NAHB Data Shows 76 Housing Markets on the Rise

The list of local housing markets that are improving in terms of permits, prices and employment for a sustained 6 months in a row is on the rise, nearly doubling in January 2012 vs. December 2011.

According to the National Association of Home Builders/First American Improving Markets Index (IMI), there are now 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. New entrants to the list in January include the following (listed alphabetically by state):

• Florence, AL
• Tuscaloosa, AL
• Fayetteville, AR
• Denver, CO
• Greeley, CO
• Bridgeport, CT
• New Haven, CT
• Cape Coral, FL
• Jacksonville, FL
• Punta Gorda, FL
• Honolulu, HI
• Ames, IA
• Des Moines, IA
• Dubuque, IA
• Elkhart, IN
• Indianapolis, IN
• Lafayette, IN
• Lake Charles, LA
• Worcester, MA
• Grand Rapids, MI
• Lansing, MI
• Monroe, MI
• Minneapolis, MN
• Columbia, MO
• Joplin, MO
• Fargo, ND
• Manchester, NH
• Cincinnati, OH
• Oklahoma City, OK
• Tulsa, OK
• Corvallis, OR
• Erie, PA
• Philadelphia, PA
• Chattanooga, TN
• Clarksville, TN
• Nashville, TN
• College Station, TX
• Dallas, TX
• Victoria, TX
• Madison, WI

"The fact that the list of improving housing markets nearly doubled this month shows that a significant, positive trend is developing, and is even more relevant when you consider the expanding geographic distribution of the list - which now includes 31 states and the District of Columbia," notes NAHB chairman Bob Nielsen, a home builder from Reno, Nev. "This trend could be even stronger if not for the numerous impediments that continue to slow a housing and economic recovery, including overly restrictive lending policies and the growing inventory of distressed properties in certain markets."

"While relatively small metropolitan areas continue to dominate the list of improving housing markets, it's important to note that several major metros in diverse parts of the country have now joined the field as well, including such metros as Dallas, Denver, Honolulu, Indianapolis, Nashville and Philadelphia," adds NAHB chief economist David Crowe. "This is an encouraging sign that gradually strengthening economic conditions are starting to take hold across a broader swath of America."

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Only five metropolitan areas dropped from the NAHB/First American Improving Markets Index in January. These included Anchorage, Alaska; Fort Wayne, Ind.; Canton, Ohio; Scranton, Pa.; and Charleston, W. Va.