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