June 19th, 2012
The National Association of Home Builders released a report which showed that while the number of metropolitan statistical areas has declined, the market has still witnessed some strengthening, as many new areas have experienced significant gains.
The findings in the firm’s Improving Markets Index may signal that many major cities in the United States could be good places for corporate relocation.
The report showed that 80 MSAs were considered to be improving during June, which was a decline from May’s figure of 100. However, the statistics showed that 28 new cities newly joined the list, while 30 different states and Washington, D.C., were represented. In order for an MSA to be considered for the index, it needs to have six straight months of improvement in home prices, employment growth and housing permit purchases.
“The volatility of this index mirrors the uncertain economic conditions in some of our nation’s individual markets,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. “The fact remains, however, that real estate fundamentals are still improving in many areas across the country.”
With so many areas of the country recovering, it may be easier for companies to shift their employees to new destinations due to affordability and availability of homes.