Source: GlobeNewswire (MIL-OSI)
NEW YORK and SANTA CLARA, Calif., Oct. 19, 2021 (GLOBE NEWSWIRE) — The Wall Street Journal and Realtor.com® today released the WSJ/Realtor.com® Fall 2021 Emerging Housing Markets Index, which revealed Elkhart-Goshen, Ind. is now the No.1 emerging market in America. The index analyzes key housing market data, as well as economic vitality and lifestyle metrics, to surface emerging housing markets that offer a high quality of life and are expected to see future home price appreciation.
The Top-20 Emerging Markets for Fall 2021 are:
|11. Colorado Springs, Colo.|
|12. Fort Wayne, Ind.|
|13. Manchester-Nashua, N.H.|
|14. Kennewick-Richland, Wash.|
|15. Decatur, Ala.|
|16. Billings, Mont.|
|17. North Port-Sarasota-Bradenton, Fla.|
|18. Waco, Texas|
|19. Durham-Chapel Hill, N.C.|
|20. Boulder, Colo.|
Taking a Deeper Dive Into the Top Markets:
Returning Markets: Our list saw 15 repeat markets among the top 20 including our new number one market, Elkhart-Goshen, Ind. Previous number one markets, Billings, Mont., which topped the summer emerging housing markets index and Coeur D’Alene, which topped the spring emerging housing markets index, both remain in the top twenty. Other repeat markets include: Rapid City, S.D.; Topeka, Kan.; Raleigh, N.C.; Jefferson City, Mo.; Burlington, N.C.; Eureka-Arcata-Fortuna, Calif.; Johnson City, Tenn.; Huntsville, Ala.; Colorado Springs, Colo.; Fort Wayne, Ind.; Manchester-Nashua, N.H. and Waco, Texas.
Strong job markets attract newcomers and push up home prices
Each emerging market is home to strong job markets, which have driven up home prices. On average, the unemployment rate in the top-20 emerging markets was 3.9% compared to 5.1% for the 300-metro average. Steady income is a significant driver of home prices and these areas are no exception. The average median asking price in these areas was more than double the average rate of growth in all 300 markets — at 13.4% vs. 6.6%, respectively. Notably, last quarter’s top markets were generally more affordable, but in the fall quarter’s data, they’re more expensive, on average, with a median price of $392,800 among top markets compared with $359,100 among all 300 markets.
Lower cost of living helps offset higher home prices
Even though housing is pricier than average in these markets, other costs of living are lower (the regional price parities average 93.4 vs. 94.6) and average wages are slightly higher ($1,056 versus $1,049 weekly). The estimated property tax rate is also slightly lower, averaging 0.89% compared with 1.12%. When property tax savings are applied to the typical asking price of a home, this lower rate means savings of more than $550 per year, even though the median list price is higher.
Workers have shorter commute times
Commute data suggests that getting to and from work is a bit faster in the emerging metros than all 300 metros. With the typical commute taking 22.6 minutes compared to 24.4 minutes, workers in these areas save a total of 15 hours over the course of a year.
Two Vacation Hot Spots Made the Top-20
There are vacation destinations among the top emerging markets, notably Coeur D’Alene, ID and North Port-Sarasota-Bradenton, FL where 9.1% and 16.4% of homes are vacation properties, respectively. However, just 2.6% of the housing stock in the top-20 markets on average are vacation homes, compared with 3.6% among all 300 metro areas reviewed.
Read the full report at http://wsj.com/housingindex
The ranking evaluates the 300 most populous core-based statistical areas, as measured by the U.S. Census Bureau, and defined by March 2020 delineation standards for eight indicators across two broad categories: real estate market (50%) and economic health & quality of life (50%). Each market is ranked on a scale of 0 to 100 according to the category indicators, and the overall index is based on the weighted sum of these rankings. The real estate market category indicators are: real estate demand (16.6%), based on average unique viewers per property; real estate supply (16.6%), based on median days on market for real estate listings, median listing price trend (16.6%). The economic and quality of life category indicators are: unemployment (6.25%); wages (6.251%); regional price parities (6.25%); the share of foreign born (6.25%); small businesses (6.25%); amenities (6.25%), measured as per capita “everyday splurge” stores in an area; commute (6.25%); and estimated effective real estate taxes (6.25%).
About The Wall Street Journal.
The Wall Street Journal is a global news organization that provides leading news, information, commentary and analysis. Published by Dow Jones, The Wall Street Journal engages readers across print, digital, mobile, social, and video. Building on its heritage as the preeminent source of global business and financial news, the Journal includes coverage of U.S. & world news, politics, arts, culture, lifestyle, sports, and health. It holds 38 Pulitzer Prizes for outstanding journalism.
Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com®.
For The Wall Street Journal
Lexie Puckett Holbert