The shift from the nation’s top markets to secondary markets is accelerating.
Coldwell Banker’s “State of Luxury 2020” report picked out several secondary markets to watch alongside some larger markets that still have room to grow, according to Inman. The top markets to watch are Boise, Idaho; Charlotte, North Carolina; Colorado Springs, Colorado; Cincinnati, Ohio; and Fort Worth, Texas.
The list was based on an analysis of job and population growth against sales-price-to-list-price ratios, days on market, median list price, and inventory.
Secondary cities can be attractive to homebuyers for a number of reasons. They’re attractive for buyers who want to live in an urban environment but who can work remotely — they don’t necessarily need to be in the nation’s larger job centers to work high-paying jobs. Secondary markets can get buyers more real estate bang for their buck as well.
Coldwell Banker isn’t the first to see the trend toward secondary markets. Developers and investors have turned their attention toward smaller markets in search of returns as cap rates compress in the nation’s premier markets. Secondary and suburban markets have outperformed larger markets by various metrics over the last few years, like household income growth and employment growth.
Still, several larger markets made Coldwell Banker’s list. Malibu and San Diego, California; Austin, Texas; and Arlington, Virginia were picked as markets to watch. Malibu topped markets in terms of price-per-square-foot with a median of $4,269-per-square-foot. [Inman] – Dennis Lynch