Check-Up Time: The 2009 Local Market Health Index

Where does your local market rank on our list of top 75 local housing markets, ranked from healthiest to weakest?

The answer will depend on several variables. To rank these markets, Builder magazine worked with Hanley Wood Market Intelligence to examine population trends and job growth,the perennial drivers of housing demand. We also considered how home prices have fared during the downturn. And finally, we considered the ratio of building permits to population, which may be the single best ongoing indicator of builder confidence in a market.

The results of these metrics were combined to produce a score for each market.

Last week, we previewed the 15 weakest markets. These markets were decimated by an unprecedented combination of job losses, falling home prices, and rising foreclosures. They will probably be among the last to recover from the downturn.

The week before, we highlighted the 15 “healthiest” markets. While only a handful are growing, these markets nonetheless exhibit positive attributes,and in some cases, even home price appreciation. They are likely to be among the first to recover from the downturn.

This week we add the list of the markets in the middle, the ones that comprise the center of the bell curve. At the top of this list, in markets 16 to 30, you’ll find metro areas that have benefited from strength in energy and agriculture, along with markets that didn’t go wild and crazy during the boom. Toward the end of the list, in positions 45 to 60, you’ll find more markets reeling from falling home prices and foreclosures, many of them located in California and Florida.