Southern housing markets are poised to become boomtowns
Southern housing markets have dominated the growth charts for the past few years, showing that southern markets are still hot today. Using growth metrics that measure upcoming construction and development, southern metros make up eight spots on the top 10 list.
The top three metropolitan areas are Lakeland, Austin, Texas, and Raleigh, North Carolina. In fourth place are Dallas, Texas, Port St. Lucie, Florida, San Antonio, North Carolina, Wilmington, and Cape Coral, Florida. at the top of their list. The two non-southern housing markets in the top 10 were Boise City, Idaho at nine and Las Vegas at 10.
To gauge whether a metro area is on the verge of growth, CoreLogic combines several different metrics that evaluate the share of properties sold over the past two years, the share of new construction built over the past three years, and parcels with a change in equity. land use designation within the last two years, plots of land owned by the developer or developer and gardens with new building permits issued within the last two years.
Lakeland measured in 4.6% new construction, 7.2% land use change, 0.8% developer/builder land, 4% recent construction and 1.1% recent permits. Together, Lakeland's figures are several percentage points higher than Austin's.
On the other hand, the slowest growing housing markets are all over the map. The Midwest and California each have five metropolitan statistical areas (MSAs), and the Northeast is home to 10 more, showing little growth.
The slowest-growing housing market on the list is measured before the devastation of the past two weeks. Two factors influenced this ranking: Los Angeles has very few properties with land-use changes, likely due to strict local regulations, and Los Angeles is adjacent to the Riverside metro area, which has a higher composite. scores and absorbs most of the LA increase. Construction growth is also predicted to slow as the area begins the rebuilding process.
Places poised for growth but not at the top of the list include Albuquerque, New Mexico and Madison and Milwaukee Wisconsin, all of which have seen recent land use changes. CoreLogic says new construction and recent construction indicate recent growth, while land use changes, developer or developer ownership and recent new construction in an area are signs that growth is imminent.
