Realtor.com has released its inaugural list of the fastest growing neighborhoods in America, based on the increase in the number of households, jobs and new homes under construction. All of the top 10 “boomtowns” are in major cities or within 20 miles of one, and three were included in Investopedia’s 2015 list of the best cities for advisors to find clients.
The top 10 list has “a decided urban tilt,” says Jonathan Smoke, chief economist for Realtor.com. “This does reflect a shift towards denser and more walkable locations that appeal to both the young and older demographic segments that are driving today’s housing market.”
Ryan Fuchs of Ifrah Financial Services in Frisco, Texas, says, “Advisors should view these rankings as another data point … [that] can certainly indicate areas of future growth, which can be an indicator of areas to get clients.” He cautions, however, that “high projected growth … does not necessarily mean that the people moving in would fit a particular advisor’s profile of an ideal or preferred client.”
In compiling the list, Realtor.com first ranked the single best county in each state, then the 30 best counties from that list, all based on a “balanced growth” index for job creation, new construction starts and household growth in 2016. New construction accounted for 50% of the weight in the index, while household growth and job growth each had a 25% weighting. The 10 best neighborhoods in the highest rated counties were then chosen based on a five-year projection for household growth. All of these so-called boomtowns are projected to experience household growth between 9% and 20% over the next five years. The report was based on data from multiple sources including Moody’s Analytics, Nielsen Demographics and Realtor.com.
Many of the top-ranked counties today also dominated the housing boom in 2005, according to Smoke. Los Angeles County and Cook County in Illinois, however, are showing substantially stronger growth now.
Here are Realtor.com’s top 10 boomtowns in America:
ZIP Code: 30363
Neighborhood: The Atlantic Station neighborhood is on the northwestern side of midtown Atlanta and near the Atlanta Beltline, a former railway corridor around the core of Atlanta that is being developed as a multi-use trail.
Housing Starts Growth for County vs. Top 100: 2.3X
Job Growth for County vs. Top 100: 1.4X
ZIP Code: 60603
Neighborhood: Home to the Art Institute of Chicago, and east of South Wacker Drive, a major roadway in downtown Chicago, and south and west of the famous Millennium Park, which borders Lake Michigan.
Projected 5-Year Household Growth: 18.9%
Housing Starts Growth for County vs. Top 100: 1.4X
Job Growth for County vs. Top 100: 4.2X
8. Brooklyn, New York
ZIP Code: 11249
Neighborhood: The Willimasburg section of Brooklyn was once the home of hipsters, and now, in this particular ZIP code, the home of residents in multimillion-dollar condos along the East River waterfront.
Projected 5-Year Household Growth: 9.2%
Housing Starts Growth for County vs. Top 100: 1.9X
Job Growth for County vs. Top 100: 2.0X
7. Rolesville, North Carolina
ZIP Code: 27571
Neighborhood: Rolesville is a suburb about 30 miles outside of Raleigh, the state capital, with many family farms and, at almost 180 years old, a small-town feel.
Projected 5-Year Household Growth: 12.1%
Housing Starts Growth for County vs. Top 100: 2.4X
Job Growth for County vs. Top 100: 1.3X
ZIP Code: 98121
Neighborhood: The home of the famous Pike Place market on the Puget Sound waterfront, this neghborhood also includes the Seattle acquarium and is due south of the landmark Space Needle.
Projected: 5-Year Household Growth: 11.9%
Housing Starts Growth for County vs. Top 100: 3.1X