Which housing markets are the best bets to recover first? We present our annual list of the 20 healthiest housing markets in the country.

By:  Boyce Thompson

16. Portland-Vancouver-Beaverton, OR-WA

Market Health Indicator: 34.4

2009 Total Building Permits: 3,821

2010 Building Permit Forecast: 10,156

Builders in the Portland area are placing their bets on a strong recovery in 2010; they pulled 17% more permits in the fourth quarter of last year than they did a year earlier, with nearly all the strength in single-family. The locals are betting on some strong underlying demographics, including a projected 2% increase in household growth and continued in-migration from more expensive California markets. The industry doesn’t appear deterred by the region’s urban growth boundaries or its new eco-districts. Market Intelligence is predicting big things for Portland–an increase of 6,200 in building permits. While Portland’s Renaissance Homes became one of the first major builders to emerge from Chapter 11 proceedings, two others–Legend Homes and Pacific Lifestyle Homes–are still working on their reorganization plans.