Recent research conducted by the online real estate portal, Trulia, (owned and operated by Zillow) identified the 100 largest Metro areas in the U.S. to determine which were primed for growth in the year ahead, and which areas where growth probably won’t happen.
According to Trulia, the hot markets that drove U.S. housing in recent years, which were the coastal cities, “will give way in 2019 to a new group of affordable, young, opportunity-filled, desirable – and largely inland – cities primed to drive growth in the years to come.”
Of the 100 largest U.S. metropolitan areas, Trulia identified 10 that they think are poised for takeoff, based on the following five key metrics:
Job growth over the past year, as a measure of a robust economy.
Vacancy rates, as an indicator that housing supply does not exceed demand.
Good starter-home affordability, as a signal that first-time home buyers stand a chance at buying a home.
More inbound than outbound home searches on Trulia, as a gauge that more people are interested in that market than those looking to leave.
A large share of the adult population under the age of 35, representing more potential first-time buyers.
These are the markets to watch. So long Silicon Valley, and hello Heartland:
Colorado Springs, CO
Grand Rapids, MI
El Paso, TX
Oklahoma City, OK
This is not surprising to us, either that coastal cities may have significant downward price adjustments while the solid performing interior markets (e.g., Phoenix, Austin) may not have the same high appreciation rates, but will continue strong and steady.
Oh, that sounds healthy to me!
To read the entire article, including charts, see below: