Posted in Industry News
Homebuyers Predicted to Gravitate to Second Tier Cities
According to a recent trend piece published by Fast Company, in the coming years more people are predicted to gravitate toward smaller market cities, often referred to as “second tier” cities. In the past few decades, advancements in connective technologies like Skype, Google Hangouts and DropBox have allowed people to develop businesses in second tier cities. It’s predicted that cities like Charlotte, Houston, and Denver will continue to attract strong talent that would have previously only found work in major metropolises like New York City and Los Angeles.
A similar prediction coming from Realtor.com showed that more Millennials are turning away from big cities with sky-high real estate prices and purchasing homes in more affordable second tier cities. The 2016 Realtor.com forecast predicts that the top three cities for Millennial homebuyers will be Atlanta, Pittsburgh, and Memphis. With Millennials making up 30% of all U.S. homebuyers, this new shift toward second tier cities will have a great impact on the housing market.
So what does that mean for the construction industry? With more homebuyers gravitating toward second tier cities for career opportunities and affordable real estate, these areas will be the hot markets for new construction. Many second tier cities are already seeing major growth, and as these predictions show, this trend does not seem to be fading anytime soon. To help ensure that builders in second tier cities are well equipped for the building demands that come along with a population influx, LP will continue its commitment to supplying these regions with the highest quality engineered wood products.
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