Nashville and Seattle are among the USA’s hottest housing markets for 2017, with property prices and rental rates both set to rise.
The two areas came out on top of Zillow’s latest report looking ahead at the year. To determine which markets would heat up over the next 12 months, Zillow looked for places with quickly rising home values, low unemployment rates and strong income growth.
Utah is one particularly notable hotspot, with three markets making the Top 10, including Provo, Salt Lake City and Ogden. Provo has the lowest unemployment rate of the 10 hottest markets at 2.7 per cent. Home values in all three Utah markets are expected to appreciate more than 4 per cent in 2017.
Nashville is in the number one spot, as Zillow highlights the market for moving beyond its music roots to become a major healthcare employment hub. California’s capital, Sacramento, is one of the more affordable large metros in the state. Home prices are rising quickly, but are still 58 per cent less expensive than the median Bay Area home and are forecast to grow 5 per cent in the next year.
Although Nashville is ranked number one, Zillow’s list is largely made up of Western cities. Portland reported the strongest home value growth in 2016 among the 100 largest US metros, with home values up almost 15 per cent over the past year. Housing experts predict that Portland, Seattle and Denver will continue to outperform the average national home value growth in 2017. Nationally, Zillow expects home values to appreciate 3 per cent over the next year.
“Zillow’s 2017 list highlights that jobs and opportunities are increasingly growing in smaller markets away from the coasts,” says Zillow Chief Economist Dr. Svenja Gudell. “Mid-size cities like Salt Lake City, Portland, and Nashville are desirable places to live, with good employment opportunities and steady economic growth. The growth and demand for housing will drive up home prices in 2017, and these hot markets are experiencing change as more people discover them.”
Looking to invest in US property this year? Read our guide to the top investment hotspots of 2017.Google+