The online real estate database Zillow crunched numbers for job and wage growth alongside housing costs in the first quarter of 2015 to land on a “sweet spot” of affordable homes and healthy local economies.
“With affordability continuing to erode and employment growth slowing in many energy-producing states, the number of ‘sweet spots’ with both strong labor markets and cheap housing is shrinking,” said Svenja Gudell, senior director of economic research at Zillow. “Even as the job market improves, absent strong, sustained income growth, more and more cities will move toward the upper right of the chart—having good employment but also pricey housing.”
The latest analysis shows some movement from the end of 2014.
For example, Houston and Dallas are edging out of the sweet-spot quadrant as affordability slips and employment growth slows. That’s likely a reflection of tumbling oil prices, which have forced many energy companies to curtail investment and lay off workers.
Strong job creation in Atlanta, by contrast, is pushing that city deeper into Zillow’s sweet spot.
And if you’re looking for someplace a little cozier, Zillow found some mid-sized towns that appear to balance affordability and employment growth, including Greely, Co., Longview, Wash., and Provo, Utah.
And once again, Atlantic City is a bad bet.
The Wall Street Journal