On the whole, the nation’s housing prices continued to rise throughout this year and are expected to continue to do so into the foreseeable future.
But, according to the National Association of Realtors, there are a handful of markets that are expected to rise above the rest over the next half-decade or so in terms of performance.
NAR’s economists analyzed the nation’s various markets, comparing various factors and determined which 10 housing markets will be the nation’s hottest over the next three to five years.
To determine the top 10 housing markets that will be the hottest, NAR considered domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees, and home price appreciation, along with other variables.
According to NAR Chief Economist Lawrence Yun, the top 10 markets are expected to outperform the rest of the nation in a number of those areas.
“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” Yun said. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
Without further adieu, here are the 10 markets that NAR expects to the hottest in the nation in the next three to five years. In alphabetical order, the markets are:
- Charleston, South Carolina
- Charlotte, North Carolina
- Colorado Springs, Colorado
- Columbus, Ohio
- Dallas-Fort Worth, Texas
- Fort Collins, Colorado
- Las Vegas, Nevada
- Ogden, Utah
- Raleigh-Durham-Chapel Hill, North Carolina
- Tampa-St. Petersburg, Florida
According to NAR, strong job growth is helping to drive up home prices in these markets, with payroll employment rising approximately 2.5% annually in the last three years, higher than the national rate of 1.6%.
Ogden, Las Vegas, Dallas, and Raleigh, all had job growth of nearly 3% in the last three years.
Beyond that, these markets are attracting more new residents than others. More specifically, people are moving to these markets at higher rates than the average of the 100 largest U.S. metro areas.
