San Jose, Calif. came in No. 1 in Zillow’s ranking of hottest housing markets, fueled by the still-booming tech companies of Silicon Valley.
Raleigh holds the No. 2 spot in Zillow’s annual prediction, with the Research Triangle powering much of the growth, based on its rising home values and rental prices, steady income growth, abundant job opportunities and low unemployment rate.
And Seattle, home to Amazon.com, came in No. 3 in Zillow’s analysis.
The top three housing markets in 2018 all have strong technology sectors, Zillow said.
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Charlotte, boosted by the financial sector and a fast-rising population, came in just behind Seattle. San Francisco was No. 5, behind Charlotte.
Charlotte was ranked in the top 10 in another forecast for 2018, coming in at No. 7 in a Realtor.com prediction. Like many fast-growing cities, the housing market in Charlotte has been defined by tight inventory, rising prices and climbing rent. Charlotte’s prices are expected to keep rising faster than the national average, ticking up 4 percent.
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To predict the top 10 markets, Zillow calculated each metro’s home value and rent for 2018 in the 50 largest U.S. cities, recent income and population growth, unemployment rates and the number of job openings per person using Glassdoor, a job recruiting website.
The list ranks San Jose in the top spot for its high number of job openings per person and increasing home value, Zillow said.
“The tech industry continues to roar, attracting thousands of new residents per year to tech-dominant markets like Seattle, Denver and the Bay Area,” Terrazas said. “The higher cost of living in these areas is offset to a large degree by well-paying tech jobs.”
Southern cities made up half of the top 10. Other Southern cities that made list included Nashville, Tenn., Dallas and Austin, Texas.
“Growing cities in the Sun Belt, places like Raleigh, Charlotte and Nashville, offer plenty of opportunities healthcare and finance, while providing a less-expensive, but still-convenient, alternative to the larger and pricier markets in the Northeast,” said Zillow senior economist Aaron Terrazas, in a statement.
Zillow reported that Raleigh’s income grew by 9 percent last year and predicted its median home value in 2018 would be $233,900. The unemployment rate is 3.6 percent.
Here are the top 10 U.S. housing markets, as ranked by Zillow:
1. San Jose, Calif.
5. San Francisco
6. Austin, Texas.
8. Nashville, Tenn.
9. Portland, Ore.
Zillow is a national database for real estate and rental properties.