Atlanta

Hotlanta was less steamy when it came to housing starts last year, with permit activity falling to mid-1990s levels and expected to continue to decline in 2008, Porter says. Meanwhile, an increase in foreclosures made it No. 11 in the country, according to RealtyTrac. Atlanta didn’t experience the sharp price increase in the resale market that other Southern cities faced, so only modest decreases are expected in the median price the next three years, Porter says. But he adds that an anticipated slowdown in the solid job growth the city has experienced over the past several years will create less demand for housing.