Top 10 Markets with 'Elastic' Housing Supply
August 22, 2016 11:20 AM
Top 10 Markets with 'Elastic' Housing Supply
Nationwide, homebuilding has not kept pace with rising prices and soaring demand. Long-run elasticity a measure of the gap between growth in home prices and housing supply was at 0.17 during the first quarter of 2016, down from 0.18 a year ago and below the 30-year average of 0.20. Put another way, builders are providing fewer new housing units as prices rise than they have in the past, according to real estate listing website Trulia. Here's a look at the top 10 housing markets bucking the national trend. To determine the elasticity of these housing markets, Trulia compared the 20-year change in housing stock to the 20-year change in quality-adjusted home prices.
No. 10: Fort Myers-Cape Coral, Fla.
Increase in Housing Stock: 73.4% Increase in Housing Prices: 126.2% Housing Supply Elasticity: 0.58
No. 9: Washington, D.C.
Increase in Housing Stock: 78.0% Increase in Housing Prices: 132.5% Housing Supply Elasticity: 0.59
No. 8: Greensboro-Winston Salem-High Point, N.C.
Increase in Housing Stock: 31.4% Increase in Housing Prices: 47.0% Housing Supply Elasticity: 0.67
No. 7: Columbia, S.C.
Increase in Housing Stock: 44.7% Increase in Housing Prices: 66.4% Housing Supply Elasticity: 0.67
No. 6: Indianapolis, Ind.
Increase in Housing Stock: 30.4% Increase in Housing Prices: 44.3% Housing Supply Elasticity: 0.69
No. 5: Atlanta, Ga.
Increase in Housing Stock: 53.4% Increase in Housing Prices: 68.9% Housing Supply Elasticity: 0.77
No. 4: Charlotte-Gastonia-Rock Hill, N.C.-S.C.
Increase in Housing Stock: 60.9% Increase in Housing Prices: 76.1% Housing Supply Elasticity: 0.80
No. 3: Albuquerque, N.M.
Increase in Housing Stock: 37.5% Increase in Housing Prices: 46.1% Housing Supply Elasticity: 0.81
No. 2: Raleigh-Durham-Chapel Hill, N.C.
Increase in Housing Stock: 71.6% Increase in Housing Prices: 87.2% Housing Supply Elasticity: 0.82
No. 1: Las Vegas, Nev.
Increase in Housing Stock: 87.8% Increase in Housing Prices: 75.2% Housing Supply Elasticity: 1.17
