Liz Farmer of Governing.com recently reported that Oklahoma and Texas are among the top metropolitan areas leading the nation to their overall recovery. Meanwhile, California and Florida continue to struggle. The rankings are based on the most up to the date Metro Areas' Recovery From Pre-recession Peak - Best and Worst report from the Brooking Institution.
According to the data manager and research analyst for the institute’s Metropolitan Policy Program, Alec Friedhoff, the national recovery from the recession, which bottomed out in most metro economies between 2009 and 2010, has been a sluggish process.
Since their pre-recession climax, Texas and Oklahoma made up the first six of the top ten metro areas in the country that ranked for their economic progress. Most of the cities in these areas are not very much affected by the recession as compared to other parts of the United States. Friedhoff told Governing, “In many cases they are ahead of where they were since recession started.” California and Florida have a different fate. They are found far behind in their recovery. Since several areas in California and Florida profited largely on real estate, they were very much affected by the crashing of the real estate market in 2008.
In the Metro Areas' Recovery from Pre-recession Peak - Best and Worst report, Cape Coral
-Fort Myers, Florida is found at the further end of the spectrum. The area, based on the report of Farmer, saw more than ten percentage point increase in unemployment, whereas housing values plunge by 60 percent.
Hopefully, more jobs will be created in Florida as Forbes predicted. Furthermore, the development in the housing market is also seeing growth in the coming year especially in the West and in Florida because the tax base in these areas was rocked with foreclosures.
According to Robert Wetenhall, a homebuilding analyst for RBC Capital Markets, investors predict a 22 percent increase in new housing starts to 950,000 in 2013. Watenhall, particularly predicted an improvement in building and construction activity in the Florida.
Watenhall said in a statement, “The remaining foreclosures are of much lower and impaired quality than the existing homes,” He added, “So buyers will choose to purchase existing homes in better condition or buy new homes.” Generally, recovery overturn is happening in areas with manufacturing and technology activities.