Number 4: Indianapolis, Indiana
Average Listing Price: $61,000
Unemployment: 8.2% (April 2011)
Median household income: $23,049
With a population growth of 15.2% from 2000 to 2010 compared to the national average of 9.7%, Indianapolis is a city on the move. With the city offering large performance-based tax credits to growing business creating jobs, as well as investing in city infrastructure and improvements, Indianapolis is seeing a large economic development and strong job growth.
Foreclosure rates in the area remain stubbornly higher than the national average, but delinquency rates are in decline indicating the drop of foreclosures in the near future.
Number 3: Stockton, California
Average Listing Price: $123,000
Unemployment: 16.7% (June 2011)
Median household income: $45,730
Local housing prices have dropped 57% since the housing market bubble, allowing single-family homes and investment properties to become more affordable.
Rents are also set to go up 11% over the next three years with a demand in rentals increasing as the foreclosure and housing market continues to drop.
Number 2: Las Vegas, Nevada
Average Listing Price: $374,000
Unemployment: 13.8% (June 2011)
Median household income: $53,000
With the highest foreclosure rate in the nation, many former homeowners have now become renters. With a large casino workforce who rent and cannot afford mortgage payments the home-ownership rate is one of the lowest in the country at 55%.
Unemployment has grown and rents have decreased about 10% since 2007, but rents are expected to rise and residential investment is predicted to yield at 4.7% above the national average.
Number 1: Phoenix, Arizona
Average Listing Price: $123,500
Unemployment: 9% (June 2011)
Median household income: $22,209
Home prices soared by double digits annually over three years, until they crashed in 2007, falling 47% since. The foreclosure market is widespread, pushing families out of their homes and into rental properties. Rents are increasing at an alarming rate. Estimated at $100 a month increase over the next three years.
The job market is slowly improving and unemployment still remains below the national average.