Top 10 Housing Appreciation Markets in 2011

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The new year is upon us and many are looking to expand their real estate investments to new markets. But where does one go? It’s probably not a bad strategy to invest in areas that are expected to appreciate.

Clear Capital Home Data Index has recently released their forecasts for 2011 market valuations. I’ve decided to focus on the 10 major cities that are expected to appreciate the most in 2011. I’ve provided below an analysis of the markets similar to a previous article I wrote about the fastest growing cities. Three of the cities below appeared in the previous article, so I’ve added a few new data points so that I’m not just reposting old material.

1. Washington, D.C. – 6.5% Forecasted Price Increase in 2011

  • Median Listing Price: $474,900*
  • Number of Listings: 23,255*
  • Population (Washington MSA): 5,400,000
  • Major Industry: Federal Government, Technology, Construction, International Business, Construction
  • Major Employers: Federal Government, Washington Hospital Center, Children’s National Hospital
  • Major Universities: Georgetown University, George Washington University, Howard University, American University
  • Fortune 500 Headquarters: Fannie Mae, Danaher, Pepco Holdings
  • Professional Sports Franchises: Washington Wizards – NFL, Washington Nationals – MLB, Washington Wizards – NBA, Washington Capitals – NHL

2. Houston, TX – 3.6% Forecasted Price Increase in 2011

  • Median Listing Price: $165,000*
  • Number of Listings: 20,370*
  • Population (Houston-Sugar Land-Baytown MSA):  5,867,489
  • Major Industry: Energy, Biomedical Research, Aeronautics, Petrochemical
  • Major Employers: Memorial Hermann Healthcare System, Continental Airlines, Inc., The University of Texas M.D. Anderson Cancer Center
  • Major Universities: Rice University, University of Houston
  • Fortune 500 Headquarters: ConocoPhillips, Marathon Oil, Sysco, Enterprise GP Holdings, Plains All American Pipeline, Haliburton, National Oilwell Varco, Continental Airlines, KBR, Waste Management, Baker Hughes, Apache Corporation, CenterPoint Energy, Smith International, Kinder Morgan, Calpine, Enbridge Energy Partners, Cameron International, EOG Resources, Spectra Energy, El Paso Energy, Group 1 Automotive, FMC Technologies, Frontier Oil
  • Professional Sports Franchises: Houston Astros – MLB, Houston Texans – NFL, Houston Rockets – NBA

3. Honolulu, HI – 3.4% Forecasted Price Increase in 2011

  • Median Listing Price: $435,000*
  • Number of Listings: 3,278*
  • Population (Honolulu MSA): 909,863
  • Major Industry: Hospitality, Trading, Military Defense, Research & Development, Manufacturing
  • Major Employers: University of Hawaii, Kapiolani Medical Center, Kyo-Ya Company
  • University of Hawaii

4. Memphis, TN – 3.2% Forecasted Price Increase in 2011

  • Median Listing Price: $145,000*
  • Number of Listings: 9,531*
  • Population (Memphis MSA): 1,280,533
  • Major Industry: Distribution, Manufacturing, Services, Entertainment/Film
  • Major Employers: FedEx Corporation, Memphis City Schools, Methodist Healthcare
  • Major Universities: University of Memphis
  • Fortune 500 Headquarters: FedEx Corporation, AutoZone Incorporated, International Paper
  • Professional Sports Franchises: Memphis Grizzlies – NBA

5. Columbus, OH – 2.1% Forecasted Price Increase in 2011

  • Median Listing Price: $144,900*
  • Number of Listings: 12,753*
  • Population (Columbus MSA): 1,773,120
  • Major Industry: Education, Insurance, Banking, Fashion, Defense, Aviation
  • Major Employers: The Ohio State University, JP Morgan Chase, Nationwide Insurance
  • Major Universities: The Ohio State University
  • Fortune 500 Headquarters: Nationwide Insurance, American Electric Power, Limited Brands, Big Lots
  • Professional Sports Franchises: Columbus Blue Jackets – NHL

6. Dallas, TX – 1.4% Forecasted Price Increase in 2011

  • Median Listing Price: $170,000*
  • Number of Listings: 28,226*
  • Population (Dallas-Fort Worth-Arlington MSA): 6,477,315
  • Major Industry: Defense, Financial Services, Information Technology and Data, Life Sciences, Semiconductors, Telecommunications, Transportation, Processing
  • Major Employers: Wal-Mart Stores Inc., American Airlines, Baylor Health Care System
  • Major Universities: Southern Methodist University, The University of Texas at Dallas
  • Fortune 500 Headquarters: Exxon-Mobil, AT&T, Fluor, AMR, Kimberly-Clark, J.C. Penney, Burlington Northern Santa Fe, Dean Foods, Texas Instruments, Southwest Airlines, Energy Future Holdings, Tenet Healthcare, Gamestop, XTO Energy, Commercial Metals, Affiliated Computer Services, Dr Pepper Snapple Group, Energy Transfer Equity, Celanese, Atmos Energy, Holly, Flowserve, Radioshack, Blockbuster
  • Professional Sports Franchises: Dallas Cowboys – NFL, Dallas Mavericks – NBA, Dallas Stars – NHL, Texas Rangers – MLB

7. New York, NY – 1.3% Forecasted Price Increase in 2011

  • Median Listing Price: $359,900*
  • Number of Listings: 33,675*
  • Population (New York MSA): 19,006,798
  • Major Industry: Finance, Insurance, Real Estate, Media, Arts
  • Major Employers: American International Group, Atlantic Express Transportation Corp., Bank of America, Bloomberg
  • Major Universities: New York University, Columbia University, Fordham University, Cooper Union, Bernard College, Pace University, Yeshiva University
  • Fortune 500 Headquarters: JP Morgan Chase, Citigroup, Verizon Communications, American International Group, Goldman Sachs Group, Pfizer, Metlife, New York Life Insurance, Morgan Stanley, News Corp., Hess, Time Warner, American Express, TIAA-CREF, Philip Morris International, Travelers Co., Bristol-Myers Squibb, Alcoa, Time Warner Cable, L-3 Communications, Colgate-Palmolive, Loews, Viacom, Consolidated Edison, CBS, Omnicom Group, ITT, Marsh & McLennan, Avon Products, Guardian Life Ins. Co. of America, Assurant, Bank of New York Mellon Corp., Icahn Enterprises, Estee Lauder, Interpublic Group, Virgin Media, McGraw Hill, Dover, Barnes & Noble, Polo Ralph Lauren, Foot Locker, BlackRock, NYSE Euronext
  • Professional Sports Franchises: New York Giants & New York Jets – NFL, New York Yankees and New York Mets – MLB, New York Knicks & New Jersey Nets – NBA, New York Rangers & New York Islanders & New Jersey Devils – NHL

8. Birmingham, AL – 0.9% Forecasted Price Increase in 2011

  • Median Listing Price: $149,900**
  • Number of Listings: 3,842**
  • Population (Birmingham MSA): 1,212,848
  • Major Industry: Steel, Medical, Trade, Finance, Research, Government
  • Major Employers: University of Alabama at Birmingham, Alabama Power Co., AT&T
  • Major Universities: University of Alabama at Birmingham
  • Fortune 500 Headquarters: Regions Financial

9. Pittsburgh, PA – 0.8% Forecasted Price Increase in 2o11

  • Median Listing Price: $133,000**
  • Number of Listings: 4,302**
  • Population (Pittsburgh MSA): 2,462,571
  • Major Industry: Steel, Health Care, Hi-Tech, Nuclear Engineering, Tourism, Biomedical Technology, Finance, Services
  • Major Employers: UPMC, University of Pittsburgh, Giant Eagle Inc.
  • Major Universities: Carnegie Mellon University, Duqusne University, University of Pittsburgh
  • Fortune 500 Headquarters: PNC Financial Services, PPG Industries, U.S. Steel, H.J. Heinz Company, Mylan Laboratories, WESCO International, CONSOL Energy, Dick’s Sporting Goods
  • Professional Sports Franchises: Pittsburgh Steelers – NFL, Pittsburgh Pirates – MLB, Pittsburgh Penguins – NHL

10. New Orleans, LA – 0.5% Forecasted Price Increase in 2011

  • Median Listing Price: $167,500*
  • Number of Listings: 8,712*
  • Population (New Orleans-Metairie-Kenner MSA): 1,235,650
  • Major Industry: Oil/Gas, Tourism, Port and Ship/Boat Building, Aerospace Manufacturing
  • Major Employers: Ochsner Health System, Tulane University, Acme Truck Line
  • Major Universities: Tulane University, Loyola University New Orleans
  • Fortune 500 Headquarters: Entergy
  • Professional Sports Franchises: New Orleans Saints – NFL, New Orleans Hornets – NBA


* Source: http://www.housingtracker.net/
** Source: http://realestate.yahoo.com/

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7 Comments

  1. Hey Douglas — Solid info, and something for those living in past to ponder. It’s more than a bit interesting to me the cities/regions NOT on this list. Yet so many so-called experts still sing their praises. California and Arizona come to mind, but they’re not the only two. Would love to hear your thoughts.

    • Jeff,

      Certainly it’s surprising to see the usual suspects from California and Arizona missing on the list. However, those that rose the most during the boom, had the furthest to fall. It’s worth noting that 3 Arizona and California cities made the list for Top 10 cities where prices are expected to drop in 2011.

      Doug

      • Jeff Brown

        Doug — Many in SoCal are living in a false paradise, what with prices in much of that region having risen 2-5% in the last 15 months or so. Take away the tax credit — then the federal pause in foreclosures — then California’s extension of that pause — and there’s the artificial demand for ya.

  2. Fantastic to see Hawaii in the top 3 for the forecast. Surprised, but pleased to see! We have a good market overall and did not get slammed too bad with price drops. I agree with Jeff, I am surprised to not see Nevada, California, Arizona being a center of topic.
    Great post Douglas!

    • Matt,

      Thanks for the comments. I was surprised to see Hawaii represented as well, but nice to see some new cities on these charts. Cities such as Birmingham, Pittsburgh and Columbus surprised me as well.

      Doug

  3. Every since I’ve been looking for a new house recently, I’ve been paying close attention to the housing market. Being in Dallas, the houses are at a very good price..If anyone looking for a nice location to build a home try Plano, TX.

  4. I am currently in the Arlington Real Estate market. My market has the benefit the strong Dallas and Fort Worth relocation that is currently going on. The central location is key. The economy in Texas has really avoided in many respects the downturn. The mortgage regulations and lack of housing price spikes had a lot to do with the stability of the markets. Great Article.

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