Is your city on the list?
It looks like 2018 will be yet another big year in real estate. According to Zillow, 52.6 percent of all homes nationwide are worth as much or more than they were at the peak of the housing boom in April 2007.
Last year was already a competitive year if you were looking to buy a home—Zillow reported that U.S. home values across the nation were up 7.2 percent over the past year and there were three percent fewer homes on the market than the previous year. Plus, a new Zillow analysis found that one in four U.S. homes were sold above the list price in 2017—with the typical price increase for these homes at 3.1 percent. Zillow predicts that home values will appreciate 3.2 percent over the next year.
To compile their list of the top 10 housing markets in 2018, the real estate site looked at cities with rising home values and rental prices, low unemployment rates, and income growth and job opportunities. One big—though not surprising—trend to emerge from the list: Tech towns are seeing a big boom, especially in the heart of the tech industry, California’s Bay Area. San Jose holds the number one spot on the list and San Francisco comes in at number five. In San Jose, home values are projected to rise nine percent this year, and have appreciated 78 percent over the past five years.
Other notable findings: Of the 10 cities on the list, Charlotte, North Carolina, has the highest percentage of income growth (9.4 percent), while Austin, Texas has the strongest population growth (2.8 percent). San Jose has the highest amount of job openings per person (0.036), while Nashville, Tennessee, has the lowest unemployment rate (2.2 percent).
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“This list shows that just because a market is smaller or more affordable doesn’t mean it isn’t dynamic,” said Zillow senior economist Aaron Terrazas, in a press release. “Growing cities in the Sun Belt, places like Raleigh, Charlotte and Nashville, offer plenty of opportunities in healthcare and finance, while providing a less-expensive, but still-convenient, alternative to the larger and pricier markets in the Northeast. The tech industry continues to roar, attracting thousands of new residents per year to tech-dominant markets like Seattle, Denver and the Bay Area. The higher cost of living in these areas is offset to a large degree by well-paying tech jobs.”
Take a look at the top 10 list below:
- San Jose, California
- Raleigh, North Carolina
- Seattle, Washington
- Charlotte, North Carolina
- San Francisco, California
- Austin, Texas
- Denver, Colorado
- Nashville, Tennessee
- Portland, Oregon
- Dallas, Texas