The 10 Real Estate Markets That Will Thrive in 2011

denver

Photo: StevenM_61 on flickr

A few islands of safety in a double dipping national housing market are found in the South and Midwest.Trulia’s Tara-Nicholle Nelson says these areas “never had the inflammatory price bubble in 2005-06, so they simply haven’t had the dramatic price deflation or foreclosure crisis experienced in other parts of the country.”

San Francisco also makes the list based on strong secular trends.

Trulia picked the top markets based on affordability and trends in job growth and migration.

Austin, Texas

Families who can afford a home: 73.9%

2000-2010 job growth: 14.1%

2000-2009 net migration: 51.2%

Why Austin is unique: Austin's high-tech and university-driven culture; rapid job growth (also in the tech-sector); and relatively affordable housing makes it attractive to a diverse set of relocating households.

Home you can buy right now: $3.9 million lakeside five-bedroom, reduced from $5.2 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Madison, Wisc.

Families who can afford a home: 75.6%

2000-2010 job growth: NA

2000-2009 net migration: NA

Why Madison is unique: Madison's tech and life sciences sectors are growing, adding jobs to its already-robust employment market. Madison home prices actually rose in 2010, despite the recession, as its highly educated population took advantage of affordable home prices and low rates.

Home you can buy right now: $1.8 million lakeside four bedroom, reduced from $2.5 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Raleigh-Durham, N.C.

Families who can afford a home: 73.1%

2000-2010 job growth: 13.5%

2000-2009 net migration: 236.7%

Why Raleigh-Durham is unique: In Raleigh-Durham, the story is about technology: the renowned Research Triangle is becoming a flourishing centre for tech companies who need an educated workforce and are drawn to costs of doing business and living that are far below those of Silicon Valley.

Home you can buy right now: $2.3 European-style five bedroom, reduced from $2.7 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

San Antonio, Texas

Families who can afford a home: 68.7%

2000-2010 job growth: 11.4%

2000-2009 net migration: 102.1%

Why San Antonio is unique: San Antonio has several factors that put it on the list, among them, its growing military and manufacturing sectors, which are keeping pace with its rapid population growth -- 21% just in 2009.

Home you can buy right now: $2.7 million brand new four bedroom, reduced from $3.1 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Des Moines, Iowa

Salt Lake City, Utah

Families who can afford a home: 74.3%

2000-2010 job growth: 5.8%

2000-2009 net migration: 9.2%

Why Salt Lake City is unique: In the Salt Lake City area, the story is largely about technology -- locations recently opened there by eBay, Twitter, Oracle and EA Sports, as well as a massive plant planned by Adobe, are turning this region into a mini-Silicon Valley, growing jobs, population and -- soon -- home values.

Home you can buy right now: $1.6 million modern four bedroom, reduced from $1.7 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Fort Collins, Colo.

Families who can afford a home: 78.0%

2000-2010 job growth: 11.7%

2000-2009 net migration: NA

Why Fort Collins is unique: Fort Collins, a college town, will grow both jobs and population over the next year, continuing the trajectory it's been on for the last decade. Low crime, high education rate, and low cost of doing business have caused Fort Collins to attract attention as a city likely to come out of the recession unscathed.

Home you can buy right now: $1.9 million mountain and lakeside six bedroom, reduced from $2.4 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Omaha, Neb.

Families who can afford a home: NA

2000-2010 job growth: 14.1%

2000-2009 net migration: 51.2%

Why Omaha is unique: Omaha's low unemployment rate derives from its status as a major economic hub for the Midwestern region. Its home prices have stayed steady through the recession, owing to the fact that it never saw the inflation of the bubble era. In Omaha, it seems to be steady as she goes.

Home you can buy right now: $950,000 five bedroom, reduced from $1.1 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Oklahoma City, Okla.

San Francisco, Calif.

Families who can afford a home: 28.0%

2000-2010 job growth: NA

2000-2009 net migration: NA

Why San Francisco is unique: Affluent San Francisco households will spend what it takes to own (vs. rent) their homes regardless of the market climate, but next year SF will also see job growth in tech and life science sectors -- where employees earn incomes high enough to afford pricey SF homes.
Prices have risen by 17% since their trough in February, 2009, yet many who can afford to buy still perceive homes as relatively affordable compared with their May 2006 peak.

Home you can buy right now: $3.2 million for a three bedroom architectural gem, reduced from $3.9 million

Data from Trulia uses National Assoc. of Home Builders affordability estimates, Praxis Strategy Group job data and Census migration data. Commentary by Trulia's Tara-Nicholle Nelson.

Now here's the markets you should definitely avoid...

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.