Photo: Chris J/Flickr
The term “boom town” probably won’t call to mind a sprawling low-rise development in Gilbert, Arizona — but maybe it should.
Power Ranch, a suburban community dotted with new-build homes of stucco and clay tile, has topped realtor.com’s roundup of the fastest-growing neighborhoods in America.
The real estate search site went on a nationwide neighborhood watch recently, scanning ZIP codes for their performance in three areas: home construction, job creation and household formation.
Strength across these fields is a recipe for the modern boom town, according to realtor.com, which looked to projections to gauge future growth as well.
“The strength of the residential real estate market is closely correlated to growth in jobs and households,” said Jonathan Smoke, realtor.com’s chief economist, in a blog post.
Power Ranch, a master-planned Phoenix Metro Area community from 19 different builders — including heavyweights like Toll Brothers and D.R. Horton Homes — is not only a hotbed for new-home construction.
Household growth within its ZIP code’s reach, which does cover Seville and Trilogy as well, realtor.com notes, is projected to clock in at 15.9 percent over the next five years, a quality helping it take the top spot. There are also 25,000 housing starts and 53,000 new jobs expected this year in the area.
If you haven’t heard of Power Ranch (or Gilbert, for that matter) before, you’re likely not alone.
But the three neighborhoods that follow are decidedly more recognizable: Downtown Los Angeles, Downtown Dallas, and Downtown Miami.
While each is in the heart of an already-booming metropolis, there are further waves of development sweeping across these urban cores, explained realtor.com.
For instance, the Downtown Los Angeles 90012 ZIP, labelled “Historical Cultural Center” by realtor.com as it includes Chinatown, Little Tokyo, Elysian Park and Mission Junction, saw work begin on the $140-million LA Plaza Cultura last year.
The major mixed-use project will bring 355-units to the core — and more. “The complex will play a critical role in helping to strengthen the connections between El Pueblo and adjacent Chinatown and the rest of the rapidly gentrifying downtown,” said realtor.com.
Five-year projected household formation in the already dense area is expected to reach 8.8 percent, realtor.com noted.
There are currently 6,404 homes under construction in Downtown Los Angeles and 9,452 in central Miami, according to BuzzBuzzHome Market Snapshot data.
According to Market Snapshot, there are no housing developments under construction in Downtown Dallas, but several large residential projects were recently completed. Housing starts in the broader Dallas County are expected to hit 16,000 this year, with job growth totalling 40,000 new positions during that period.
Of the top 10 neighborhoods, the one that is expected to see the highest rate of household formation through 2020 is Mountain’s Edge, Las Vegas, Nevada.
Realtor.com said household growth in the 89179 ZIP, home to this planned community, should hit 19.4 percent, according to projections.
To see what other US locales made the grade, check out realtor.com’s top 10 neighborhood list below.