Home prices in these 10 cities will appreciate handsomely over the next decade.
With home prices at the national level down a painful 32 percent from their 2006 peaks, it’s easy to overlook real estate’s benefits as a long-term investment. But the truth is, despite the ongoing housing bust, the overwhelming majority of America’s real estate markets will appreciate over the next 10 years-although some more handsomely than others. “In the long run-subtracting from the ups and downs of the business cycle-house prices should grow at the rate of household income,” says Mark Zandi, chief economist at Moody’s economy.com. “If people’s incomes are rising, then they will buy more housing and house prices will rise.” Income growth, in turn, is linked to the strength of the area’s economy. Moody’s Economy.com sifted through employment and population data and analyzed geographic and industry trends to generate 10-year home price projections for each of the nation’s 384 distinct metropolitan statistical areas-everywhere from Abilene, Texas, to Yuma, Ariz. Using these data, U.S. News compiled a list of the top 10 housing markets for the next 10 years.
