June 15th, 2009 5:15 PM by Heather Brown
Austin Ranks #1 on Forbes Best Cities for Recession Recovery! According to the Forbes Article; the three most important things in real estate: Location, Location, Location. It's true for recovery from a real estate bubble too. Overall, many economists expect the national economy to return to growth later in 2009, perhaps as soon as this summer. But that won't be the case everywhere. While some cities are poised for a quick rebound, others face a slow recovery that could take years.
Poised for swift recovery are many Texas cities such as Austin, San Antonio, Dallas and McAllen. These areas did not see the massive real estate bubble that formed in states like California, Nevada and Florida. The economy is diverse, with heavy growth coming from education and health care in recent years.
Many of the cities with the longest road to recovery are California cities, where home prices rocketed out of control, and entire economies were supported largely by a real estate bubble. Many California cities saw home prices soar to unsustainable levels and then begin their inevitable plunge. The collapse of the housing markets pushed unemployment rates in these cities above 10%. Even as a flood of foreclosures makes home prices look affordable again, a sign that some of the worst real estate markets may be finding their bottom, it will still take years for unemployment rates as high as 16.8% in Modesto or 15.5% in Fresno to return to healthy levels.
To find the 10 cities that looked best poised for recovery (and the 10 cities likely looking at the slowest recovery), Forbes examined estimates from data provider Moody's Economy.com of the projected gross domestic product of metropolitan areas across the U.S, as well as unemployment figures from the Bureau of Labor Statistics and home prices, incomes and affordability data from the National Association of Home Builders. Because, in general, healthy cities were not victims of as severe a housing collapse, home prices were not used in ranking the cities poised for recovery.
Ranked #1 Austin-Round Rock, Texas
Current GDP: $72.4 Billion
End of 2010: $77.7 Billion (projected)
From now to the end of 2010, the economy of Austin is projected to grow by $5 billion, and unemployment has stayed relatively subdued. The city's diverse economy, home to Dell, the University of Texas and the Texas state government, has kept the economy strong. Forbes.com also recently ranked Austin the Best Big City for Jobs.
#2 on the list was Fayetteville - Springdale-Rogers, Ark.
Current GDP: $13.9 Billion
End of 2010: $14.5 Billion (projected)
#3 Boulder, Colo.
Current GDP: $15.6 Billion
End of 2010: $16.3 Billion (projected)
#4 Huntsville, Ala.
Current GDP: $16.1 Billion
End of 2010: $17.2 Billion (projected)
#5 San Antonio, Texas
Current GDP: $66.3 Billion
End of 2010: $68.4 Billion (projected)
Austin is a Great Place to Be!!!
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