Local Market Monitor, a North Carolina firm that provides investors with analysis on local conditions, has named Cincinnati to its "Most Undervalued Cities List." Interestingly, we are one of five Ohio cities on the list of 15 that are undervalued.
The company looks at economic and population growth, construction costs, vacancies, household income and interest rates. Employment and job sector growth figure into the equation heavily. They also evaluate metropolitan areas where buyers would tend to pay more for homes because it is considered a more desirable location. San Diego, because of weather and ocean-side location, would have such a buyer's premium.
Two cities received their worst possible rating, "Frankly Dangerous". Those were Las Vegas (home prices down 52%) and Orlando (home prices down 39%). The other eight overpriced markets were Anaheim, San Jose, New York City, Suffolk-Norfolk (Long Island), NY; Los Angeles, Portland, Edison, NY; and Poughkeepsie NY.
Las Vegas is undervalued by 28% and the most undervalued market, but bad news on its employment picture and overbuilding causes it to be rated as the worst market.
Cincinnati has been undervalued by 15%, but our employment expectations and mix of job concentration ranks it as as a good value, with prices undervalued. Good news for us!
So, let's get the housing market going!