Real estate’s next frontier may be small metros with hot job growth and high demand for housing. The Milken Institute, known for publishing the 2012 Best Performing Large Cities report, also produces the 2012 Best Performing Small Cities rankings. The 2012 index analyzes 179 small metro areas.
The latest class of top 10 honorees all benefit from one or more of the following three components.
- Stable public sector employment. (College or university towns, key research centers)
- A growing energy sector
- Thriving high-tech sector
Six of top 10 small cities are alumnae of the 2011 rankings. These markets were immune to the housing collapse as their slow but steady housing markets never experienced a housing bubble.
The real estate appreciation outlook is strong in these markets. Residential sales and investment are expected to thrive provided sufficient inventory is available.
Top 10 Best Performing Small Cities for 2012:
- Logan, UT-ID — Utah State University
- Morgantown, WV — West Virginia University
- Bismarck, ND — Oil boom. Well funded state government and infrastructure.
- Odessa, TX — Energy boom kindled 8.5% growth in employment.
- Fargo, ND-MN — Oil boom. Steady healthcare and education centers.
- Longview, TX — Gas production and mining. Diversified economy.
- State College, PA — Penn State University. Gas pipeline.
- Midland, TX — Permian basin energy center.
- Tyler, TX — Healthcare and telecom hub.
- Columbia, MO — Certified industrial sites and a multiple stable employment bases.
To check out the rankings for all 179 metros or to download the full Best Performing Cities 2012 ranking report, visit Milken Institute.org.
To conduct property searches in cities throughout the nation visit FirstPrestonHT.com or BidSelect.com
For real estate portfolio management and real estate technology solutions, visit FirstPrestonHT.com
Source: Milken Institute. Best-Performing Cities 2012. Ross C. DeVol, Armen Bedroussian, Yu Liu. January 2013.