These small US cities have exploding luxury markets

Boise, Idaho and other small cities topped Coldwell Banker’s list of cities to watch

National /
Feb.February 22, 2020 02:00 PM
Boise, Idaho (Credit: iStock)

Boise, Idaho (Credit: iStock)

The shift from the nation’s top markets to secondary markets is accelerating.

Coldwell Banker’s “State of Luxury 2020” report picked out several secondary markets to watch alongside some larger markets that still have room to grow, according to Inman. The top markets to watch are Boise, Idaho; Charlotte, North Carolina; Colorado Springs, Colorado; Cincinnati, Ohio; and Fort Worth, Texas.

The list was based on an analysis of job and population growth against sales-price-to-list-price ratios, days on market, median list price, and inventory.

Secondary cities can be attractive to homebuyers for a number of reasons. They’re attractive for buyers who want to live in an urban environment but who can work remotely — they don’t necessarily need to be in the nation’s larger job centers to work high-paying jobs. Secondary markets can get buyers more real estate bang for their buck as well.

Coldwell Banker isn’t the first to see the trend toward secondary markets. Developers and investors have turned their attention toward smaller markets in search of returns as cap rates compress in the nation’s premier markets. Secondary and suburban markets have outperformed larger markets by various metrics over the last few years, like household income growth and employment growth.

Still, several larger markets made Coldwell Banker’s list. Malibu and San Diego, California; Austin, Texas; and Arlington, Virginia were picked as markets to watch. Malibu topped markets in terms of price-per-square-foot with a median of $4,269-per-square-foot. [Inman] – Dennis Lynch


Related Articles

arrow_forward_ios
42 Further Lane, East Hampton (Out East)
Luxury brokerage Hedgerow faces its toughest challenge
Luxury brokerage Hedgerow faces its toughest challenge
Hugh Jackman and 100 Eleventh Avenue #PHA (Getty, StreetEasy)
Hugh Jackman buys penthouse at Jean Nouvel tower
Hugh Jackman buys penthouse at Jean Nouvel tower
Bridgehampton, NY (Google Maps)
Divorce lawyer sells Bridgehampton home for $45M
Divorce lawyer sells Bridgehampton home for $45M
A photo illustration of One John Street (left) and 79 Second Place (right) in Brooklyn (Douglas Elliman, Front Inc., Getty Images)
Brooklyn’s top deal last week? Just $6M
Brooklyn’s top deal last week? Just $6M
565 Broome Street, Heat Wave
Manhattan’s luxury market records slowest week since 2020
Manhattan’s luxury market records slowest week since 2020
Hilton Head (Illustration by The Real Deal with Getty Images)
The new normal: $1M price tags in Hilton Head
The new normal: $1M price tags in Hilton Head
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
13000 and 13001 Lewin Lane (Photos via Jills Zeder Group)
#Twinning: Identical brothers asking $54M for side-by-side mansions
#Twinning: Identical brothers asking $54M for side-by-side mansions
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...