Zillow says these are 2018's hottest markets

by Steve Randall10 Jan 2018
The technology sector will continue to play an important part in the housing market in 2018 with Silicon Valley’s San Jose leading the league of hottest markets.

That’s the view of Zillow which says that its analysis shows Raleigh, NC and Seattle will also be hot this year.

The rankings are based on fast-rising home values and rental prices, low unemployment rates, steady income growth and strong job opportunities with lots of people moving to the area.

For population growth Austin, TX leads (2.8%) while Seattle renters can expect a 3.5% rise in rents over the next 12 months, the largest rent rise predicted.
 
Rank Metro Area Median
Home Value
YoY Home
Value
Forecast
Median
Rent
YoY
Rent
Forecast
Job
Openings
Per
Person
Income
Growth
Population
Growth
Unemployment
Rate
1 San Jose, Calif. $1,128,300 8.9% $3,514 -0.5% 0.036 7.9% 0.1% 3.5
2 Raleigh, N.C. $233,900 3.7% $1,441 1.2% 0.022 9.0% 2.3% 3.6
3 Seattle $463,800 5.4% $2,243 3.5% 0.027 4.4% 1.7% 4.1
4 Charlotte, N.C. $181,600 4.0% $1,300 1.9% 0.020 9.4% 2.0% 3.9
5 San Francisco $893,100 3.8% $3,413 -0.2% 0.029 9.2% 0.5% 3.5
6 Austin, Texas $277,600 3.3% $1,713 -0.8% 0.023 5.7% 2.8% 2.8
7 Denver $376,500 3.0% $2,056 2.4% 0.029 2.3% 1.4% 2.6
8 Nashville, Tenn. $228,900 3.8% $1,498 0.1% 0.021 3.5% 1.9% 2.2
9 Portland, Ore. $370,700 3.7% $1,902 3.4% 0.018 7.6% 1.5% 4.0
10 Dallas $218,300 4.7% $1,621 1.4% 0.020 3.5% 1.8% 3.3

"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. "Growing cities in the Sun Belt, places like Raleigh, Charlotte and Nashville, offer plenty of opportunities healthcare and finance, while providing a less-expensive, but still-convenient, alternative to the larger and pricier markets in the Northeast."

Zillow’s analysis calls for a 3.2% rise in 2018 nationwide and the markets in the top 10 are expected to outpace that, with the exception of Denver.

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