Dive Brief:
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Colorado is the “most promising” housing market in the country, according to an analysis by NuWire Investor, an investment information service.
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A statewide seller’s market—especially in Denver—pushed the Centennial State to the top of the list. Bidding wars among investors willing to pay above asking prices; robust sales of single-family homes; and a supply of houses that is unable to meet demand were factors the analysts considered when making their choice
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Rounding out the analysts’ Top 5 up-and-coming markets are Florida, Texas, California, and Washington.
Dive Insight:
Builders in other states can learn a couple of things from these hot markets. First, the best place to build might be in an urban core. More young people in these top markets and nationwide are moving downtown, and while they’re attracted to apartment living at the moment, they’re likely to buy homes as the job market improves. Second, young and single adults are looking for product built to suit their pared-down households—and they’re willing to move to the cities that have it. Builders in Seattle are feeding that appetite with a mini-building boom of microhousing.
Though a pitfall of a growing market is a shortage of construction workers. Denver, along with several cities in Texas, is having a hard time filling vacancies in the industry in order to keep up with demand.