Thriving Downtowns: City-Level Insights on the Correlation Between Urban Economic Growth and Housing Values

In order to analyze the relationship between downtown economic growth and housing values, we need to consider the current market trends and how they affect pricing. A study on short-term rental markets in cities predicted to grow in 2025 highlights the importance of considering current market trends and how they affect pricing.

Analyzing the Data

In our analysis, we looked at the following cities: Rainbow, Crystal Beach, Falconer, Burlington, Sheldon, Mexican Colony, Grand Tower, Castro Valley, Locust Valley, and Sadler. We analyzed the median sale price, homes sold, inventory, days on market, and other key metrics for each city. For example, in Rainbow, the median sale price was $900,000, while in Crystal Beach it was $437,450, which is significantly lower than the median sale price in Locust Valley, which was $1,730,000.

It's worth noting that the median sale price in Sadler was $180,000, which is lower than most of the other cities, while Castro Valley had a median sale price of $1,315,000, one of the highest in the dataset. This highlights the importance of considering local market conditions and pricing trends when making investment decisions.

Median Sale Price

Our data showed that in Rainbow, the median sale price was $900,000, while in Crystal Beach it was $437,450. In comparison, the median sale price in Falconer was $265,000, which is significantly lower than the other two cities. However, when looking at the data for Locust Valley, we see a median sale price of $1,730,000, which is much higher than the other cities.

Similarly, our analysis of cities poised for growth in 2025 revealed that some cities have median sale prices that are increasing rapidly. For example, in vacation home hotspots, the median sale price is often significantly higher than in other cities.

Homes Sold

The number of homes sold in Rainbow was 1, while in Crystal Beach it was 2. In comparison, the number of homes sold in Falconer was 1, which is lower than the other two cities. However, when looking at the data for Locust Valley, we see a much higher number of homes sold, with 33 homes sold in the area.

It's worth noting that the number of homes sold in Sadler was 1, which is lower than most of the other cities, while in Castro Valley, the number of homes sold was also 33, one of the highest in the dataset. This highlights the importance of considering local market conditions and demand when making investment decisions.

Inventory

The inventory in Rainbow was 7, while in Crystal Beach it was 18. In comparison, the inventory in Falconer was 1, which is lower than the other two cities. However, when looking at the data for Locust Valley, we see a much higher inventory, with 10 homes available for sale.

It's worth noting that the inventory in Sadler was null, which is lower than most of the other cities, while in Castro Valley, the inventory was 56, one of the highest in the dataset. This highlights the importance of considering local market conditions and supply when making investment decisions.

Days on Market

The days on market in Rainbow was 27, while in Crystal Beach it was 150. In comparison, the days on market in Falconer was 58, which is higher than the other two cities. However, when looking at the data for Locust Valley, we see a much higher days on market, with 144 days.

It's worth noting that the days on market in Sadler was 152, which is higher than most of the other cities, while in Castro Valley, the days on market was 9, one of the lowest in the dataset. This highlights the importance of considering local market conditions and demand when making investment decisions.

Conclusion

In conclusion, our analysis highlights the importance of considering local market conditions, pricing trends, and demand when making investment decisions. The data shows that there are significant differences between cities in terms of median sale price, homes sold, inventory, and days on market. By considering these factors, investors can make more informed decisions and increase their chances of success.

We recommend analyzing short-term rental markets to gain a deeper understanding of local market conditions and trends. Additionally, we recommend considering the velocity analysis of properties to better understand local market conditions and demand. Furthermore, our analysis of suburban markets highlights the importance of considering local market conditions and trends when making investment decisions.