Zillow: San Jose remains the nation’s hottest housing market

This story was originally published in Builder.

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Zillow® says San Jose, California will remain the hottest real estate market in the country this year. This is the second year in a row that Silicon Valley has received this award, although price increases have slowed. Meanwhile, the south is attracting new residents looking for affordability and jobs in some emerging technology markets.

To find the hottest real estate markets, Zillow looked for places where we expect home values ​​and rents to surpass the nation in 2019, strong income growth, good job opportunities with low unemployment rates, and a growing population.

San Jose has the lowest unemployment rate and most jobs per person of the 50 largest US metropolitan areas, along with the highest home values ​​and projected increase in home value. While other West Coast markets – Seattle in particular – have slowed, San Jose continues to see double-digit growth in home value. It has driven the country’s home appreciation, which it should do again in the early months of 2019, although the market is undoubtedly facing headwinds. Inventory in San Jose has doubled in the past few months, but it remains scarce. It was also important for income growth, with typical household income increasing by 6.8%.

Five of the hottest markets are in the south, where housing is more affordable and attracts new residents. For example, median home values ​​in Jacksonville are one-sixth that in San Jose, and rents are about one-third the price. Orlando saw the largest population growth in the hottest real estate markets, up 2.8%.

The tech industry’s impact on housing is also evident on Zillow’s list. Along with the San Francisco Bay Area markets in San Jose and San Francisco, four metros (Atlanta, Dallas, Denver and Nashville) were in the top 10 finalist markets for Amazon’s HQ2 and have a growing tech industry.

Zillow’s Top 10 Housing Markets for 2019

  1. San Jose, California.
  2. Orlando, Fl.
  3. Denver, Colo.
  4. Atlanta, GA.
  5. Minneapolis, Minn.
  6. San Francisco, California
  7. Dallas, Texas
  8. Nashville, Tenn.
  9. Jacksonville, Fl.
  10. San Diego, California.

“When it comes to the hottest real estate markets in the country, long-time executives are hard to beat, but a number of young professionals are hot on their heels. The hot job market in Silicon Valley has fueled the real estate market in the region – which We expect this will continue into the first few months of 2019 – but there are some signs that the trend is from the west coast to the south and south-east, ”said Aaron Terrazas, senior economist at Zillow. “Affordability is attractive to both young professionals and booming companies that are earning the highest payroll in markets like Orlando, Minneapolis, Dallas and Nashville in 2019.”

Zillow used six variables to determine the hot market rankings: Zillow’s forecast for the change in the Zillow Home Value Index and Zillow Rent Index over the next 12 months, recent income and population growth, current unemployment rates, and the number of job vacancies per person with data from Glassdoor. These six variables were then scaled for the 50 largest U.S. metros and combined to create the top 10 list.

This story was originally published in Builder.

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