A summer full of blistering temperatures across much of the US has proven no match for slowing down record-setting growth in America’s burgeoning cities. Strong demand in metropolitan areas, especially in those in Texas, continues to transform entire communities with brand new neighborhoods. Along with growing at breakneck speeds, affordability of apartments and rental homes shifted with the changing needs of consumers.
Strongest Growing Cities in America
Texas leads the way in population growth nationwide with the Dallas, Austin and Midland-Odessa metropolitan areas driving population increases in the Lone Star State. Texas has recently attracted business from foreign and domestic companies by offering a number of tax incentives. Employees of large Texas employers like Dell, Texas Instruments, and Exxon Mobil pay the 13th highest state sales tax and no income tax.
Cities outside of Texas are also showing a strong uptick in population as Irvine, California and Gilbert Arizona building strong momentum as well with 4.21% and 3.4% growth rates respectively. Their increases are especially noteworthy, because both cities suffered housing stagnation during 2008 Housing Crisis.
Multifamily Home Growth Among America’s Fastest Growing Cities
The growth trend in multifamily home construction–which includes apartment buildings, condos, and other connected living communities pushes North Carolina to the forefront. Raleigh, Cary, and Durham represent three stand-outs in the top 25 fastest-growing cities. Part of these cities’ success may be due to their location within “The Research Triangle,” which relies on many universities including Duke University, University of North Carolina at Chapel Hill, and North Carolina State University. These schools have built the economic base that has attracted a sizable amount of large technology companies and a handful of world renowned medical facilities. Growth of multifamily home construction in the area is in line with national demographic trends for millennials and their unwillingness to commit to long term single family homes and instead rent apartments and other lower risk multifamily living situations.
Affordability of Multifamily Homes in America’s Fastest Growing Cities
In contrast to growth in both population and construction of new homes, the ability for people to afford housing reveals different sides to this great housing and population boom seen in America’s Fastest Growing cities. Affordability was calculated using the formula constructed below (Consumer Price Index (CPI) was not used to maintain more accuracy)
(Year) Multifamily Home Average Value for City/ (Year) Median Household Income for City = Housing Affordability Difficulty
- Higher score = lower affordability
- Lower score = higher affordability
Using US Census data, combined with Federal Income Predictions and Real Estate Reporting from Texas A&M’s Real Estate Center we were able to build an index of affordability. America’s Top 25 fastest growing cities face dramatically different economic issues whether it’s New Orleans’s slow recovery from Katrina and Gulf Horizon or the booming growth that Texas has witnessed lately. How each and every city, neighborhood, and household faces the growth of their city in population, construction, and housing affordability is a story unto itself and will remain a focus here at MyNewPlace.