areas for largest portions of millennial populations.

The median price for a new single-family home in Salt Lake City increased 9% to $330,900 between 2013 and 2014. Dave Robison, president of the Salt Lake City Board of Realtors, suspects prices will continue increasing over the next couple of  years.

Still, expected home price increases will likely be sustained by Salt Lake City’s median household income of $61,941 and the growing population. “Our population really keeps growing more than our housing supply provides for,” says Robison.

And there’s definitely a sustained interest in new homes: Salt Lake City experienced a 55.5% jump in new-home sales from 1,648 in 2011 to 2,563 in 2013.

The largest concern for builders in this area is an impending labor shortage.  An Associated General Contractors of America survey released in January 2015 revealed that although roughly 70% of general contractors in Utah expect to expand payrolls this year.

However, Salt Lake City is still ripe for new builders since the area hasn’t been saturated by large production builders: only four of the top 10 builders in the city are listed on the BUILDER Top 100. — Kayla Devon

* DISCLAIMER: The figures shown represent monthly principal & interest payments only. Monthly taxes, home owners insurance, and Mortgage Insurance are not included in this amount. These figures are based on a Conventional mortgage loan with a 5% down payment and are based on a 700 credit score. These are estimates only and not guaranteed payment amounts.

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