Nine cities joined the ranks of U.S. housing markets that are steadily improving according to the NAHB’s third Improving Markets Index (IMI) released Nov. 7. Out of the 30 markets now on the IMI, eight are in Texas where energy industries buoy the economy, but three new states made their first appearance—Colorado, Georgia, and Ohio—demonstrating a healthier geographic diversity. Bigger metropolitan areas are conspicuously still absent, however, with Pittsburgh and New Orleans being the only two listed. NAHB chief economist David Crowe says this is because large markets were hit hardest with unemployment and distressed mortgages and will take longer to recover. “However, momentum is building in pockets of the country where…consistent, measurable improvements in economic conditions are now becoming apparent,” he adds.
The IMI was launched in September to illustrate to lenders that stable markets exist where mortgages are a smart risk and to encourage industry pros by demonstrating that recovery is happening even if it’s not yet widespread. Analysts at the NAHB look at three major market indicators to create the monthly report—employment rates from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit numbers from the U.S. Census Bureau. For a city or metropolitan area to be included on the IMI, it must show growth in all three areas over a period of at least six months.
