Dive Brief:
- Realtor.com has released its list of the country’s 10 fastest-growing neighborhoods, and, while no state pops up more than once, four are in the Southern region, two are in the West, and the others represent regions all over the country.
- The online real estate company said that the diverse neighborhoods on its list, based on a ZIP code analysis, have logged significant gains in jobs, new households and new home construction — and that positive activity is expected to continue.
- According to Realtor.com, each of its picks have shown up to five times the employment gains, seven time the household growth, and six times the new home construction of the 100 top counties or areas in the U.S. In addition, the site projected each neighborhood will see a 9% to 19% jump in households over the next five years.
Dive Insight:
Jonathan Smoke, Realtor.com chief economist, said the neighborhoods on the list are experiencing "balanced growth" and will be able to meet future demand for housing because of the increased construction in those areas. Builders could see greater success in these areas, as strong demand is expected to continue.
While job gains, good schools, nightlife, great scenery and other community amenities are part of the appeal of each of these areas, new construction is the main force driving all that growth. Many areas of the country — also the priciest, like San Francisco — are suffering from extremely low levels of available inventory. This has led to high rents, skyrocketing home prices and even out-migration in states like California.
Recently, BuildZoom economist Issi Romem reported that if a city is to accommodate its residents’ need for housing, it must expand outward geographically or, for the cities that cannot, build with a mindset toward higher density. The residential towers that Realtor.com said are under construction in Chicago and Brooklyn reflect Romem’s theory, as does the outwardly expanding Southwest and Southern neighborhoods like Gilbert, AZ and Mountain’s Edge, NV.
The full Realtor.com list of the fastest-growing neighborhoods includes:
- Power Ranch, Gilbert, AZ
- Historic Cultural Center, Los Angeles
- Downtown, Dallas
- Downtown, Miami
- Mountain’s Edge, Las Vegas
- Belltown, Seattle
- Rolesville, NC
- Williamsburg, Brooklyn, NY
- The Loop, Chicago
- Atlantic Station, Atlanta