SEATTLE, Jan. 12, 2016 /PRNewswire/ -- Today, Zillow®
announced its predictions for the ten hottest housing markets in
2016. Topping the list is Denver,
followed by Seattle and
Dallas-Fort Worth, all of which
are major tech towns – ideal for job growth. Other places that made
the list are Utah markets
Ogden and Salt Lake City, along with Omaha, Neb. and Boise, Idaho.
To determine which markets would be hot, Zillow looked at home
value appreciation, low unemployment rates, and strong income
growth. Omaha has the lowest
unemployment rate of the ten hottest markets, at just 2.9 percent.
Denver saw home values rise 16
percent in 2015, and Zillow is forecasting them to rise another 5
percent in 2016, along with Portland.
A strong and diverse economy is the driving force behind
Richmond's high income growth,
with government, finance, education, and manufacturing jobs robust
in the area and expected to continue in 2016. Boise, Ogden,
Salt Lake City and Sacramento all have high forecasted home value
appreciation; homes are expected to appreciate an average of about
five percent over the next year.
Zillow's Top 10 Housing Markets for 2016:
- Denver, Colo.
- Seattle, Wash.
- Dallas-Fort Worth, Texas
- Richmond, Va.
- Boise, Idaho
- Ogden, Utah
- Salt Lake City, Utah
- Omaha, Neb.
- Sacramento, Calif.
- Portland, Ore.
"Trendy tech centers like San
Francisco, Seattle and
Denver hogged the spotlight in
2015. But this year, the markets that shine brightest will be those
that manage to strike a good balance between strong income growth,
low unemployment and solid home value appreciation," said Zillow
Chief Economist Dr. Svenja Gudell.
"As the job market continues to hum and opportunity becomes more
widespread, the best housing markets are no longer limited to the
coasts or one-industry tech towns. This year's hottest markets have
something for everyone, whether they're looking for somewhere to
raise a family or start their career."
Three variables influenced Zillow's hot market predictions:
Zillow's Home Value Forecasti, which forecasts the
change in the Zillow Home Value Index over the next 12 months,
recent income growthii, and current unemployment
ratesiii. Those three variables were then scaled and
combined to form a 'hotness score,' producing the top ten list.
Metropolitan
Area
|
Forecasted Home
Value Appreciation
|
Income
Growth
|
Unemployment
Rate
|
Denver
|
5.0%
|
1.1%
|
3.1%
|
Seattle
|
5.4%
|
1.1%
|
4.5%
|
Dallas-Fort
Worth
|
5.6%
|
1.1%
|
4.0%
|
Richmond
|
2.2%
|
1.2%
|
4.4%
|
Boise
|
4.7%
|
1.0%
|
3.3%
|
Ogden
|
4.9%
|
1.0%
|
3.4%
|
Salt Lake
City
|
4.4%
|
1.0%
|
3.1%
|
Omaha
|
3.2%
|
1.1%
|
2.9%
|
Sacramento
|
5.1%
|
1.1%
|
5.5%
|
Portland
|
5.0%
|
1.0%
|
5.0%
|
About Zillow
Zillow® is the leading real estate and
rental marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Zillow also sponsors the bi-annual Zillow Housing Confidence
Index (ZHCI) which measures consumer confidence in local housing
markets, both currently and over time. Launched in 2006, Zillow is
owned and operated by Zillow Group (NASDAQ: Z and ZG), and
headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i The Zillow Home Value Forecast uses data from past
home value trends and current market conditions, including leading
indicators like home sales, months of housing inventory supply and
unemployment, to predict home values over the next 12 months for
the nation and for more than 250 markets across the country.
ii Incomes in this analysis were determined using
Moody's Analytics estimates from the Census Bureau.
iii Unemployment rates in this analysis were determined
using Moody's Analytics estimates, from the Bureau of Labor
Statistics, Local Area Unemployment Statistics.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/zillow-names-hottest-housing-markets-for-2016-300202819.html
SOURCE Zillow