Millennials Impact on Urban Revival; Pro Teck's HVF Takes a Deeper Dive into Minneapolis and Boston

WALTHAM, Mass., June 1, 2015 /PRNewswire/ -- Pro Teck Valuation Services' Home Value Forecast (HVF) May update examines whether Millennials (or Generation Y) are helping inner cities experience a rebirth.  Also, HVF's top and bottom market rankings for the month are updated.   

The HVF authors examined data by the American Institute for Economic Research (AIER), which ranked destination cities both by the amenities important to Millennials and job prospects.  Two of the top ten cities were Minneapolis-St. Paul, Minnesota and Boston, MA.  The authors combined data from Home Value Forecast to better understand the impact millennials are having on these representative markets.  

Examining the Millennials' impact, the authors researched two representative ZIP codes: Lyn-Lake area of Minneapolis (55408) and South Boston (02127). The Lyn-Lake area of Minneapolis is a vibrant community that embarked on a strategic plan to further engage residents and businesses.  South Boston also has seen a transformation over the last few years into a thriving live-play-work space.  The authors found both urban areas, whose populations are dominated by millennials, have weathered the housing crash well and are at all-time highs.

"While Millennials' impact can be seen, the rehabilitation of America's inner cities does not happen with a broad brush," said Tom O'Grady, CEO of Pro Teck Valuation Services.  "Change comes one building, then one neighborhood, then one ZIP code at a time."

The HVF authors said that metros at differing points in their economic restructuring have different affordability.  They added that companies are looking at affordability and moving to where there is a large percentage of the population with a bachelor's degree or higher. 

In addition to Boston and Minneapolis, Austin, Denver, New York City, San Francisco, San Jose, Seattle, and Washington, DC are all referenced in the AIER research and also have been ranked as the most highly educated metros.  Interestingly, Denver, San Francisco, San Jose, and Seattle also are listed the HVF top 10 metro ranking this month. 

"Educated Millennials are gravitating to cities and we believe this is creating an urban revival in many key metros across the country," added O'Grady.   

This month's Home Value Forecast update also includes a listing of the 10 best and 10 worst performing metros as ranked by its market condition ranking model.  The rankings are run for the single-family home markets in the top 200 CBSAs on a monthly basis.  They highlight the best and worst metros with regard to a number of leading real estate market indicators including: sales/listing activity and prices, months of remaining inventory (MRI), days on market (DOM), sold-to-list price ratio and foreclosure percentage and REO activity.

"Seattle joins Bellingham, WA in the top ten this month.  Denver, Phoenix and Reno also are in the ranks of the top ten, which have been dominated by California metros such as San Jose, San Francisco and Oakland-Hayward-Berkeley," added O'Grady. "All of the metro areas in the top ten have less than 5 months of remaining inventory with San Francisco having less than 2 months.  Also, the foreclosure percentage of sales is well below 10 percent in every market."

April's top CBSAs include:

Seattle-Bellevue-Everett, WA
Denver-Aurora-Lakewood, CO
San Jose-Sunnyvale-Santa Clara, CA
Santa Cruz-Watsonville, CA
Vallejo-Fairfield, CA
Bellingham, WA
Phoenix-Mesa-Scottsdale, AZ
San Francisco-Redwood City-South San Francisco, CA
Oakland-Hayward-Berkeley, CA
Reno, NV

"This month's bottom ten include several new markets, including Kansas City, KS-MO, Elgin, IL and Memphis, TN-MS-AR, which are plagued by larger foreclosure sales percentages and higher months of remaining inventory," said O'Grady.  "Interestingly, there are only three Florida markets in the bottom ten this month and all three appear to have improvements in active home price percentages."

The bottom CBSAs for April were:   

Baltimore-Columbia-Towson, MD
Deltona-Daytona Beach-Ormond Beach, FL
Elgin, IL
Fort Lauderdale-Pompano Beach-Deerfield, FL
Gary, IN
Kansas City, MO-KS
Lake County-Kenosha County, IL-WI
Lakeland-Winter Haven, FL
Memphis, TN-MS-AR
Rockford, IL

About Home Value Forecast

Home Value Forecast (HVF) is brought to you by Pro Teck Valuation Services.  HVF provides insight into the current and future state of the U.S. housing market, and delivers 14 market snapshot graphs from the top 30 CBSAs.

HVF is built using numerous housing and economic data sources.  The top 750 CBSAs as well as data down to the ZIP code level for approximately 18,000 ZIPs are available with a corporate subscription to the service.  To learn more about Home Value Forecast and Pro Teck's full suite of residential real estate valuation products, visit www.proteckservices.com.  You can also find Pro Teck on Twitter at @ProTeckServices.

Reporters interested in national, regional or metro level housing data tailored to meet story needs, please email your inquiry to [email protected].

Editor's Note:

A Core Based Statistical Area (CBSA) is a U.S. geographic area defined by the Office of Management and Budget (OMB) based around an urban center of at least 10,000 people and adjacent areas that are socioeconomically tied to the urban center by commuting.  The term "CBSA" refers collectively to both Metropolitan Statistical Areas (MSA) and micropolitan areas.  Micropolitan areas are based around Census Bureau-defined urban clusters of at least 10,000 and fewer than 50,000 people. Metropolitan Statistical Areas (MSAs) are defined as urban clusters of more than 50,000 people.

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SOURCE Pro Teck Valuation Services

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