Looking to Move to the Next Big City? Here are the Top 5 Fastest Growing Real Estate Markets in the Country.
According to the National Association of Realtors, the U.S. housing market will begin slowing down during 2019, leading to a “boring” landscape of foreseeable 2.2 percent price growth. This prediction comes off the heels of the GOP tax bill that passed through the House and Senate in 2017. Combining these new conditions with an environment featuring rising mortgage rates, home prices, and a housing supply not satisfactorily meeting demand, experts predict a highly stable market with moderate housing price increases. While this all seems feasible for the short-term future, there are some markets that are ignoring these factors and instead growing at superior levels. We explore the top 5 hottest markets igniting the U.S. real estate industry.
Honorable Mention: Arlington, VA
Back in November, Amazon announced they would be building one of their HQ2 buildings in Arlington, VA. This announcement sent the area into a real estate-buying frenzy. How much of a frenzy? A 17.7 percent increase in home sales frenzy. That increase within a six month window has made the market red hot. However, because this has only happened over a short-term time span, we left it out of our top 5. If this continues, the Arlington-area will become the hottest market by the end of this year.
5. Kennewick, Washington
Located alongside the Columbia River and the Lewis and Clark Trail, Kennewick, Washington saw a 14.5 percent increase in median housing prices over the past year. Much of this increase can be attributed to the revitalization of the historic downtown area with the inclusion of art galleries, local breweries, and boutique stores. While not ideally situated near a major U.S. city, the locals love the atmosphere of being in a populated area seemingly isolated from the world. Essentially, whenever they want to get their “isolationist” fix, it’s only a hop, skip, and a fifteen-minute drive away.
4. Decatur, Alabama
This river town has quickly developed into a manufacturing haven for companies like Vulcan Materials and Toray. Combining this influx of new jobs with their growing riverside front across the river from Huntsville, AL, this town has seen a 15.2 percent growth in median house prices in the past year, and will continue to grow into the near future.
3. Boise City, Idaho
Edging out Decatur with a 15.4 percent in median house price growth, Boise City has made it into our top 3. Known for their vibrant nightlife, historical preservation, and Boise State University's blue football field, this diverse city hosts many different neighborhoods each featuring its own unique style. Combining this with its low cost of living and tech presence, experts believe Boise is poised to become a major metropolis over the coming decade.
2. Las Vegas, Nevada
Sin City has seen its ups and downs, but with the rising living costs of California, the introduction of more family-friendly activities, and developers aggressively building new suburban homes to meet demand, Las Vegas has become the second fastest-growing city in the U.S. It is currently expanding at a slightly higher rate than Boise City, which, for a city getting its own hockey and football teams, is a good thing. As long as developers match demand in suburbia, Las Vegas will become a stable market for Los Angelenos looking to escape.
1. San Jose, California
When you combine all of the research universities, tech companies, investment capital firms, and “a cultural affinity for risk”, you end up with a powerful ecosystem with boundless opportunities for expansion. These are some of the reasons that San Jose has grown by 18.4 percent over the past year and is predicted to keep this pace over the next decade. Developers are slowly addressing this limitless, but slowing demand. If they keep lagging, housing prices will continue to skyrocket, and will soon make the San Jose area the most expensive place to live in the world.
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