Realtor.com® on Monday published a list of America's Top 'Boom Towns,' Led by Gilbert, Ariz. (85297); Los Angeles (90012), and Dallas (75201). The criteria? New home construction, job creation and an increasing number of households – the driver of housing market growth.
"The strength of the residential real estate market is closely correlated to growth in jobs and households," said Jonathan Smoke, chief economist for realtor.com®. "The good news for these markets is that these growth factors have already started to translate into new construction. At the same time, it may be a year or so before some markets on our list start to see an increase in inventory. If anything, this is a road map for where builders should be thinking about where to break ground next."
America's Top Boom Towns are demonstrating some of the strongest growth in jobs, household formation, and housing starts across the country. Every market on the list has experienced between one and five times the average job growth of the top 100 counties in the country. Household growth in each of these areas is between one and seven times the average growth of the top 100 areas. New home starts are between one and six times the average growth in the top 100 counties. Most importantly, each individual ZIP code is projected to see a growth in households of between nine and 19 percent over the next five years.