While some housing markets have cooled off due to a combination of state policies, slow or negative job growth and stagnant local economies, a few states are reaping the lion’s share of the increasing demand for national housing. In fact, the last few years have marked the first time since 2006 that the average housing prices across the country as a whole have set records. But these gains have been distributed unequally, and that trend is likely to continue. Here are three states where housing prices are likely to continue experiencing strong gains.
Nevada isn’t just the gambling capital of the world; It’s also one of the states with the lowest overall tax rates and the most favorable laws towards business. These facts have continued to attract new residents in droves, driving the housing prices of the state up by a factor of nearly 3 since 2012. While buying a home or piece of commercial real estate is always a bit of a gamble, doing so in Nevada has been a bet that has paid off handsomely.
The Lone Star State has one of the fastest-growing economies not just in the United States but in the world. Cities like Houston and Austin have experienced growth in their respective populations that place them among the fastest-growing cities in the country. And the characteristic intrastate migrants that Texas has been receiving tend to be high-earning and highly educated. With some of the lowest taxes and one of the most pro-business environments of any U.S. state, Texas has seen a massive influx of tax refugees from states like Illinois, Connecticut and California.
At one time, Florida may have had the reputation of being the poor man’s California. Today, Florida is one of the most popular destinations for those fleeing the Golden State. With zero personal income tax, idyllic year-round weather and, perhaps, the easiest access to beachfront and water-based recreation of any state in the country, Florida continues to be a prime destination for retirees, business owners and just about anyone else who seeks fun and sun without the stifling taxes, regulation and congestion of California.