To determine where home prices are expected to rise most in the next couple of years, Forbes looked at projections for housing starts from the National Association of Home Builders and job-growth projections from Moody’s Economy.com.
Forbes identified cities that are likely to be vibrant markets because jobs are increasing and the housing market wasn’t overbuilt during the boom.
"The logic is pretty straightforward," says Mark Zandi, chief economist at Moody's Economy.com. "People will spend as much on housing as their income will allow them. House prices are very closely tied to household income over the long run when you look at business cycles."
According to Forbes, these are the 10 cities where home prices are most likely to rise:
Forbes identified cities that are likely to be vibrant markets because jobs are increasing and the housing market wasn’t overbuilt during the boom.
"The logic is pretty straightforward," says Mark Zandi, chief economist at Moody's Economy.com. "People will spend as much on housing as their income will allow them. House prices are very closely tied to household income over the long run when you look at business cycles."
According to Forbes, these are the 10 cities where home prices are most likely to rise:
- Albuquerque, N.M.
- Charlotte, N.C.
- San Antonio, Texas
- Portland, Ore.
- Austin, Texas
- Salt Lake City, Utah
- Colorado Springs, Colo.
- Minneapolis
- Atlanta
- Oklahoma City
Source: Forbes.com, Matt Woolsey (08/25/2008)
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