A new study conducted by The Demand Institute, a think tank operated by the Conference Board and Nielsen, found that the uneven housing market recovery in the United States will continue for the next five years.
Researchers conducted an 18-month study on 2,200 towns and cities in America and interviewed more than 10,000 people in order to predict the housing market outlook and chalk out the effects of the current real estate scenario.
They found that a large portion of the housing recovery is concentrated in a handful of cities. Metro areas like Tampa, Memphis and Jacksonville will see a 32 percent rise in home prices by 2018; however, cities like Washington D.C. and Phoenix will see prices rise by only 11 percent, they predicted.
"The strength of the local housing market is among the most telling metrics that helps us assess community health and well-being," Louise Keely, chief research officer at the Demand Institute and co-author of the report, told Reuters.
The study also highlighted that the variation in price rise will differ largely, with the strongest markets set to see double digit price rises, while the pace will be slow for weaker markets.
The research also indicates that in the next five years, the rising prices will force more people to rent than to buy. Multi-family homes will gain in popularity and about 4 million households will fail to achieve their rental or purchasing goals.
"The findings in this report raise many challenges for industry leaders, local community leaders, and national and regional policy makers. However, they also showcase many opportunities to align investments with local conditions more effectively, to drive innovation and entirely new business models, and to set policies that will improve people's lives," according to the report.
"Here, we highlight what we regard as some of the report's most important findings and frame implications for public- and private-sector leaders."
