The overall housing market continues its recovery – in a positive direction. But why are some metro markets progressing more rapidly than others?
While most metro areas are experiencing some level of growth right now – some regions have economic factors that encourage an even stronger market:
- First – these markets were less reactive to the recession, and never experienced the substantial inflation of other markets. Those metro areas offer a truer sense of what the market can bear during a recession and what their status looks like in the aftermath.
- Second – these metro areas have more flexible land use regulation – so builders can easily adjust supply according to demand.
- Third – they headquarter many large corporations and tech start-ups – promoting more jobs and higher wages. For example, the Atlanta, Charlotte and Dallas markets are experiencing strong growth as leading employment centers.
- Finally – the requirements for lending and borrowing money in these markets have been more stringent when other areas had freer standards. Banks have been more selective about lending since the economic downturn, but these metro areas were more selective about their loans.
Not all markets are created equal – some have factors that will continue to encourage steadier growth. But while certain markets have seen higher highs, and lower lows, they, too, are experiencing growth. In the end, growth is growth, and it is an exciting time to be involved in the housing industry!