Check-Up Time: The 2009 Local Market Health Index

52. Orange County, Calif.

2008 Total Building Permits: 3455

Orange County was holding up pretty well in the housing downturn, until last year, when permit levels fell by 53 percent. Median home prices, which averaged a whopping $533,200 last year, are falling as well; 23.8 percent in the last year. A center for the banking industry, Orange County has lost a ton of jobs, roughly 35,000, in the last two years due to the financial crisis. The 29,300 jobs it lost last year, a decline of 1.9 percent, put it on the top 10 list of job losers. The county last year stopped collecting impact fees until projects are completed.

Busiest builders: Lennar, Windstar Communities, William Lyon Homes, John Laing Homes, Brookfield Homes. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Orange County, Calif. Local Market page.

53. Colorado Springs, Colo.

2008 Total Building Permits: 2,064

With a big military presence—the Air Force Academy, Peterson Air Force Base, and Fort Carson are all located here—Colorado Springs continues to add jobs, even last year, when it gained 900, an increase of 0.3 percent. As a result, existing home prices held pretty steady through most of 2008, then dropped 11 percent on a year-over-year basis in the fourth quarter, still better than many markets. Even so, builders pulled a paltry 2,064 permits here last year, down 36 percent in one year, and the lowest level since 1991. Expansion plans at Fort Carson could help stabilize the market eventually.

Busiest builders: Journey Homes, Pulte Homes, Classic Homes, Richmond American Homes, Today’s Homes. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Colorado Springs, Colo. Local Market page.

54. Louisville, Ky.

2008 Total Building Permits: 3671

A metro area of 1.25 million, Louisville has been adding population at a 1 percent annual rate for the last five years. It had been steadily adding jobs, too, until last year, when job growth was flat. As a result, permit levels here haven’t declined as much as they have other places—they are running 58 percent below 2004 levels. The area benefits from very affordable housing; median prices declined only 3.8 percent last year to $132,200.

Busiest builders: Ball Homes, McBride & Son Enterprises, Dogwood Homes, Dominion Homes, Five Star Development. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Louisville, Ky. Local Market page.

55. Memphis, Tenn.

2008 Total Building Permits: 3121

Permit levels in Memphis, which held pretty steady from 2005 through 2007, fell precipitously last year—61 percent—as the area lost 4,600 jobs, after gaining jobs each of the previous three years. Even so, this transportation hub enjoys quite affordable housing; the median price of an existing home stood at $119,300 last year, a 13 percent decline from the previous year.

Busiest builders: Kalian Companies, Faxon Gillis Homes, Chamberlain & McCreery, Lenox Homes, Perennial Building Group. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Memphis, Tenn. Local Market page. 

56. Albuquerque, NM

2008 Total Building Permits: 2555

Permit activity fell sharply in Albuquerque last year, 43 percent in one year, as job growth halted. Existing home prices held their own, falling only 3 percent in one year to $192,600. The population has been growing at nearly a 2 percent annual rate over the last five years, a trend that continued through last year. Home to Kirtland Air Force Base and the University of New Mexico, the market is girding for the arrival of several new large high-tech employers, including Hewlett Packard and defense contractor L-3 Communications Applied Technology Division.

Busiest builders: D.R. Horton, Pulte Homes, KB Home, Beazer Homes, Artistic Homes. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Albuquerque, NM Local Market page.

57. Jacksonville, Fla.

2008 Total Building Permits: 6949

Jacksonville lost 5,300 jobs last year, 0.8 percent of its employment base, many of them in the construction industry, as building permit levels declined 36 percent. Median existing home prices fell only 8.1 percent in 2008 to $180,600, a decline that was moderated in the fourth quarter. The housing market has been buoyed by steady population gains, which have averaged 2 percent annually over the last five years. The two biggest employers here are military bases.

Busiest builders: KB Home, D.R. Horton, Pulte Homes, Lennar Homes, Richmond American Homes. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Jacksonville, Fla. Local Market page.

58. Tucson, Ariz.

2008 Total Building Permits: 3370

Permit activity fell 40 percent last year as the Tucson area shed 9,200 jobs, 2.4 percent of its workforce. Median home prices dropped 16.5 percent to $204,300, slightly above the national average. The area has benefited from annual population growth in the 2-percent range over the last five years. But it started losing jobs last year. It had 15,700 fewer in the fourth quarter of last year compared to the same quarter a year earlier, a 4.1 percent rate of decline.

Busiest builders: Meritage Homes, Richmond Homes, D.R. Horton, Lennar, Pulte Homes. Courtesy: Hanley Wood Market Intelligence.

59. Los Angeles, Calif.

2008 Total Building Permits: 11,593

Only 11,593 permits were pulled in Los Angeles last year, a market area of 4,033 square miles, a 55 percent decline over 2004 levels. Existing home prices fell 32.3 percent last year to a median of $402,100, leaving L.A. high on the list of the least affordable places to live in the country. The population here hasn’t increased in the last five years due to the high cost of living. Los Angeles lost 17,800 jobs last year, after some pretty heady growth the previous three years. The rate of job loss doubled in the fourth quarter.

Busiest builders: Lennar, Intracorp Southern California, Montage Development, KOR Realty Group, Forest City West. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Los Angeles, Calif. Local Market page.

60. Cincinnati, Ohio

2008 Total Building Permits: 4145

The good news is that employment in this metro area of 2.15 million held steady, and that and Cincinnati continues to outperform other Ohio cities in population growth. The bad news is that permit levels slid precipitously last year. They are now running at a third of 2005 levels. Median home prices finished the year at $131,800, only a 6.4 percent drop over the previous year, but they accelerated rapidly in the fourth quarter. The metro area is suffering from job losses in housing and auto manufacturing.

Busiest builders: The Fischer Group, NVR/Ryan, The Drees Company, Beazer Homes, M/I Homes. Courtesy: Hanley Wood Market Intelligence.

Get local housing data and more on Builder's Cincinnati, Ohio Local Market page.