SEATTLE, Sept. 15, 2020 /PRNewswire/ -- This year has been
anything but normal and, like 2020 as a whole, this summer's most
in-demand housing markets are not the usual suspects.
A new Zillow® analysis shows mid-sized1 cities like
Boise, Syracuse, and Portland (ME) are now leading the country as
the top markets poised for growth, replacing expensive coastal
metros such as San Francisco and
Seattle that have led the way in
the past. Many of these markets also happen to offer home shoppers
more space for their money, as the coronavirus pandemic has
reshaped where and how people want to live.
The analysis weighs a variety of factors to show demand in the
market, and continued opportunity for growth. Those include recent
and forecasted home value growth, the share of homes sold above
list price, and how quickly homes sell.
Home shopper behavior continues to evolve throughout the
pandemic, but many are reconsidering their home's functionality or
dreaming of more space -- factors which might drive their next
move. A recent Zillow survey2 found nearly one-third of
Americans who could occasionally work remotely said they would
consider moving in order to live in a larger home (30%), have a
home with more rooms (29%), and have a home with a dedicated office
space (31%).
As remote work opens up more opportunities for home ownership,
many first-time buyers may seek out a starter home in a more
affordable area. These are the top dozen mid-sized metros that
offer more space for growing families and big-city amenities for
urbanites.
1. Boise, Idaho
Population: 616,5613; typical home value:
$334,965
Boise, Idaho, is an
up-and-coming city drawing young professionals, families, and
retirees alike. Home values are strong and continue to rise,
increasing 11.8% from last year, and are expected to grow 5.6% into
next year. Buyers are snatching up houses in record time here, with
the typical home going under contract in as little as five
days.
"Boise offers that small-town
feel people crave from the movies, and has something for everyone,"
says Michael Edgar, owner of Michael
Ryan Real Estate, who relocated to Boise in 2003 from California. "There's an abundance of outdoor
activities right outside your doorstep, plenty of restaurants to
choose from, and not a lack of career opportunities. Its
affordability makes it a great place to raise kids, retire, or work
remotely."
Boise, which was an
under-the-radar hot market last year, offers both a bustling
downtown, with quiet neighborhoods and access to outdoor
recreation.
2. Huntsville, Ala.
Population: 417,593; typical home value: $203,242
Huntsville, known as Rocket
City, is home to the U.S. Space and Rocket Center. Home values have
also skyrocketed, increasing 11.5% compared to last year, and home
values are forecasted to increase 5% over the next year.
3. Ogden, Utah
Population: 597,159; typical home value: $344,816
Ogden offers the benefits of
urban life with easy access to the outdoors. The demand in this
market is strong, with 41.5% of homes selling above list price --
helping sellers who want to trade up and signaling there are buyers
eager to settle in Ogden. Zillow
is forecasting home values in Ogden will increase 4.6% in the next year,
showing the demand for this market is here to stay.
4. Spokane, Wash.
Population: 527,753; typical home value: $293,655
Spokane has seen accelerating
home value growth, increasing 9.5% from a year prior. The
Spokane market is hot for sellers,
with 45.1% of homes selling above list price. Competition for
homes here may be attributed, in part, to the metro's vibrant
downtown, trail system and growing microbrewery and winery
scene.
5. York, Pa.
Population: 434,972; typical home value: $195,837
York is the oldest city on this
list, dating back to 1777 as the first U.S. capital. Today,
York has a suburban feel mixed
with its history, and sales of these architecturally unique homes
do not appear to be slowing down anytime soon. Home sales increased
a whopping 75.7% from the previous month, and are 17.7% above last
year's levels.
6. Colorado Springs, Colo.
Population: 645,613; typical home value: $336,927
Colorado Springs' hot housing
market bumps it up the list, with home values sharply increasing
and poised to continue strong growth. Home values have seen a 9.5%
increase from last year, and are forecasted to grow 4.8% over the
next year. Home sales are up 17.8% above last year's levels.
"If you love the outdoors and you love biking, hiking, camping
and all the things that come with the Colorado lifestyle, you'll love the Springs,"
said Jacob Mueller, a Colorado Springs native and a Zillow Premier
Agent with Atlas Real Estate. "You can get into the mountains
really easily and that's very attractive. The city is also
experiencing tremendous economic growth, so people can grow their
careers here without having to leave for a bigger city."
7. Lancaster, Pa.
Population: 519,445; typical home value: $242,009
Homes are flying off the market in the growing city of
Lancaster, and home sales continue
to boom. Sales are up 78.6% from last month, with homes typically
going under contract in 7 days. With its proximity to city hubs and
great walkability, Lancaster
offers wide open spaces, with proximity to plenty of bars and
restaurants.
8. Modesto, Calif.
Population: 514,453; typical home value: $340,762
Homes in Modesto are in high
demand, with 39.1% selling above the list price -- indicating
buyers are competing to put down roots in this agricultural hub.
Homes are only on the market for 7 days before going under
contract, and home values here are forecasted to increase 4% over
the next year.
9. Syracuse, N.Y.
Population: 662,577; typical home value: $154,596
Syracuse is the market to watch
in upstate New York. Home values
here continue to appreciate, and are 6.8% above last year's levels,
and projected to increase 4% by this time next year.
"Syracuse offers a great
quality of life at a reasonable cost," said R.J. Long, managing
partner at Coldwell Banker Prime Properties in New York state. "It's got gorgeous hills and
terrain, and proximity to the water with the Great Lakes and the
Finger Lakes nearby. It offers beautiful homes, good jobs and
it's accessible from anywhere in the state."
10. Visalia,
Calif.
Population: 442,179; typical home value: $232,800
Visalia is a vibrant community
with a small-town feel and a gateway to the outdoors. Home values
continue to climb here, up 7.5% since last year. Home value growth
is forecasted to continue into next year, expected to rise another
4.3%. Additionally, more than one out of every three of homes on
the market sell above list price, indicating buyers are ready to
settle down in this community.
11. Portland,
Maine
Population: 514,098; typical home value: $334,650
"For those looking for an arts and foodie-driven lifestyle on
the ocean, Portland can't be
beat," says Nate Wildes, Executive
Director of the nonprofit Live and Work in Maine. "Portland offers the Maine quality of life, matched with a uniquely
quaint urban experience and genuine sense of place. The communities
of greater-Portland are a thriving
destination."
Home values in this seaport metro continue to grow, up 7.5% from
last year and are expected to see 3.9% growth into next year. There
are very eager buyers ready to make Portland home, with nearly 40% of homes
selling above list price.
12. Lansing,
Mich.
Population: 464,036; typical home value: $170,011
Rounding out the list is Michigan's capital, Lansing, where buyers are active and ready to
secure their next home. Monthly sales are increasing at a rapid
pace, up about 68% from the previous month, and 40% of homes are
selling above the listed price.
Methodology
"Mid-Sized Markets" are metropolitan areas ranked by size
between 76-125 of all U.S metros. The analysis of these metros
weighted five variables equally to determine the list:
- Home value growth year-over-year
- Forecasted home value growth
- Days a home stays on the market
- Share of homes sold above list price
- Month-over-month sale counts
About Zillow
Zillow, the most-visited real estate website in the U.S., is
building an on-demand real estate experience. Whether selling,
buying, renting or financing, customers can turn to Zillow's
businesses to find and get into their next home with speed,
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In addition to for-sale and rental listings, Zillow Offers buys
and sells homes directly in dozens of markets across the country,
allowing sellers control over their timeline. Zillow Home Loans,
our affiliate lender, provides our customers with an easy option to
get pre-approved and secure financing for their next home
purchase.
Millions of people visit Zillow Group sites every month to start
their home search, and now they can rely on Zillow to help them
finish it — with the same confidence, ease and empowerment they've
come to expect from real estate's most trusted brand.
Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and
ZG).
1 Mid-size cities are ranked by size between 75-125
of all U.S metros
2 This survey was conducted online within
the United States by The Harris
Poll on behalf of Zillow from May 4-6,
2020 among 2,065 U.S. adults ages 18 and older. This online
survey is not based on a probability sample and therefore no
estimate of theoretical sampling error can be calculated. For
complete survey methodology, including weighting variables and
subgroup sample sizes, please contact press@zillow.com.
3 Population data are the most recent numbers from
the 2010 Census
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SOURCE Zillow