Business Insider wrote an article about the 15 hottest American Cities for 2015
They used the criteria of: “job growth, population growth, affordability, livability, and the health and well-being of the residents. We also considered how innovative and "cool" the city is — an important factor in attracting the young, creative types who will make each city hot.”
Reading through their criteria, I couldn’t help but notice that the main factors they used to define hot cities also look very similar to our analytical look at real estate markets Although, we don’t necessarily factor “cool” into our equation, as there are some cities on their list that qualify simply due to their “coolness”, but otherwise would not be sound investments for real estate. The following made their list of hot cities:
Atlanta. GA - Austin, TX - Burlington, VT - Cambridge, MA
Denver, CO - Detroit, MI - Madison, WI - Mobile, AL
Nashville, TN - Oakland, CA - Pittsburgh, PA - Queens. NYC
Venice Beach, CA - Washington DC
Specifically interesting to us are the fact that two of the cities are in Texas. For our purposes I have included what they wrote about the Texas cities.
Austin, Texas, has a booming economy and strong tech industry that will bring in tons of young and talented workers.
Austin was named the best-performing city in the US this year by the Milken Institute.
The city came in second for future job growth, largely because of its burgeoning tech scene. Companies like Dell, National Instruments, and Flextronics are based here, and several startups have been coming out of the University of Texas.
All this has led to an influx of young professionals and recent college grads, which in turn has led to a boom in construction.
Houston, Texas, will be the place to be for American 20-somethings.
Between 2000 and 2012, Houston saw a 49% increase in the percentage of college graduates ages 25 to 34, according to a recent report by City Observatory. The rate of young, college-educated people moving to Houston is increasing faster than anywhere else in the country.
This is largely due to Houston being the biggest job-creating city in the US. More Fortune 500 companies are headquartered there than anywhere else — especially oil and energy industry companies.
One of the largest components to the booming real estate market in Texas is JOBS, or more specifically, higher paying jobs. As higher paying jobs are moving into Texas, we are seeing pockets of desirable neighborhoods see an increased level of gentrification. This in turn leads to excellent investment opportunities as the demand in those areas is well in excess of the supply.
If you want to look at the details of the others cities on the list read more at: http://www.businessinsider.com/the-15-hottest-us-cities-for-2015-2014-11?op=1#ixzz3UNfwYV92
Cheers to those hot job markets in 2015