SEATTLE, Jan. 9, 2018 /PRNewswire/ -- Today, Zillow®
announced its predictions for 2018's hottest housing markets.
Topping the list this year is Silicon Valley's San Jose, Calif., followed by Raleigh, N.C. and Seattle.
To identify 2018's hottest housing markets, Zillow looked for
places with quickly rising home values and rental prices, low
unemployment rates, steady income growth and strong job
opportunities with lots of people moving to the area.
Austin, Texas has the strongest
population growth on the top 10 list, at 2.8 percent. Seattle has the highest forecasted rental
appreciation, with rents in the metro expected to climb another 3.5
percent over the next 12 months.
Rapid home value growth and a high number of job openings per
person are the driving forces behind San
Jose's position at the top of Zillow's list. The
San Jose housing market has been
booming for several years, mainly due to people moving to the area
for high-paying jobs. Zillow's analysis highlights just how
strong the San Jose market really
is. While San Francisco home
values have recently started to cool, San
Jose is off to the races, with home values projected to rise
9 percent in 2018. The median home value in San Jose is over $1
million, and the median rental price is $3,514 per month. Over the past five years,
San Jose home values have
appreciated 78 percent.
Although Zillow's list is largely made up of established tech
towns, two increasingly hot North
Carolina markets also made the top 10 ranking. Income and
population growth in Charlotte and
Raleigh are among the strongest of
all markets on the list. Raleigh
anchors North Carolina's "Research
Triangle" and saw a 9 percent increase in income growth last year.
In Charlotte, a fast-growing
banking center, incomes rose about 9.5 percent over the past
year.
Zillow's Top 10 Housing Markets for 2018:
- San Jose, Calif.
- Raleigh, N.C.
- Seattle
- Charlotte, N.C.
- San Francisco
- Austin, Texas
- Denver
- Nashville, Tenn.
- Portland, Ore.
- Dallas
"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. 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."
In nine out of the 10 markets on Zillow's list, home values are
expected to rise at a faster pace than the nation overall, with the
exception of Denver. Nationally,
Zillow expects home values to appreciate 3.2 percent over the next
year.
Zillow used six variables to determine the hot market
predictions: Zillow's Home Value and Rent Forecast, which forecasts
the change in the Zillow Home Value Indexi and Zillow
Rent Indexii over the next 12 months, recent income and
population growthiii, current unemployment
ratesiv, the number of job openings per person using
data from Glassdoor. Those six variables were then scaled for the
50 largest U.S. metros and combined to form a 'hotness score,'
producing the top ten list.
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
|
About Zillow
Zillow is the leading real estate and
rental marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Zillow also sponsors the bi-annual Zillow Housing Confidence
Index (ZHCI) which measures consumer confidence in local housing
markets, both currently and over time. Launched in 2006, Zillow is
owned and operated by Zillow Group Inc. (NASDAQ: Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i The Zillow Home Value Index (ZHVI) is the median
estimated home value for a given geographic area on a given day and
includes the value of all single-family residences, condominiums
and cooperatives, regardless of whether they sold within a given
period. It is expressed in dollars, and seasonally adjusted.
ii The Zillow Rent Index (ZRI) is the median Rent
Zestimate® (estimated monthly rental price) for a given geographic
area on a given day, and includes the value of all single-family
residences, condominiums, cooperatives and apartments in Zillow's
database, regardless of whether they are currently listed for rent.
It is expressed in dollars.
iii Incomes in this analysis were determined using
Moody's Analytics® estimates from the Census Bureau. Population
growth was determined using ACS 2015 and 2016 1-year estimates.
iv Unemployment rates in this analysis were determined
using Moody's Analytics® estimates from the Bureau of Labor
Statistics, Local Area Unemployment Statistics.
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SOURCE Zillow