It’s not just the housing market that’s improving nationwide — it’s the economy overall.
The number of U.S. metropolitan areas showing “measurable and sustained growth” climbed to 103 this month. The data is measured by the Improving Markets Index, a monthly metric from the National Association of Homebuilders.
The Improving Market Index is meant to identify which U.S. markets are experiencing broad economic growth — not just growth in terms of housing.
The index’s conclusions are based on three data series — each collected separately; each from a different division of the U.S. government; and, each tied to specific local economic conditions.
Those three data series are :
- Employment Statistics (from the Bureau of Labor Statistics)
- Home Price Growth (from Freddie Mac)
- Single-Family Housing Growth (from the Census Bureau)
After collating the data, the National Association of Homebuilders evaluates the reports as a group for each specific major metropolitan area.
A metropolitan area can be cited as “improving” only if the following two conditions are met. One, all three data series show expansion and/or growth as compared to 30 days prior; and, two, none of the data series have “bottomed” within the last six months.
As a result of its methodology, the Improving Market Index specifically passes over short-term growth bursts in a market, isolating for areas with long-term, sustainable growth instead.
Furthermore, “improving” cities may be more apt to outperform other U.S. cities in the months and years ahead, rendering them ideal for relocating buyers from Phoenix in search of long-term employment and income opportunities, as well as real estate investors in want of healthy, stable markets.
33 states are represented in the October Improving Market Index, plus the District of Columbia. 11 new areas were added to the list as compared to September and just 7 dropped off.
The newly-added areas include State College, Pennsylvania and Raleigh, North Carolina. Cities falling off the list for October include Lakeland, Florida.
The complete Improving Markets Index is available for download at the NAHB website.