Spokane, Wash., Las Vegas, Charlotte, N.C., and Orlando, Fla., are the metropolitan areas most primed for growth over the next decade, according to an analysis from Redfin.
Redfin said the four metros are attracting out-of-town homebuyers in part because of the low cost of acquiring and developing land for new home construction in those places.
In Spokane, sales of new homes increased 37 percent year-over-year during last’s year’s fourth quarter. Redfin’s analysis said Spokane is the most-competitive housing market in the country. The city’s median price for existing homes is $255,000 and $350,000 for new homes.
“Tons of people are moving in from the coasts because Spokane is more affordable and less crowded,” Redfin market manager Michelle Kendrick said in a release. “Spokane has all of the basics you would want in a city, but at a great price. It feels like we are in a construction boom.
“A lot of the new construction is happening on the outskirts of the city, which contributes to our version of traffic,” Kendrick said. “To people from out of town the traffic is nothing, but if you have lived here a long time you do notice it. Job growth has also been a draw for out-of-towners. We have a new Amazon distribution center, the airport is expanding, and the medical industry is big and growing.”
In Las Vegas, home sales are growing at 15.6 percent, with 47 percent of homebuyer interest coming from outside the metro, Redfin found. The primary source of out-of-town homebuyers is Los Angeles, where the median home price is $650,000 and land comprises about 61 percent of home values.
Homebuyers in Las Vegas can purchase an existing home for $285,000 or a new home for $388,000. With land comprising only 25 percent of home values in Las Vegas, Redfin said new construction is a profitable investment for developers.
“Las Vegas is a pretty competitive market, and I see both new homes and existing homes receiving multiple offers,” Redfin agent Carol Vandenberg said. “I see plenty of buyers from Los Angeles. They are used to the sunshine and the two cities are so connected.”
Home sales in Charlotte are growing at an annual pace of 14.5 percent, with 40 percent of search activity coming from outside of the city. Redfin said Charlotte is well positioned to absorb growth because land comprises only 28 percent of home values on average there.
Sales of new homes in Orlando increased 21 percent year-over-year during the fourth quarter. Land accounts for a mere 29 percent of home values in the Orlando area.