Tech hubs lead US housing rebound
Markets with strong pre-pandemic job creation appear to be bouncing back quicker, experts say
Cities with large technology sectors appear to be leading the U.S. housing recovery, according to new data released by Realtor.com.
The company’s Weekly Housing Recovery Report, which contains data for the week ending June 13, showed that local markets with strong pre-pandemic job creation – specifically in the technology sector – are bouncing back quicker than other markets.
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"Markets with stronger job creation pre-COVID are proving to have the crucial edge for real estate activity, particularly those with a strong technology sector," Javier Vivas, director of economic research for Realtor.com, said in a statement. "As more tech companies weather the storm, the stable jobs and incomes they offer will continue to power demand for homes in these areas, enabling home sales to bounce back faster than the rest of the country this summer."
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The five cities that are now "leading" the recovery are Denver, Boston, Seattle, San Francisco and San Diego.
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Overall, the report showed that the U.S. housing market has recovered nearly halfway to its January 2020 level. Median price listings are growing at a slighter faster pace – 4.6 percent – than they were pre-coronavirus.
However, sellers still appear reluctant to list, which is creating some headaches for potential buyers. Listings are down 20 percent year over year, while total inventory is down 27 percent.
As previously reported by FOX Business, a housing shortage has recently led to an uptick in bidding wars among interested individuals.