The U.S. housing market is getting hotter in 2018 with 52.6 percent of all homes across the country worth as much or more than they were at the peak of the national housing boom in April 2007, according to a survey on the 10 hottest housing markets of the US released by Zillow on Tuesday.
The survey says that U.S. housing markets with healthy income growth, abundant job opportunities and above-average housing appreciation are likely to get hotter in 2018. These include technology hubs like the silicon valley markets of San Jose and San Francisco and markets in the Southeastern part of the U.S such as Raleigh and Charlotte in North Carolina and Nashville, Tennessee.
With a median household income of $110,000 and a Zillow Home Value Forecast of 8.9 percent, San Jose tops Zillow’s list as the hottest housing market in the U.S. The survey said that home values in this Silicon Valley hub gained 17.4 percent over the past year, showing the fastest growth among the 50 largest metro areas as high-paying tech jobs continued to keep pace with climbing housing costs.
The survey also ranked two North Carolina markets – Raleigh and Charlotte, second and fourth respectively. With a median household income of $71,7685 in Raleigh and $59,979 in Charlotte, both these areas according to the survey, show strong income and population growth. Raleigh is growing as the Research Triangle and is getting known for innovations outside its life science base, while Charlotte is building on its reputation as a financial center where the Bank of America is headquartered.
Tech hubs Seattle ranked third and San Francisco ranked fifth rounded out the top five. The top 10 list also included Nashville, Denver and Austin – which have the lowest unemployment rates among large metros, even as Austin’s population grows faster than other major metros (at 2.8 percent between 2015 and 2016), the survey indicated.
The survey also reported on housing markets that would continue to face challenges in 2018. They include former industrial giants such as Cleveland, Buffalo, and Milwaukee. The survey indicated that the population of these three metros was falling, and unemployment in Cleveland was well above the historically low national rate of 4.1 percent at 6.2 percent.