MARKET WATCH: ZIPCODES ON THE MOVE!

May 16, 2025

Manufacturing renaissance alert: $175+ billion in new industrial investments announced Q1 2025. New facilities driving 12-27% higher price appreciation in affected zip codes vs. national average (5.1% YoY as of April 30, 2025). Construction phases creating immediate housing demand, with permanent positions driving sustained growth through 2028.

Manufacturing Investment Impact on Home Values (YOY %)

The Southeast has emerged as the epicenter of manufacturing investment, particularly in Georgia, Tennessee, and the Carolinas. New industrial facilities are attracting workforce migration and dramatically reshaping local housing markets, with home values in affected zip codes up 18.5% YoY versus 7.2% regionally.

EV and semiconductor manufacturing are fueling unprecedented growth across Arizona and Texas markets. Housing inventories near major facilities have plummeted 32% YoY, while new construction permits are up 47% as developers race to meet workforce housing demand. Supply chain companies are creating secondary waves of growth in surrounding communities.

The industrial heartland is seeing a major revival with automotive and battery production facilities driving economic renewal. Previously stagnant markets are experiencing double-digit home price growth, with rental rates in affected zip codes up 15-22% YoY as workforce housing demand intensifies.

While receiving fewer major facility announcements than other regions, Northeast markets are benefiting from advanced manufacturing investments and research facility expansions. Tech-focused manufacturing is driving premium values in markets with existing innovation ecosystems.

TOP MOVERS THIS MONTH

Savannah, GA (31407): +37% YOY

Hyundai's massive 17-million-square-foot electric vehicle plant is transforming real estate in Savannah area zip codes. Housing inventory in 31407 has dropped below 0.9 months of supply, with median days on market down 72% YoY. Multiple offers now common on properties priced below $450K, with 63% of listings selling above asking price. Rental rates have surged 19% as early construction workers flood the market. The planned 8,100-worker facility will become 2025's largest industrial project.

Source: [9]

Marion, AR (72364):+31% YOY

Ford's BlueOval City in metro Memphis has catapulted this previously overlooked zip code into one of the nation's fastest-appreciating markets. The 10-million-square-foot facility across 4,000 acres is drawing substantial workforce migration, with active listings down 65% from pre-announcement levels. New construction permits have tripled YoY as developers scramble to meet demand. Current median home value: $272,500, up from $208,000 one year ago, with production starting by end of 2025.

Source: [9]

Phoenix, AZ (85044):+29% YOY

TSMC's recently opened 3.5-million-square-foot semiconductor facility has transformed this Phoenix submarket. Housing within a 20-minute commute radius showing strongest appreciation, with median prices up 29% YoY to $512,000. Rental rates have increased 23% with vacancy below 2.1%. The company's announcement of an additional $100 billion investment for three new fabrication facilities in the region signals sustained demand for years to come. Opportunity: Focus on South Mountain and Chandler submarkets for highest appreciation potential.

Source: [3]

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De Soto, KS (66018):+28% YOY

Panasonic's $4 billion battery plant (4.7 million square feet) has sparked a housing boom in this Kansas City suburb. The largest economic development in Kansas history has driven housing values up 28% YoY with median days on market dropping from 42 to just 11. Construction of new single-family homes up 58% YoY, with multi-family permits increasing 215%. Premium on properties within 15 minutes of facility site continues to expand, with average sales now 6.5% above asking price.

Source: [9]

Wilson, NC (27893):+26% YOY

Johnson & Johnson's new $2 billion+ manufacturing facility is driving unprecedented growth in this mid-size North Carolina market. Housing values have surged 26% YoY as the announcement of 500+ permanent jobs and 5,000 construction positions reshapes local real estate dynamics. New construction permits increased 72% quarter-over-quarter with significant activity in multi-family development. Opportunity: Focus on entry-level homes under $250K, which are selling within 7 days of listing at an average of 4.8% above asking price.

Source: [7]

Fort Worth, TX (76177):+23% YOY

Siemens' new $190 million electrical equipment manufacturing facility creating 800 jobs has sent ripples through north Fort Worth real estate. This zip code has seen median home values jump 23% YoY to $387,500, with days on market down 48% to just 12 days. Nearly 70% of homes are selling above asking price, with premium locations commanding 7-9% over list. Rental rates up 16% YoY with vacancy rates down to 3.1%, creating strong opportunities in multi-family investment.

Source: [7]

Belvidere, IL (61008):+14% YOY

Stellantis' $5 billion commitment to reopen its assembly plant is revitalizing this market that had faced economic challenges. With 1,500 employees being rehired, housing values have reversed a multi-year decline, rising 14% YoY. Days on market have decreased from 89 to 37, with inventory levels dropping 54%. Opportunity: Focus on distressed properties and renovations, as 42% of recent transactions involved homes requiring significant updates. Value-add potential remains strong as market recovery accelerates.

Source: [2]

MARKET SPOTLIGHT: SUPPLIER NETWORK EFFECTS

While primary manufacturing facilities generate headlines, the real opportunity for agents lies in identifying "second wave" growth markets affected by supplier networks. Data shows zip codes within 30-50 miles of major manufacturing hubs are experiencing delayed but substantial growth 12-18 months after initial facility announcements.

Case study: Following TSMC's Phoenix facility announcement, supplier companies leased over 1.2 million square feet in surrounding communities, driving 17-22% home value increases in previously overlooked zip codes like 85122 (Casa Grande) and 85138 (Maricopa). These markets offer entry points at 15-20% below primary zip codes while delivering comparable appreciation potential.

This pattern is repeating across all major manufacturing hubs. Identify semiconductor, EV battery, and electronics suppliers to anticipate future investment locations and position clients ahead of market recognition.

DATA CORNER

  • Skilled manufacturing jobs creating 2.5x multiplier effect on local service economy positions, with manufacturing wages averaging 12-17% higher than local median incomes.

  • New construction in manufacturing markets focusing on mid-tier housing ($275K-$425K range), with fastest absorption rates for 3BR/2BA homes between 1,800-2,200 sq ft.

  • Housing inventory has dropped below 1.2 months of supply in 63% of zip codes with major manufacturing announcements, compared to national average of 3.7 months.

  • Industrial space under construction has contracted 25% nationwide, creating potential supply constraints as manufacturing rebounds.

ACTION POINT

Create a "Manufacturing Opportunity Map" for your market to identify second and third-tier zip codes within commuting distance of announced facilities. Focus client acquisition on these areas 3-6 months before facility construction staffing peaks. Develop relationships with HR departments and relocation specialists at manufacturing companies to establish yourself as the local real estate expert for incoming workforce.