Hot Housing Markets

What’s so special about Cumberland, MD-WV? This energetic, small town is one of a select number of cities around the country that appears to be weathering the housing storm. While in many metropolitan areas housing prices are either stabilizing or are on a downward spiral, Cumberland’s market continues to climb. One indicator of prices, the OFHEO Housing Price Index, shows a growth rate of nearly 11% for the last year. The market is also still quite affordable. Over 80% of the households in that area with the city’s median income can afford homes that are currently up for sale.

Hot housing markets can also be found in large parts of Texas, North Carolina, Pennsylvania and other more localized areas of the country. Below is a heat map showing those hot spots. The cities used to generate the map include those whose OFHEO’s Housing Price index has risen over the last year and Wells Fargo/NAHB Housing Opportunity Index is currently above the national average of 40%. A normalized index was created to weight cities based on their relative ranking on both criteria. Cumberland comes out at the top of the pack.

Hot Housing Markets

Other notable cities on the list include:

The Gazelle: Housing prices in Midland, TX are surging. Over the last year, that city’s OFHEO HPI rose by 12.5%, which is the the higest growth rate out of all cities on the list. On the downside, the market appears to be out of reach for many who live in that city. It’s HOI is only 41.2 and declining.

Best on a Budget: The most affordable market on the list with an HOI of 87.5 is Indianapolis, IN. Prices in this market though, have risen at only a modest rate in the past year. The city’s HPI grew by just .7%.

Big City Sizzler: Austin, TX is one of the larger metro areas on the list whose housing prices are growing at a relatively high rate and it’s housing remains more affordable than the national average. This 16th most populated city’s HPI increased 7.2% and it’s HOI is currently around 53.1.

Housing Price Indices, Housing Opportunity Indices and other market attributes for all 76 cities on the list are available for interactive mapping at geocommons.