So where are the hottest markets for 2015? Realtor.com crunched the numbers and came up with its picks for the top 10 housing markets to watch next year.
“The markets on this list range from big cities with older housing stock to big and mid-sized cities with substantial levels of new construction to up-and-coming markets appealing to young professionals for their job growth and high affordability,” said Realtor.com chief economist Jonathan Smoke.
The top 10 cities to watch for 2015 are:
- Atlanta, Ga.
- Dallas, Texas
- Denver, Colo.
- Des Moines, Iowa
- Houston, Texas
- Los Angeles, Calif.
- Minneapolis, Minn.
- Phoenix, Ariz.
- San Jose, Calif.
- Washinton, D.C.
Atlanta was one of the cities hardest-hit by the housing crash. Now, however, it’s starting to rebound. The Atlanta area is projected to see 7% growth in total households over the next five years, according to Realtor.com. The city is also experiencing strong employment growth, and housing there is still affordable compared to many other markets.
Dallas has a strong construction market, with a predicted 7% growth in home sales in 2015. The city is on track to set a new employment record this year, and its homes continue to be affordable, Realtor.com reports.
Denver is expected to see the largest percentage increase in home sales of any major market, with a projected 14% spike next year, according to Realtor.com. The mile-high city also has a strong local economy and is setting records for new jobs. Affordability is declining there, however, with a projected 3% growth in home prices next year.
Des Moines’ high affordability and strong local economy have set the stage for a strong housing market in 2015, Realtor.com reports. The city boasts an unemployment rate well below the national average, and a high level of home ownership among millennials.
Houston set a new employment record in 2014, and is expected to boast 4% employment growth next year. That employment growth, coupled with strong construction, should mean a strong housing market in 2015.
Los Angeles is one of the least affordable cities in the nation – and one of the hardest hit in the economic downturn – but jobs are starting to return to the City of Angels, according to Realtor.com. Home sales in LA are expected to grow by 6% next year.
Minneapolis, with its strong job market and affordable housing, has become a favorite for millennials, according to Realtor.com. In fact, Minneapolis is the second-largest market in the country for home ownership among millennials. The city is also seeing a boom in new construction.
One of the top five markets in the country for new construction, Phoenix expects to see a 7% increase in household growth over the next five years, Realtor.com reports.
San Jose’s location in the heart of Silicon Valley means unemployment is remarkably low. Household growth is expected to be 6% over the next five years – double the national rate. Home sales there are projected to grow 7% in 2015, according to Realtor.com.
The government sequester in 2013 and early this year slowed the capital’s economic growth – but now the city is rebounding, according to Realtor.com. After a 2% decline in 2014, Washington home sales are expected to spike 10% next year.
The economic crash in 2008 hit housing hard, but the market has mostly rebounded. Some housing markets, however, have rebounded more than others.