13.6 C
Munich
Friday, August 6, 2021

Montana Boomtown Jumps to No. 1 on WSJ/Realtor.com Housing Market Index

Must read

Belarus officials removed from Tokyo Olympics after trying to send sprinter home – National

Two Belarus Olympic officials involved in attempting to send sprinter Krystsina Tsimanouskaya home from the Tokyo Olympics have had their Games accreditation revoked and have been...

Business Groups Call on Biden to Restart Trade Talks With China

WASHINGTON—Nearly three dozen of the nation’s most influential business groups—representing retailers, chip makers, farmers and...

Canada’s Evan Dunfee nabs bronze in men’s 50km race walk at Tokyo Olympics – National

Canada’s Evan Dunfee nabbed the bronze medal in a surprise finish in the 50-kilometre race walk at the Tokyo Olympics Friday. Dunfee overtook Spain’s Marc...

California to mandate COVID-19 vaccines for health workers

SACRAMENTO, Calif. (AP) —...

Billings, Mont., is the new No. 1 on The Wall Street Journal/Realtor.com Emerging Housing Markets Index, boosted by its affordability and appeal to remote workers.

The index reflects how the housing boom has ignited homebuying activity in smaller to midsize cities around the U.S. The top 20 cities in the ranking have an average population size of just over 300,000.

In the latest index rankings published on Tuesday, smaller cities dominate. The No. 2 metro area is Coeur d’Alene, the lakeside Idaho city that held the top position when the index premiered in April. Fort Wayne, Ind., Rapid City, S.D., and Raleigh, N.C., round out the top 5.

Ask WSJ

Join WSJ reporters Nicole Friedman and David Ewalt and Realtor.com Chief Economist Danielle Hale as they discuss the real-estate market and our latest ranking of U.S. metro areas. The conversation starts at 1:30 p.m. ET today. Ask your questions now.

The index identifies the top metro areas for home buyers seeking an appreciating housing market and appealing lifestyle amenities. This quarter’s version added the new criteria of real-estate taxes, which caused some areas in the Northeast, Midwest and Texas with higher property taxes to fall in the rankings.

The strengthening U.S. economy also played a role, rewarding cities where employment and wages grew the most. Rapid City and Raleigh each jumped by about 100 spots from the previous quarter.

Billings is the biggest city in Montana, with a metro-area population of about 184,000.

Billings, the biggest city in Montana, rose from the fourth spot to the first due to its low unemployment, affordability and booming housing market. With a metro-area population of about 184,000, Billings had a 3% unemployment rate in May, or about half the national rate.

Much of the strength in the Billings housing market has been driven by out-of-state buyers—from coastal states like California and Washington to Kentucky and Texas, said Deb Parker, broker owner of Parker & Co. Real Estate Services in Billings. Many move to the area because they have the flexibility to work remotely, she said.

“I believe Montana’s truly been discovered,” Ms. Parker said. “I’ve never seen so much cash in our market.”

About 65% of page views on Billings property listings came from outside the metro area in the second quarter, up from about 57% a year earlier, according to Realtor.com.

News Corp,

parent of The Wall Street Journal, operates Realtor.com.

Billings, surrounded by multiple mountain ranges, was founded as a 19th-century railroad town. Today, new residents are drawn to the area’s hiking trails and other outdoor activities. Yet unlike some smaller U.S. cities, where second-home buyers have played a notable role moving in and boosting housing prices, about 3% of Billings homes are vacation properties, according to Realtor.com.

Like much of the West, Billings is currently experiencing extreme heat. The National Weather Service has issued a red-flag warning in the area, which indicates weather conditions that could accelerate the spread of wildfires.

Emily and Travis Elwood decided during the pandemic that they wanted to move out of Portland, Ore., where they were renting a two-bedroom apartment. They visited Billings last summer and were attracted to its size and affordability. “Frankly, [we] were never going to be able to buy a home in the Portland area,” Ms. Elwood said. “We just wanted something a little bit smaller, a little bit tighter knit.”

Ms. Elwood continued working at her Oregon job from Montana, and Mr. Elwood found a new job in Billings at a dental company. They moved in October and bought a three-bedroom house in June for $316,000. Their monthly mortgage payment is lower than their monthly rent was in Portland, Ms. Elwood said.

Smaller markets in Montana, including Bozeman, also saw an influx of buyers during the pandemic. Some of the top reasons out-of-state buyers chose Montana were safety and security, concerns about Covid-19 and the state’s smaller population, according to a survey of Montana real-estate agents by Montana State University Billings last summer.

The U.S. mortgage market involves some key players that play important roles in the process. Here’s what investors should understand and what risks they take when investing in the industry. WSJ’s Telis Demos explains. Photo: Martin Barraud/Getty Images

The average single-family home-sale price in Billings and the surrounding area was $376,248 in June, up 32% from a year earlier, according to the Billings Association of Realtors.

As in many markets around the country, the number of homes for sale is very low. There were 392 single-family listings in the Billings area in June, down from 433 a year earlier, the association said.

“There was not a lot out there,” said Claire Alden, who started house shopping in Billings with her husband, Deaver Alden, this spring. “There was only one or two on the market at a time that we would consider at all.”

After the Aldens put in their first offer on a house, they found out the seller had already accepted a cash offer the same day the house went on the market. They ended up buying a four-bedroom house in June with a shed in the back that they are considering converting into a rental property.

The Wall Street Journal/Realtor.com Emerging Housing Markets Index ranks the 300 biggest metro areas in the U.S. In addition to housing-market indicators, the index incorporates economic and lifestyle data, including unemployment rate, wages, commute time and small-business loans.

Home prices in the top 20 markets in the index have risen 13.7% on average in the past year, outpacing an 8% rise for all 300 areas, but the top 20 areas still had a lower median listing price than the market overall, said

Danielle Hale,

chief economist at Realtor.com.

New residents are drawn to Billings by its hiking trails and other outdoor activities.

RANK CHANGE AREA STATE
1 Billings MT
2 Coeur D’Alene ID
3 Fort Wayne IN
4 Rapid City SD
5 Raleigh NC
6 Portland-South Portland ME
7 Waco TX
8 Johnson City TN
9 Bangor ME
10 Huntsville AL
11 Topeka KS
12 Jefferson City MO
13 Elkhart-Goshen IN
14 Colorado Springs CO
15 Eureka-Arcata-Fortuna CA
16 Springfield OH
17 Manchester-Nashua NH
18 Concord NH
19 Burlington NC
20 Elizabethtown-Fort Knox KY
21 Lafayette-West Lafayette IN
22 Durham-Chapel Hill NC
23 Yuma AZ
24 Visalia-Porterville CA
25 Crestview-Fort Walton Beach-Destin FL
26 Vallejo-Fairfield CA
27 Pensacola-Ferry Pass-Brent FL
28 Spokane-Spokane Valley WA
29 Yuba City CA
30 Fresno CA
31 Saginaw MI
32 Burlington-South Burlington VT
33 Columbus OH
34 Kennewick-Richland WA
35 Austin-Round Rock TX
36 Kingsport-Bristol-Bristol TN-VA
37 Decatur AL
38 Worcester MA-CT
39 Grand Junction CO
40 Columbia SC
41 Canton-Massillon OH
42 Columbia MO
43 Prescott AZ
44 Rochester NY
45 Santa Cruz-Watsonville CA
46 Boulder CO
47 Monroe MI
48 Springfield MA
49 Reno NV
50 Akron OH
51 Louisville/Jefferson County KY-IN
52 Charlotte-Concord-Gastonia NC-SC
53 San Luis Obispo-Paso Robles-Arroyo Grande CA
54 Appleton WI
55 Pueblo CO
56 South Bend-Mishawaka IN-MI
57 Dayton OH
58 Evansville IN-KY
59 Sacramento-Roseville-Arden-Arcade CA
60 North Port-Sarasota-Bradenton FL
61 Yakima WA
62 Nashville-Davidson-Murfreesboro-Franklin TN
63 Knoxville TN
64 Salinas CA
65 Tampa-St. Petersburg-Clearwater FL
66 Stockton-Lodi CA
67 Boise City ID
68 Fort Collins CO
69 Salt Lake City UT
70 Oshkosh-Neenah WI
71 Ogden-Clearfield UT
72 Merced CA
73 Hartford-West Hartford-East Hartford CT
74 Providence-Warwick RI-MA
75 La Crosse-Onalaska WI-MN
76 Blacksburg-Christiansburg-Radford VA
77 Hilton Head Island-Bluffton-Beaufort SC
78 Modesto CA
79 San Jose-Sunnyvale-Santa Clara CA
80 Norwich-New London CT
81 Provo-Orem UT
82 Janesville-Beloit WI
83 Gainesville GA
84 Charleston-North Charleston SC
85 Clarksville TN-KY
86 Springfield MO
87 NONE Bend-Redmond OR
88 Denver-Aurora-Lakewood CO
89 Lubbock TX
90 Fayetteville-Springdale-Rogers AR-MO
91 Tyler TX
92 Chattanooga TN-GA
93 Barnstable Town MA
94 Dothan AL
95 Pottsville PA
96 Traverse City MI
97 Wilmington NC
98 Rocky Mount NC
99 Joplin MO
100 Little Rock-North Little Rock-Conway AR
101 Salem OR
102 Killeen-Temple TX
103 Allentown-Bethlehem-Easton PA-NJ
104 New Haven-Milford CT
105 Lebanon PA
106 Bakersfield CA
107 Scranton-Wilkes-Barre-Hazleton PA
108 Duluth MN-WI
109 Grand Rapids-Wyoming MI
110 Naples-Immokalee-Marco Island FL
111 Palm Bay-Melbourne-Titusville FL
112 Las Vegas-Henderson-Paradise NV
113 Lakeland-Winter Haven FL
114 Madison WI
115 Fort Smith AR-OK
116 Boston-Cambridge-Newton MA-NH
117 Santa Maria-Santa Barbara CA
118 Sioux City IA-NE-SD
119 Deltona-Daytona Beach-Ormond Beach FL
120 Youngstown-Warren-Boardman OH-PA
121 Olympia-Tumwater WA
122 Homosassa Springs FL
123 Buffalo-Cheektowaga-Niagara Falls NY
124 Toledo OH
125 Phoenix-Mesa-Scottsdale AZ
126 Racine WI
127 Panama City FL
128 Eugene OR
129 Erie PA
130 Dallas-Fort Worth-Arlington TX
131 Orlando-Kissimmee-Sanford FL
132 Rockford IL
133 Greenville NC
134 Longview TX
135 Greensboro-High Point NC
136 Bremerton-Silverdale WA
137 Redding CA
138 Sebastian-Vero Beach FL
139 Asheville NC
140 Greeley CO
141 Santa Rosa CA
142 Ann Arbor MI
143 St. Cloud MN
144 Lake Havasu City-Kingman AZ
145 Amarillo TX
146 Green Bay WI
147 Fayetteville NC
148 Seattle-Tacoma-Bellevue WA
149 Mobile AL
150 Punta Gorda FL
151 Wichita Falls TX
152 Athens-Clarke County GA
153 Detroit-Warren-Dearborn MI
154 Spartanburg SC
155 Warner Robins GA
156 Claremont-Lebanon NH-VT
157 Niles-Benton Harbor MI
158 Abilene TX
159 Terre Haute IN
160 Chico CA
161 The Villages FL
162 Hickory-Lenoir-Morganton NC
163 Cape Coral-Fort Myers FL
164 Cincinnati OH-KY-IN
165 Memphis TN-MS-AR
166 Lansing-East Lansing MI
167 Lynchburg VA
168 Jacksonville NC
169 Portland-Vancouver-Hillsboro OR-WA
170 Port St. Lucie FL
171 Bloomington IN
172 Morgantown WV
173 Bellingham WA
174 Reading PA
175 Bismarck ND
176 Winston-Salem NC
177 Indianapolis-Carmel-Anderson IN
178 Battle Creek MI
179 Myrtle Beach-Conway-North Myrtle Beach SC-NC
180 Milwaukee-Waukesha-West Allis WI
181 Hattiesburg MS
182 Greenville-Anderson-Mauldin SC
183 Kalamazoo-Portage MI
184 San Francisco-Oakland-Hayward CA
185 Bowling Green KY
186 Auburn-Opelika AL
187 State College PA
188 Johnstown PA
189 Lancaster PA
190 Harrisburg-Carlisle PA
191 Anchorage AK
192 Columbus GA-AL
193 Lake Charles LA
194 Cleveland-Elyria OH
195 Daphne-Fairhope-Foley AL
196 Tucson AZ
197 NONE Santa Fe NM
198 Dover DE
199 Florence-Muscle Shoals AL
200 Hagerstown-Martinsburg MD-WV
201 Fargo ND-MN
202 Oxnard-Thousand Oaks-Ventura CA
203 Jacksonville FL
204 Albuquerque NM
205 Flint MI
206 Virginia Beach-Norfolk-Newport News VA-NC
207 Cedar Rapids IA
208 Roanoke VA
209 Riverside-San Bernardino-Ontario CA
210 Salisbury MD-DE
211 Savannah GA
212 Wichita KS
213 Minneapolis-St. Paul-Bloomington MN-WI
214 Texarkana TX-AR
215 Atlanta-Sandy Springs-Roswell GA
216 Muskegon MI
217 Jackson MI
218 Richmond VA
219 Omaha-Council Bluffs NE-IA
220 Kahului-Wailuku-Lahaina HI
221 Wausau WI
222 Augusta-Richmond County GA-SC
223 Sioux Falls SD
224 Gainesville FL
225 Waterloo-Cedar Falls IA
226 Medford OR
227 Pittsfield MA
228 Birmingham-Hoover AL
229 Washington-Arlington-Alexandria DC-VA-MD-WV
230 San Antonio-New Braunfels TX
231 Bridgeport-Stamford-Norwalk CT
232 San Diego-Carlsbad CA
233 Brownsville-Harlingen TX
234 Chambersburg-Waynesboro PA
235 Torrington CT
236 Binghamton NY
237 College Station-Bryan TX
238 New Orleans-Metairie LA
239 Wheeling WV-OH
240 York-Hanover PA
241 Oklahoma City OK
242 Baltimore-Columbia-Towson MD
243 Eau Claire WI
244 Kansas City MO-KS
245 Hilo HI
246 Lexington-Fayette KY
247 Tupelo MS
248 East Stroudsburg PA
249 Syracuse NY
250 Tallahassee FL
251 Gulfport-Biloxi-Pascagoula MS
252 Monroe LA
253 Trenton NJ
254 Charlottesville VA
255 Macon GA
256 Tulsa OK
257 Pittsburgh PA
258 Tuscaloosa AL
259 Rochester MN
260 Las Cruces NM
261 Huntington-Ashland WV-KY-OH
262 Philadelphia-Camden-Wilmington PA-NJ-DE-MD
263 Ottawa-Peru IL
264 Montgomery AL
265 Jackson MS
266 El Paso TX
267 Charleston WV
268 Houston-The Woodlands-Sugar Land TX
269 Lafayette LA
270 Chicago-Naperville-Elgin IL-IN-WI
271 St. Louis MO-IL
272 Des Moines-West Des Moines IA
273 Florence SC
274 Alexandria LA
275 Los Angeles-Long Beach-Anaheim CA
276 Champaign-Urbana IL
277 Corpus Christi TX
278 Iowa City IA
279 Laredo TX
280 Bloomington IL
281 Miami-Fort Lauderdale-West Palm Beach FL
282 Albany GA
283 Lincoln NE
284 Baton Rouge LA
285 Peoria IL
286 Mcallen-Edinburg-Mission TX
287 Albany-Schenectady-Troy NY
288 Midland TX
289 Urban Honolulu HI
290 Atlantic City-Hammonton NJ
291 Houma-Thibodaux LA
292 Shreveport-Bossier City LA
293 Beaumont-Port Arthur TX
294 Ocala FL
295 Utica-Rome NY
296 Springfield IL
297 Davenport-Moline-Rock Island IA-IL
298 Kingston NY
299 NONE New York-Newark-Jersey City NY-NJ-PA
300 NONE Odessa TX

Write to Nicole Friedman at nicole.friedman@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Belarus officials removed from Tokyo Olympics after trying to send sprinter home – National

Two Belarus Olympic officials involved in attempting to send sprinter Krystsina Tsimanouskaya home from the Tokyo Olympics have had their Games accreditation revoked and have been...

Business Groups Call on Biden to Restart Trade Talks With China

WASHINGTON—Nearly three dozen of the nation’s most influential business groups—representing retailers, chip makers, farmers and...

Canada’s Evan Dunfee nabs bronze in men’s 50km race walk at Tokyo Olympics – National

Canada’s Evan Dunfee nabbed the bronze medal in a surprise finish in the 50-kilometre race walk at the Tokyo Olympics Friday. Dunfee overtook Spain’s Marc...

California to mandate COVID-19 vaccines for health workers

SACRAMENTO, Calif. (AP) —...

Andrew Scherr, Former Executive With Collapsed Insurers, Receives Five-Year Prison Sentence

A former executive of a group of collapsed insurers was sentenced to five years in...