If you own a home, deciding to sell and move to a new place is never easy, but knowing you’re leaving behind an expensive housing market and a lackluster local economy can make it easier. In fact, high housing costs and real estate taxes combined with slow long-term economic and job growth might be just the motivation you need to put up the “For Sale” sign and relocate.
If you’re considering a move — whether for a new job, to retire or just to get a fresh start — you first should find out whether you’re in a market ripe for selling. We’ve done the homework for you with our list of the Top 12 Places to Sell a Home. We analyzed:
- The cost premium of owning a home, as measured by the ratio of the local median home value to the local median income. The higher the number, the less affordable homes are. Comparing the price of a home to the buyer’s annual income is a common way to determine affordability. Exact recommendations vary, but a home that costs about three times the buyer’s annual income generally is considered affordable.
- Real estate taxes, as measured in real estate taxes paid per capita. Higher real estate taxes make owning a home more expensive.
- Recent price increases, as measured by the percent change in median sales price from 2012 to 2014. If prices have risen substantially recently, it might be worth holding on to a property, at least for a little while, because that trend could continue.
- Long-term economic growth, in terms of the compound annual growth rate (CAGR) in inflation-adjusted GDP from 2003 to 2013.
- Long-term job growth, in terms of the CAGR in the total number of jobs from 2003 to 2013. Slow economic and job growth over the long term, especially in combination with high costs to own, probably aren’t sustainable and could indicate it’s a good time to sell.
We looked at this data for the 60 largest U.S. metro areas. High cost premiums and real estate taxes indicate expensive locations. Big increases in recent home prices indicate it’s worth waiting to sell. Low long-term economic and job-growth numbers don’t guarantee prices eventually will fall, but they do make that scenario more likely.
Once the home is sold, where to next? There are many places in the U.S. with affordable housing and growing economies. Find out where they are thanks to our list of the 12 Best Places to Buy a Home.
Here are the 12 Best Places to Sell a Home.
1. Bridgeport, CT
About 60 miles northeast of Manhattan, NY, Bridgeport is home to the first Subway restaurant. It’s also home to the highest real estate taxes paid per capita among the Top 12, along with a high — but not astronomical — cost premium. Recent price increases also are low, meaning that hanging onto a home probably won’t result in big gains.
Metro population: 945,438
Cost premium: 5.1
Real estate taxes paid per capita: $1,885
Recent price increases: 1.8%
Long-term annual economic growth: 1.1%
Long-term annual job growth: 0.9%
2. New York City, NY
New Yorkers face a higher cost premium than their neighbors in Bridgeport, but real estate taxes paid per capita are lower. Although the New York economy hasn’t grown especially fast over the past decade, it’s grown faster than Bridgeport’s has.
Metro population: 20,092,883
Cost premium: 6
Real estate taxes paid per capita: $1,342
Recent price increases: 4.4 percent
Long-term annual economic growth: 1.4%
Long-term annual job growth: 1.1%
3. Providence, RI
Providence beats both Bridgeport and New York in terms of recent price increases, which could indicate it’s better to hold than sell. However, the long-term economic and job growth numbers are weak, and that means the grass is greener, at least economically, in other places.
Metro population: 1,609,367
Cost premium: 4.5
Real estate taxes paid per capita: $912
Recent price increases: 11.2%
Long-term annual economic growth: 0.5%
Long-term annual job growth: 0.1%
4. New Orleans, LA
The Crescent City is the only place in the Top 12 where the economy shrank and job numbers fell over the past decade, thanks in large part to Hurricane Katrina. However, homes here are less expensive than in the Top 3, and real estate taxes are lower than in all but one other place in the Top 12.
Metro population: 1,251,849
Cost premium: 3.7
Real estate taxes paid per capita: $313
Recent price increases: 5.6%
Long-term annual economic growth: -0.3%
Long-term annual job growth: -0.3%
5. Honolulu, HI
Residents in Honolulu might pay the lowest real estate taxes per capita in the Top 12, but they also face the highest cost premium. Median-price homes here cost almost eight times the median income.
Metro population: 991,788
Cost premium: 7.7
Real estate taxes paid per capita: $310
Recent price increases: 8.6%
Long-term annual economic growth: 2%
Long-term annual job growth: 1%
6. Hartford, CT
Homes in Hartford are not expensive, but they’ve also lost value recently, meaning that selling now probably beats keeping a house. In addition, real estate taxes paid per capita are at No. 3 on our list, behind Bridgeport and New York.
Metro population: 1,214,295
Cost premium: 3.6
Real estate taxes paid per capita: $1,335
Recent price increases: -0.9%
Long-term annual economic growth: 1.3%
Long-term annual job growth: 0.5%
7. Rochester, NY
Rochester’s homes are the least expensive among the Top 12. However, real estate taxes paid per capita are high, and long-term economic growth is slow.
Metro population: 1,083,393
Cost premium: 2.5
Real estate taxes paid per capita: $1,119
Recent price increases: 0.9%
Long-term annual economic growth: 0.1%
Long-term annual job growth: 0.3%
8. Milwaukee, WI
Homeowners in Milwaukee have seen median prices increase almost 11 percent since 2012, which can make holding a better idea than selling. But the area’s long-term economic and job growth numbers don’t show the same growth.
Metro population: 1,572,245
Cost premium: 3.6
Real estate taxes paid per capita: $1,022
Recent price increases: 10.9%
Long-term annual economic growth: 0.9%
Long-term annual job growth: 0.2%
9. San Francisco, CA
It will come as no surprise that homes in the City by the Bay are unaffordable, costing more than seven times the median income. However, prices have jumped recently, so it might make sense to hold on a bit longer to see how much higher they’ll go.
Metro population: 4,594,060
Cost premium: 7.4
Real estate taxes paid per capita: $1,022
Recent price increases: 35.6%
Long-term annual economic growth: 1.7%
Long-term annual job growth: 1%
10. Philadelphia, PA
Home prices in Philly have grown less than a tenth as much as those in San Francisco. And long-term economic growth hasn’t been robust. Homes here aren’t especially expensive, though.
Metro population: 6,051,170
Cost premium: 3.8
Real estate taxes paid per capita: $1,040
Recent price increases: 3.4%
Long-term annual economic growth: 1%
Long-term annual job growth: 0.6%
11. Los Angeles, CA
Homes in the City of Angels have appreciated more in the past few years than anywhere else in the Top 12, so it might be worth waiting a little while to sell. However, with median prices more than seven times the median income and long-term economic and job growth proving unimpressive, selling could be a good move.
Metro population: 13,262,220
Cost premium: 7.3
Real estate taxes paid per capita: $654
Recent price increases: 37.3%
Long-term annual economic growth: 1.1%
Long-term annual job growth: 0.8%
12. Boston, MA
Boston homes are some of the more expensive to own in the Top 12, with the median home costing nearly five times the median income. Real estate taxes paid per capita are fourth highest in the Top 12. With recent price increases north of 10 percent, though, waiting just a little while to sell might be wise.
Metro population: 4,732,161
Cost premium: 4.9
Real estate taxes paid per capita: $1,144
Recent price increases: 11%
Long-term annual economic growth: 1.6%
Long-term annual job growth: 0.8%
Data sources: U.S. Census Bureau, U.S. Bureau of Economic Analysis, National Association of Realtors
