Markets in 63 of the approximately 350 metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2014, according to the National Association of Home Builders/First American Leading Markets Index (LMI). This represents a year-over-year net gain of 11 markets.

The index’s nationwide score moved up slightly to .90, meaning that based on current permit, price and employment data, the nationwide average is running at 90 percent of normal economic and housing activity. Meanwhile, 69 percent of markets have shown an improvement year-over-year.

“The markets are improving at a consistent pace,” said NAHB Chairman Woods. “A growing economy and rising consumer confidence should help drive the release of pent-up demand in 2015.”

Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.41 – or 41 percent better than its last normal market level. Other major metros leading the list include Austin, Texas; Honolulu; Houston; and Oklahoma City. Rounding out the top 10 are San Jose, Calif.; Los Angeles; Salt Lake City; Charleston; S.C.; and Nashville, Tenn.

“The encouraging news is employment, where the number of metros that reached or surpassed their norms rose by 23 in a year,” said NAHB Chief Economist David Crowe. “However, single-family permits are only at 44 percent of normal activity, and remain the sluggish component of the index.”