America’s Fastest-Growing Housing Markets

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9. Danville, VA
> Expected price increase: 3.3%
> Unemployment rate: 8.5%
> Change in home prices (2010Q4-2011Q4): 0.0%

Home prices in Danville fell 6.1% from their peak in the first quarter of 2009. Compare to most cities, this decline is relatively small. The Danville metropolitan area is home to just over 100,000 people, making it among the least populated regions in the country. After a year in which home prices did not increase or decrease — between the fourth quarter of 2010 and the fourth quarter of 2011 — home prices in the city are now expected to rise by 3.3% by the end of this year — one of the largest increases in the country.

Also Read: Six Cities Where Rents Are Skyrocketing

8. Kennewick-Pasco-Richland, WA
> Expected price increase: 3.6%
> Unemployment rate: 8.7%
> Change in home prices (2010Q4-2011Q4): -0.3%

Home prices in the Kennewick-Pasco-Richland, Washington metro area were barely touched by the recession. Real estate values didn’t peak until the third quarter of 2010 and are only down 1.8% since that period. Fiserv projects home prices will increase 3.6% in the region through the end of this year. By the end of 2013, values are expected to increase an additional 3.8%.

7. Lewiston, ID-WA
> Expected price increase: 3.6%
> Unemployment rate: 6.6%
> Change in home prices (2010Q4-2011Q4): -1.8%

The Lewiston metropolitan area, which has the second-smallest population in the country, is projected to undergo its first improvement in housing prices since 2009 in the coming year — an increase of 3.6%. In the following year, home prices are expected to increase 6.2%. This is within the top eighth of largest increases for next year. Between the fourth quarter of 2011 and the fourth quarter of 2016, home prices in the Lewiston housing market are expected to increase an average of 3.7% each year.

Also Read: America’s Favorite Beers

6. Eugene-Springfield, OR
> Expected price increase: 3.8%
> Unemployment rate: 8.3%
> Change in home prices (2010Q4-2011Q4): -6.1%

From their peak in the second quarter of 2007, home prices in the Eugene-Springfield region fell 21.2% during the recession, putting it in the top third for the biggest declines in the country. In the last year alone, prices fell nearly 6%, the 40th worst decline in the country. However, Fiserv projects the region has hit its trough. Through the fourth quarter of this year, home prices are expected to increase 3.8%. Between the end of this year and the end of 2013, they will go up an additional 8.3%.

5. Hagerstown-Martinsburg, MD-WV
> Expected price increase: 3.8%
> Unemployment rate: 7.8%
> Change in home prices (2010Q4-2011Q4): -6.7%

Between the fourth quarters of 2010 and 2011, home prices in the Hagerstown-Martinsburg metropolitan area dropped 6.7% — among the largest decreases in the nation for that period. From their peak in the first quarter of 2007, prices have dropped a total 32.1% — more than most markets. However, in the coming year, home prices are expected to increase 3.8%. In the year after that, they are projected to grow an additional 3.9%.