Top 10 Cities with ‘Elastic’ Supply

Prices and demand for homes are rising. However, according to real estate listing website Trulia, builders are providing fewer new housing units as prices rise than they have in the past.

Long-run “elasticity” — a measure of the gap between growth in home prices and housing supply — was at 0.17 during the first quarter of 2016, down from 0.18 a year ago and below the 30-year average of 0.20.

Here’s National Mortgage News’ look at the top 10 housing markets challenging national trends. To determine the elasticity of these markets, Trulia compared the 20-year change in housing stock to the 20-year change in quality-adjusted home prices.

# 10: Fort Myers-Cape Coral, Fla.

Increase in Housing Stock: 73.4%
Increase in Housing Prices: 126.2%
Housing Supply Elasticity: 0.58

# 9: Washington, D.C.

Increase in Housing Stock: 78.0%
Increase in Housing Prices: 132.5%
Housing Supply Elasticity: 0.59

# 8: Greensboro-Winston Salem-High Point, N.C.

Increase in Housing Stock: 31.4%
Increase in Housing Prices: 47.0%
Housing Supply Elasticity: 0.67

# 7: Columbia, S.C.

Increase in Housing Stock: 44.7%
Increase in Housing Prices: 66.4%
Housing Supply Elasticity: 0.67

# 6: Indianapolis, Ind.

Increase in Housing Stock: 30.4%
Increase in Housing Prices: 44.3%
Housing Supply Elasticity: 0.69

# 5: Atlanta, Ga.

Increase in Housing Stock: 53.4%
Increase in Housing Prices: 68.9%
Housing Supply Elasticity: 0.77

# 4: Charlotte-Gastonia-Rock Hill, N.C.-S.C.

Increase in Housing Stock: 60.9%
Increase in Housing Prices: 76.1%
Housing Supply Elasticity: 0.80

# 3: Albuquerque, N.M.

Increase in Housing Stock: 37.5%
Increase in Housing Prices: 46.1%
Housing Supply Elasticity: 0.81

# 2: Raleigh-Durham-Chapel Hill, N.C.

Increase in Housing Stock: 71.6%
Increase in Housing Prices: 87.2%
Housing Supply Elasticity: 0.82

# 1: Las Vegas, Nev.

Increase in Housing Stock: 87.8%
Increase in Housing Prices: 75.2%
Housing Supply Elasticity: 1.17