| Buying home, condo or any other real estate in a | | | | annual home price appreciation of 4.2% from |
| market that is protected from a bursting bubble is | | | | 1949 to 2006. In contrast, the national average |
| every investor's dream. Knowing where to look | | | | was 2.3%. Strong restrictions on real estate |
| for these bubble-proof markets and how to | | | | development and a limited geography helped push |
| identify them is crucial. | | | | San Francisco to the top slot. |
| There are some important factors that investors | | | | Los Angeles ranked second in the report. The |
| should consider when searching for stable | | | | average annual home price appreciation in Los |
| investments such as single-family homes, condos | | | | Angeles was 3.7% from 1949 to 2006. |
| or any other type of real estate. Some of these | | | | Reductions in available land and increasing |
| factors include a fast growing population (which | | | | restrictions on further development helped pushed |
| positively impacts the demand for housing), a solid | | | | Los Angeles to the number 2 slot. |
| and diverse economy (which impacts employment | | | | Home prices in Seattle, which was third on the list, |
| rates and subsequent demand for housing), rising | | | | demonstrated an average appreciation rate of |
| incomes (which impacts buyers' ability to purchase | | | | 3.2% from 1949 to 2006. While Seattle made the |
| real estate), a developing infrastructure (which | | | | top 5 list, recent easing of building restrictions |
| contributes to the appeal of a city or community), | | | | may cause Seattle to fall out of the top 5 over |
| and restrictions on future real estate development | | | | the next few years. |
| (which limits future supply of real estate). | | | | Boston was fourth in the rankings. The city has |
| Investing in real estate within communities that | | | | seen annual home prices appreciate by 3% over |
| meet these criteria may prove to be more | | | | the period from 1949 to 2006. A strong increase |
| profitable than communities that are missing one | | | | in per capita income contributed to Boston's high |
| or more of these factors. | | | | ranking. |
| A recent report by Business 2.0 Magazine | | | | New York City follows close behind with an |
| identified U.S. cities that have consistently | | | | average annual home price appreciation of 3% |
| demonstrated price appreciation in the real estate | | | | from 1949 to 2006. A limited geography, large |
| market. The October 2006 issue of the Magazine | | | | population, and finite number of properties |
| identified the top 5 real estate markets that | | | | contributed to New York's high ranking. |
| demonstrated an upward price trend over a long | | | | While there is no guarantee that any of the real |
| period time. The top-ranking cities were: | | | | estate markets listed previously are truly "bubble |
| 1. San Francisco, California | | | | proof," the factors described above may help |
| 2. Los Angeles, California | | | | investors find the profitable markets and avoid |
| 3. Seattle, Washington | | | | "bubble" markets. Since the real estate market is |
| 4. Boston, Massachusetts | | | | constantly changing, be sure to seek out the |
| 5. New York City, New York | | | | services of a skillful real estate agent to help you |
| San Francisco topped the list with an average | | | | navigate your next real estate purchase. |