During the period after the Great Recession, there was a resurgence in the economies of large cities as people flocked to metropolitan areas like New York and Los Angeles. This led to a thriving housing market in these states as more people sought a better quality of life and job opportunities.
However, in recent years, there has been a dramatic shift in this trend as people in these over-saturated housing markets are looking to migrate to smaller cities. This is backed by research that says housing markets in large cities will only grow at 0.2 percent while smaller cities will grow at a faster pace of 1.6 percent. This growth is driven by millennials and the affordability factor in smaller cities. Here are today’s fastest-growing housing markets.
Located in the heart of Silicon Valley, it comes as no surprise that this is the fastest-growing housing market in America. The median price of a home in Sunnyvale is $1,496,500 which is lower than the median home price in California which is $1,800,300.
One of the major reasons for the high-growth market in this city is the value for money that real estate provides. The net worth of the properties in this area has grown by 23.7 percent over the last two years. This increase in value can be attributed to the tech boom in Silicon Valley as more people have moved there in search of employment.
San Jose, California
Another city that has benefitted from the tech boom is San Jose. Located in the Bay Area, close to San Francisco, many people have moved to San Jose for its employment opportunities which have led to a thriving housing market.
There has been a 24.7 percent increase in growth in the city’s housing market and the median home price is $929,000. This high value is partly due to the good employment rate in this city.
The third most competitive housing market is Freemont, California, also located close to Silicon Valley. The value of homes in this area increased by 22.2 percent over the past two years and the median price of a home is $1.1 million.
However, this price is still lower than the median price of the homes in the area by 12.5 percent. Freemont is centrally located with easy access to Silicon Valley, making this a hub for many tech companies that have their headquarters in this city. This is in addition to the high incomes of the residents in this area.
Located in the Bay Area, Oakland California is also one of the hottest property markets in the region. It is the 45th largest city in the United States with a population of 425,195. The population growth is expected to grow at a rate of 1 percent over the next five years.
The median price of a home in Oakland is $650,000 and this is based on a $68,000 household income per year. The rent-to-household income ratio is 27.3 percent. This city is said to have one of the fastest-growing housing markets as the year-over-year home sale growth is at 9.9 percent.
Seattle, Washington is one of the most competitive housing markets in the U.S and has a great location with proximity to the Microsoft tech hub in Redmond. This is the 18th largest city in the U.S with a population of 724,745 people and projected population growth of 1.1 percent over the next five years.
One factor that contributes to this booming real estate market is the high median income here, which is $83,476 compared to the median of the U.S. ($57,617). The rent-to-household income ratio is only 24.8 percent while the sale price growth of houses in this city is 5.1 percent.
Newark, New Jersey
Newark, New Jersey is located near New York City and Queens. The central location and growing population in Newark have led to an increased need for real estate in this city. Additionally, many millennials who work in New York City are choosing to live in Newark to benefit from the lower housing costs.
The median home value for a house in Newark is $264,000 and the value of these homes has increased by 11.9 percent over the past year. This value is expected to increase by 6.5 percent over the course of the next year.
Idaho is known as the home of the potato but it is also a major real estate hub. Investments in this state are referred to as “sleeper investments” because there is a demand for homes but it is not yet at its prime or at risk of becoming saturated.
Boise also has a growing population of 200,000 people along with its suburbs that cover the areas of Tampa and Meridian. Homes in this metropolitan city are known to be one of the best long-term investments and have an appreciation rate of 5.05 percent.
Arlington is a small city that lies between the cities of Dallas and Fort Worth in Texas. The central location of this city has made it a major real estate hub. Arlington is spread over 100 square miles and has a population of 380,000.
The city is known for being one of the most affordable places in America and is home to attractions such as Six Flags and Ripley’s Believe It or Not. Although the real estate market had a few low years during the financial crisis, there has been a steady growth in the value of the real estate in the last few years. The median price of a home is $249,900 and values have increased by 21.9 percent over the past year.
Colorado Springs, Colorado
When we think of real estate in Colorado we often think of larger cities like Denver. However, smaller cities like Colorado Springs have become a popular location for real estate investments. The city is located near the Rocky Mountains and has a population of 500,000 people.
With the growing population, many people are looking to buy homes in Colorado Springs. In fact, it is said to be one of the fastest-growing housing markets in America. The median price of a home in this city Is $294,600 and value has increased by nearly 6.7 percent over the past year.
Denver, Colorado is one of the best cities to buy real estate in. It has a population of over 2.7 million people. Denver is not yet a buyer’s market but is slowly making the transition to one.
The city has a variety of homes available and the median price is $422,400. For those looking to invest in real estate in Denver, there are a lot of homes to choose from given that this is largely a seller’s market. The value of the homes has gone up by 1.4 percent in the past year.
Mesa, Arizona is in close proximity to larger metropolises like Phoenix and is a thriving city with more than 460,000 people. It is a great place to experience big city life without getting too overwhelmed by large crowds.
Mesa has a very competitive housing market with a median home price of $253,700 and a cost per square foot of $159. The real estate in this city has a value that’s 11 percent higher than the average value of houses in the U.S. Additionally, there has been a 17.2 percent increase in the value of homes in Mesa over the past year.
Raleigh, North Carolina
Raleigh is a thriving metropolis in North Carolina with a population of 469,298 people. The homes in this city are in high demand which has led to rising home prices. The median price of a home in Raleigh is $268,400 and the price per square foot is $152. The value of the homes has increased by 3.6 percent in 2019.
Single-family homes are the most common types of real estate in Raleigh. In addition to this, the demand for apartments and tall apartment buildings is also on the rise. This city is largely considered a buyer’s market.
Research shows that Lincoln, Nebraska has had one of the largest increases in home value over the past decade. The average price for a home is $182,000 and this value only continues to increase, according to numerous homeowners in Lincoln. There has been a 15 percent increase in value from the previous year.
Lincoln is largely a seller’s market and homes only stay on the market for about 25 days. One of the major reasons for this booming real estate market is the infrastructure in this city and the employment opportunities. It is also ranked as one of the top 15 cities in America to buy a home.
Garland is a small suburb located in Texas and is soon becoming a major hub for real estate. It is also one of the best places to raise in a family in the U.S because it has a low crime rate and is quite affordable. In addition to this, the city also boasts a low unemployment rate.
The median price of a home in Garland is $197,700 and the value of homes has increased by 52 percent over the past decade. The median price per square foot is $126. In the next year, the value of this real estate is expected to increase by 2.3 percent.
Durham, North Carolina
The city of Durham in North Carolina is centrally located with connections to Chapel Hill and Raleigh and is home to nearly 250,000 people. The location, along with its affordable prices and numerous employment opportunities, has made Durham a real estate hub.
After the housing crash of 2008, Durham was one of the few markets that improved quickly and became a viable location for many real estate investors. The median price of a home is $225,600 and in the past year, home values have increased by 10.9.
The California housing markets are usually defined by large cities like San Francisco and Los Angeles but as the population in these cities only continues to grow, many people are making the shift to smaller cities like Sacramento. There are only 500,000 people in Sacramento and the city has connectivity to numerous places like Lake Tahoe and Roseville.
The median value of a home in Sacramento is $327,000 and there has been an increase of 4.0 percent in the value, this past year. Over the course of the next year, this price is expected to increase by 2.1 percent. The price per square foot is approximately $229.
Louisville is one of the largest cities in Kentucky and is home to nearly 700,000 people. However, if you include surrounding areas it has over 1.3 million people. Since it is located on the border of Kentucky, the real estate of the greater Louisville area spreads to Indiana as well.
The median price of a home in this city is $158,700 and home values have increased by 5.6 percent over the past year. The price per square foot is approximately $133. Many trends show an incline in Louisville’s housing market over the next few years. The average home in this city is on the market for around 54 days.
Spokane is the second-largest city in Washington state and is home to nearly 200,000 people. The metropolitan area has 600,000 residents. This city is slowly catching up to larger places like Los Angeles and New York and for the first time in many years, it has become more popular than Seattle’s housing market.
The median price of a home in Spokane is $205,600 and the value has risen by 10.5 percent since the past year. Research shows that this number is expected to increase by 8.9 percent in the next year. The price per square foot of the home in this city is $202.
Fort Worth, Texas
Fort Worth is often overshadowed by its counterpart Dallas, but it has become a major player in the real estate market over the past 10 years. It is home to 800,000 people while the metropolitan area has nearly 7 million people. In addition to the growing population, Fort Worth also offers numerous employment opportunities.
The median price of homes in the Fort Worth area is $197,100 and this value has increased by 9.6 percent from the previous year. Over the course of the next year, It is estimated that the prices will increase by 7.3 percent. The price per square foot of the average home is $123.
Cities like Columbus in Ohio have numerous construction projects in the pipeline to meet the increasing housing demand. This has caused the value of the real estate in this city to increase. Columbus is quite large and including the surrounding suburbs, there are nearly two million people.
The median price of a home in Columbus is $157,500 and the value of the real estate in this city has increased by 7.6 percent in 2018. It is estimated that the price will rise by 4 percent the following year. The price per square foot of a home in Columbus is $135.