‘Hot’ Housing Markets a Matter of Geography

Zillow Inc., Seattle, released its annual list of hottest housing markets for 2017. And if you’re looking for a geographic trend, there isn’t one.

Topping the list this year is Nashville, Tenn. which Zillow said has moved beyond its country music roots to become a major healthcare employment center. Nashville is followed by Seattle, a market with home value growth in the double-digits and some of the fastest rent growth in the country.

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. Provo, Utah (3)–one of three Utah markets on the list–has the lowest unemployment rate of the 10 hottest markets at 2.7 percent. Home values in all three Utah markets are expected to appreciate more than 4 percent in 2017.

The report said Sacramento, Calif., (10) is one of the more affordable large metros in the state. Home prices are rising quickly, but are still 58 percent less expensive than the median Bay Area home. Zillow forecasts Sacramento home values to appreciate by nearly 5 percent over the next year.

Knoxville, Tenn. also makes the top 10 list (7). Other cities in the top 10 include Orlando (4), Salt Lake City (5), Portland, Ore. (6), Ogden, Utah (8) and Denver (9).

“Jobs and opportunities are increasingly growing in smaller markets away from the coasts,” said Zillow Chief Economist 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.”