Housing is heating up in these markets
BY LESLEY DEUTCH AND KEN PERLMAN
Despite the tremendous economic distress caused by COVID-19, our clients continue to find strong renter and homebuyer demand for newly built homes across the country. In this article, we highlight some of the markets and real estate segments where we are consulting most frequently.
Tampa homebuyers continue to take advantage of low mortgage rates, and COVID-19 issues have also caused renters to seek lower density rental environments. New home sales agents report they could sell more homes if they had more hours in the day.
Nashville remains on the radar of both infill developers and apartment owners, even after the decade-long boom it experienced. Despite a strong concentration of healthcare and tourism, Nashville’s economy remains a magnet for young professionals and empty nesters/ retirees and we have strong growth prospects in the longer term for the region.
Atlanta has become a prime target for single-family rental communities with its strong population growth and increased in-migration. Atlanta’s single-family rents grew 6% over the last year—the second fastest in the country.
Phoenix builders pioneered the single-family build-for-rent space, and development and leasing activity continues to soar. Nearly 30 actively leasing BFR communities there average a 96% occupancy rate. Most of these communities are considered horizon- tal apartments; we are seeing more traditional townhomes and detached homes planned and proposed.
Salt Lake City housing demand is keeping its momentum. We have been writing about the “Great American Move” for weeks, and perhaps no market has benefitted as much as Salt Lake City, which was previously never considered a high-growth market. The recent migration of tech workers from higher-priced markets like Southern California and the Pacific Northwest has been fueling Salt Lake’s growth for years. This migration has created more of a tech-based economy, which has spurred work-from-home demand across the region.
Boise has also benefited from Northern California and Pacific Northwest migration and is even capturing some buyers priced out of Salt Lake City.
The Inland Empire in Southern California and outlying areas in Northern California from Sacramento to Gilroy have benefited tremendously from renters driving further out to become homeowners.
Austin, Dallas and Houston all continue to boom as well, with Austin benefitting from tech migration and Dallas and Houston entry-level buyers benefiting from low mortgage rates.
There are a plethora of questions that remain as we continue to navigate through the pandemic. How long can this continue? What other markets are hot? How can new home sales and new home rentals both be strong during a recession? Learn more at realestateconsulting.com.