Boom towns like Gilbert, Ariz., Los Angeles, and Dallas are outperforming the rest of the nation when it comes to new home construction, job creation, and household growth, according to new analysis by realtor.com®.
“The strength of the residential real estate market is closely correlated to growth in jobs and households,” says 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.”
Some of the hottest markets are seeing household growth that’s one to seven times above the average national growth, and new-home starts that are one to six times the average growth of the top 100 areas. What’s more, realtor.com® researchers project that the 30 hottest ZIP codes are projected to see the most growth in households – between 9 and 19 percent – over the next five years.
In Gilbert, Ariz. (ZIP code: 85297), which topped realtor.com®’s list, the five-year household projected growth is expected to be 15.9 percent; housing starts are 5.7 times the national average; and job growth is 5.8 times the national average.
The following are the 30 ZIP codes that topped realtor.com®’s “boom town” list: