The US cities where home prices will rise the most in 2021
- A new Zillow report lays out the US cities where property values are expected to rise in 2021.
- Austin is expected to reign as the nation’s hottest housing market for the second consecutive year.
- Forecasts like Zillow’s are useful for both individuals on the hunt for primary residences and real-estate investors.
- Visit Business Insider’s homepage for more stories.
Despite home prices hitting record highs across the country, there are still some US cities where property values are expected to rise even more in 2021.
Most of those cities are in the Sun Belt, according to new Zillow research. The online real-estate marketplace collected data and made predictions about the places it believes will be the hottest housing markets of 2021. Spots in Florida, Texas, and Colorado made the list.
The Sun Belt, the stretch of about 15 states across the southern US, from Virginia and Florida in the east to southern California in the west, earned its moniker for its balmy climate and its reputation for growth in both population and economic metrics.
A panel of real estate experts and economists surveyed by Zillow projected that home values in five metropolitan areas — including Denver and Tampa — are expected to grow the most in 2021.
Such forecasts are useful for both individuals on the hunt for primary residences and real-estate investors who might want to either purchase and resell a property or invest in one to rent out for passive income. The potential for future home-price increases is particularly important for those making decisions about where to buy real estate.
Pricey areas on both coasts, like New York and San Francisco, are predicted to fare the worst against the national average, according to Zillow.
Claiming first place in the ranking for the second consecutive year is Austin, the Texan capital that is experiencing a deluge of residents from both the Big Apple and the Bay Area as major companies and big-name executives either relocate or open outposts there.
Here are the five cities whose housing markets are predicted to perform the best in 2021.
5. Denver, Colorado
The Colorado capital is home to around 700,000 residents, where homeowners and renters each represent equal halves of the housing market. The city ranks 11th on Niche’s list of best US cities for young professionals and 27th on the list of healthiest places to live in America.
The median home value in the Denver metro area is $481,402, according to Zillow, which predicts values will increase by 7.6% over the next year.
4. Tampa, Florida
Tampa is home to just over 375,000 people, and about 52% of residents rent their homes. The sprawling Gulf Coast city is ranked among the best places to live in Florida and the best cities to retire, according to Niche.
The typical value of a home in Tampa is $272,167, according to Zillow. Over the last year, Tampa home values have gone up 10.9%, and Zillow predicts they will continue to rise over the next year.
3. Nashville, Tennessee
Trendy Nashville is home to just under 700,000 residents, where, according to Niche, 54% of residents own their homes. The Tennessee capital is ranked 47th on the list of best cities to buy a house in America and 57th on the list of best cities for young professionals in America.
The median home value in Nashville is $335,000, according to Redfin, which reports home prices have increased 2.2% over the last year.
2. Phoenix, Arizona
With a population north of 1.6 million, Phoenix has an urban-suburban feel and a 54% homeownership rate, according to Niche. Phoenix ranks 56th on the list of most diverse cities in America and 65th on the list of best cities to retire in America.
The median sale price of homes in Phoenix is $317,000, according to Redfin, which reports that value has jumped 13.2% year-over-year.
1. Austin, Texas
With a population just under 1 million, Austin is experiencing a boom thanks to an influx of tech companies and executives. The Texas capital ranked 17th on the list of top US cities for young professionals, 33rd on the list of best places to raise a family in America, and 23rd on the list of best cities to live, according to Niche.
The city’s typical home value has risen 12.8% over the last year and now stands at $437,800, according to Zillow, which predicts Austin home values will continue to to rise over the next year.
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