Housing Markets Continue to Show Gradual Improvement

Washington, DC, August 7, 2015—Markets in 75 of the approximately 360 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the second quarter of 2015, according to the National Association of Home Builders/First American Leading Markets Index (LMI) released today.

This represents a year-over-year net gain of 13 markets.

The index’s nationwide score edged up to .92, meaning that based on current permit, price and employment data, the nationwide average is running at 92% of normal economic and housing activity. Meanwhile, 66% of markets have shown an improvement year-over-year.

“Of the three elements in the LMI (house prices, permits and employment), house prices have had the broadest recovery, with 345 markets returning to or exceeding their last normal level,” said NAHB Chief Economist David Crowe. “Meanwhile, 64 markets have met or exceeded their normal employment levels. The housing permit level has made the least progress toward normality, with only 26 markets at or above their last normal level.”

Baton Rouge, Louisiana continues to top the list of major metros on the LMI, with a score of 1.47 or 47% better than its last normal market level. Other major metros leading the list include Austin, Texas; Honolulu, Hawaii; Houston, Texas; and Oklahoma City, Oklahoma. Rounding out the top ten are San Jose, California; Los Angeles, California; Charleston, South Carolina; Salt Lake City, Utah; and Nashville, Tennessee.

Looking at smaller metros, both Midland and Odessa, Texas, have LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Manhattan, Kansas; Grand Forks, North Dakota.; and Casper, Wyoming, respectively.