Photo: Craig Talbert/Flickr
Boulder, Colorado has been named the top US housing market for growth and stability by the personal finance site SmartAsset.
Three of the top 10 markets were located in the Centennial State, and two were in Colorado’s northern neighbor — Wyoming. That means that half of the top 10 housing markets for growth and stability are located in just two states.
“Rising home prices can help homeowners build equity in their homes, but when prices are rising too quickly, a boom can turn into a bust,” Ross Urken, SmartAsset senior editor, tells Livabl.
Over the last 25 years, the average home price in Boulder has grown 276 per cent. SmartAsset estimates that over that same period, there was “almost a 0 percent” chance that a homeowner would see a significant drop in home value 10 years from the date of purchase.
That, according to SmartAsset, is what makes Boulder the most stable housing market in the country, for the fourth year in a row.
“This is roughly in line with our previous findings, which have shown average home prices in Boulder grow between 269% and 314% over a 25-year period,” says Urken.
Currently, the median home value in Boulder is around $687,000. According to a recent article in DailyCamera.com, an influx of wealthy out-of-town buyers has driven up home prices in the city.
The Austin, Texas market landed in second place. Home prices in the capital city have risen by 243 percent over the past 25 years.
“To put that into dollar terms, a home you bought in Austin in 1993 for $100,000 would be worth $243,000 today,” reads the report.
New construction in the metro is currently booming, with many buyers attracted to Austin’s eclectic live-music scene and vibrant arts communities. Austin plays host to world famous SXSW — an annual conglomerate of film, interactive media, and music festivals and conferences — as well as the popular Austin Film Festival.
The Austin market tied with Boulder for first with the lowest chance of a significant price decline.
Like Boulder and Austin, the odds of taking a loss on a home purchase in Bismarck, North Dakota is “remote.” Between 1993 and 2017, the typical home value grew by 224 percent. And, there were no quarters of significant price declines over any 10-year period between those years.
Fort Collins, Colorado and Midland, Texas rounded out the top 5.
The two Wyoming metros — Casper and Cheyenne — landed in the sixth and tenth positions, respectively.
Meanwhile, two white-hot California markets made the top 25 — San Francisco (13) and San Jose (15). Since 1993, San Francisco home prices grew by 288 percent, while San Jose home prices rose 270 percent.
To compile its list of the top housing markets for growth and stability, SmartAsset used data from the federal housing administration for over 350 metro areas, covering the years between 1993 and 2017.
Markets were then compared and ranked using two metrics: the likelihood of price declines of 5 percent or more during any 10-year period, and overall home price growth during that period.
Click here to read the entire report.