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:
- Atlanta-Sandy Springs, Ga.: Household formation growth; home sales expected to rise 11%.
- Dallas-Fort Worth-Arlington, Texas: Household formation (ranks first in forecasted household growth over the next 5 years); home sales expected to rise 7%.
- Denver-Aurora-Broomfield, Colo.: Home-sale growth projected to be 14%; tight inventories of for-sale homes.
- Des Moines-West Des Moines, Iowa: Growth in Millennial share of households.
- Houston-The Woodlands, Texas: Household formation growth; employment to grow by 4%; home sales to increase by 5%.
- Los Angeles-Long Beach, Calif.: Household formation growth; home sales to grow by 6%.
- Minneapolis-St. Paul-Bloomington, Minn.: Millennial home owner growth; increase in new-home construction.
- Phoenix-Mesa-Glendale, Ariz.: Income growth; increase in new-home construction by 22%; home sales expected to grow by 11%.
- 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%.
- Washington, D.C.: Household formation growth; tight inventories of homes for sale; home sales expected to rise 10%.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”