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Emerging housing markets keep pace in 2015

RACHEL BARRON
USA TODAY Home
Over the last year, according to the Bureau of Labor Statistics, employment in Houston rose 4.3 percent.

Industry experts say emerging housing markets are positioned to compete with major markets such as New York, Boston and Washington in 2015. With lower costs of living and better-than-average employment opportunities, these up-and-coming cities may be just the place to call home.

1. Houston

The fourth-most populous city in the country, Houston earned the No. 1 spot in the 2015 U.S. Markets to Watch list, part of a comprehensive industry report, "Emerging Trends in Real Estate," prepared by the Urban Land Institute (ULI) and PriceWaterhouseCoopers (PwC).

The pick demonstrates the resilience of the Texas economy, says Jed Kolko, chief economist for real estate website Trulia. Texas, he says, was lucky enough to avoid a lot of the pain from the housing bust. "It is less hungover than other markets," he explains.

According to the report, Houston has an employment concentration in technology and energy that is greater than the national average, and investors see this as an opportunity for growth. Over the last year, according to the Bureau of Labor Statistics, employment in Houston rose 4.3 percent, whereas employment in the country overall rose 2 percent.

The more jobs, the better the prospects for young people looking to start careers. And with an award-winning restaurant scene, vibrant arts and plenty of park space, the city has a lot to offer.

2. Austin

This quirky, cosmopolitan city with a robust art and live music scene came in second on the U.S. Markets to Watch list. The high-tech industry is booming (Dropbox, IBM and Oracle announced major expansions in the last year), and the metro area has considerable job growth prospects.

The Texas capital saw significant urban growth (8.6 percent) over the last year, according to the ULI and PwC report. "Survey respondents and interviewees like the industrial base, the appeal to the millennial generation and the lower cost of doing business in Austin," the report says.

A strong technology market, San Francisco entices investors with its urban core and millennial population.

3. San Francisco

The perennial top market fell to a No. 3 spot in the 2015 list. The decline "is likely due more to growth in the other cities than any identifiable flaw in the San Francisco market," the report says. In fact, Northern California continues to be well-represented; Oakland and San Jose also make appearances in the top 20.

4. Denver

The Mile High City comes in at No. 4 on the Markets to Watch list. Located within a two-hour drive of great ski resorts, Denver booms with history, culture and plenty of outdoor activities.

Despite a forecasted cooling-off period for multifamily housing, Denver is expected to remain strong on the single-family housing front, especially as the city's 250,000 millennials age.

5. Dallas/Fort Worth

Dallas has perks: It's home to the country's largest urban arts district - 19 contiguous blocks of museums, performing arts venues and restaurants — as well as "America's team," the Cowboys. But it's the low cost of living and doing business that earned the city the No. 5 position.

Employment is high in the technology and energy industries, and expansion in these sectors drives economic growth.

Find more great articles on home trends and decor in Home magazine, on newsstands now through May 23.
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