While the housing market has faced difficulties in 2020, like low inventories and high prices, 2021 will likely be a year of booming residential real estate across the country. This is supported by a new forecast from Realtor.com [1], which lists the top 10 housing markets expected to have the strongest home price and sales growth in the States next year.
The 10 markets on the list have an average 14.1% share of millennials, which surpasses the 13.5% of millennials that make up the country as a whole. Since millennials are at a prime time for purchasing homes, this larger share of millennials is a key factor that will bolster housing markets in 2021. Still, Realtor.com reports that “older, more financially established generations will be the ones purchasing the majority of the homes next year.”
Tech hubs take many of the top slots on the list. High paying jobs in the technology sector are prevalent in areas such as Sacramento, San Jose, Boise, Denver, and Seattle. These thriving tech hot spots have experienced growth in home prices and will likely continue to do so in 2021.
Capital cities also made their mark on next year’s forecast as half of the cities on the list of the top 10 housing markets are state capitals. This indicates that the government presence offers opportunities for local economies, job markets, and, in turn, housing markets.
Affordability will still be an obstacle for many potential homeowners in 2021. In eight out of next year’s top 10 housing markets, home prices are more expensive than the average of the top 100 markets. However, some of the top 10 markets relatively affordable in comparison to nearby areas that offer more square space for a similar price.
Millennial homebuyers, technology opportunities, local governments, and affordability all factor into the top markets for the year ahead. Here are the 10 markets that experts at Realtor.com expect to see booming in 2021:
1. Sacramento, California
Median home price: $554,050
Home price change: +7.4%
Sales change: +17.2%
Combined sales and price growth: +24.6%
2. San Jose, California
Median home price: $1,199,050
Home price change: +10.8%
Sales change: +10.8%
Combined sales and price growth: +21.6%
3. Charlotte, North Carolina
Median home price: $368,819
Home price change: +5.2%
Sales change: +13.8%
Combined sales and price growth: +19.0%
4. Boise, Idaho
Median home price: $445,000
Home price change: +9.1%
Sales change: +9.8%
Combined sales and price growth: +18.9%
5. Seattle, Washington
Median home price: $629,050
Home price change: +9.7%
Sales change: +8.9%
Combined sales and price growth: +18.6%
6. Phoenix, Arizona
Median home price: $412,260
Home price change: +7.0%
Sales change: +11.4%
Combined sales and price growth: +18.4%
7. Harrisburg, Pennsylvania
Median home price: $262,000
Home price change: +3.8%
Sales change: +14.4%
Combined sales and price growth: +18.2%
8. Oxnard, California
Median home price: $824,000
Home price change: +5.5%
Sales change: +12.5%Combined sales and price growth: +18.0%
9. Denver, Colorado
Median home price: $520,000
Home price change: +5.4%
Sales change: +12.5%
Combined sales and price growth: +17.9%
10. Riverside, California
Median home price: $475,050
Home price change: +5.5%
Sales change: +12.4%
Combined sales and price growth: +17.9%