See which cities are making the cut this year. (You might see a city that you're a familiar with)
If you’re thinking about where to move next, you’re probably considering a wide array of factors like work, family, and the start of a new chapter. Every home purchase is also a huge investment—possibly the biggest you’ll make in your life. Looking at the markets poised for growth can ensure your new home is also a good investment. To help, Trulia looked at the 100 most populated metros in the country, then used five key metrics to determine the 10 real estate markets with the highest growth potential in 2018: strong job growth, affordability, low vacancy rates, home search rates on Trulia.com, and a high population of young households (you can find our full methodology below). It may surprise you—it did us—to learn that Texas and Ohio are home to more than one fast-growing city. See where else made the cut below.
1. Grand Rapids, MI
On the mighty banks of the Grand River, Michigan’s second-largest city is at the top of our list largely due to its strong employment growth, which is up 2.5 percent year-over-year. Grand Rapids also has a relatively low vacancy rate (ranked 16th overall) and a high share of households with residents 35 years and under (22 percent). A full two-thirds of Grand Rapids’ residents own homes, and the median home sale price is a friendly $163,750. Living here means enjoying the waterfront, the Frederik Meijer Gardens & Sculpture Park, and the Grand Rapids Art Museum, which spotlights Michigan’s artists. A bubbling brew scene doesn’t hurt either.
2. Nashville, TN
Next on our list is Nashville, also known as Music City. But you don’t have to be in the band to love it here. Home of the famous “Grand Ole Opry,” residents in Nashville are always down for a good time. Need more evidence? Just walk through The Gulch, a trendy Art Deco-inspired neighborhood. Not surprisingly, Tennessee’s capital has a high share of households under 35 years old (23 percent) and the strongest job growth in the country (3.1 percent year-over-year), luring people from all corners of the nation to relocate. But taking the top spot in job growth may come at a price: affordability, where Nashville is ranked 58th overall.
3. Raleigh, NC
North Carolina’s capital, Raleigh, is known for the bright minds of North Carolina State University and the Research Triangle (together with Durham and Chapel Hill). But it’s also beloved for its wealth of culinary and cultural cornerstones, like the Oakwood historic district, designated on the National Register of Historic Places, where homes date back to the 1800s. This City of Oaks made our list due to its strength in two categories: job growth (ranked 3rd overall) and low vacancy rate (ranked 15th overall). Its popularity, though, leaves the city lagging in affordability—the median sales price in North Carolina’s second most popular city is $250,000—where it ranks 43rd overall.
4. El Paso, TX
This Southwestern city on the Rio Grande is loved for its incredible Tex-Mex cuisine, a wealth of locations for outdoors lovers to explore, and a rich downtown artist community and farmers market. Major employers in El Pasorange from the US military to the University of Texas at El Paso, healthcare corporations to major retailers. The average price of a home here is just $186,611, and it’s a hot market for the social young and single set: the median age is 33, and 24 percent of residents are single. You’ll find many of them moving to the up-and-coming Mission Hills neighborhood. “The fantastic weather, developing downtown area, and affordable price range of housing speak to younger buyers as well as just about everyone,” says Laura Baca, an area real estate agent.
5. San Antonio, TX
San Antonio is known for its River Walk, an oasis of cypress-lined paved paths and lush landscapes where locals and visitors alike go to relax. But the city is bustling, too. In 2017, job growth rose 2.2 percent, and the national homeownership rate increased significantly for the first time in more than 10 years. In fact, homeowners make up two-thirds of the city’s population, at 65 percent. San Antonio’s top employers are a mix of military, city, and school districts, as well as private and public businesses, making this 300-year-old city flush with new job opportunities. These trends are expected to continue into 2018, with homeownership outpacing renting for the indefinite future.
6. Fort Worth, TX
This city of cowboys and culture is a hot destination in the Lone Star state, welcoming 8.8 million visitors annually. Fort Worth is comprised of seven primary entertainment districts, each offering dining, shopping, entertainment, and cultural amenities—offering mass appeal for a new generation of residents, allowing the city to lay claim to the youngest population of any major metro in Texas. It’s only 17 miles from the DFW International Airport, ensuring personal and business travel is extremely convenient. The city also has an impressive percentage of homeowners (68 percent), and with popular employers such as Lockheed Martin Aeronautics, American Airlines, the Naval Air Station, and city and school district offices, it’s a solid place to set down roots.
7. Austin, TX
Capital city Austin, with its legendary live music, burgeoning restaurant scene, cool culture, and vibrant community is a draw for everyone—even those who aren’t coming to listen to tunes in the Live Music Capital of the World. Austin’s also a university town, and many folks stay on after school. The national homeownership rate ticked up both for households under 35, as well as those aged 35-44, with the former showing a substantial increase from 34 percent in 2016 to 35 percent in the second quarter of 2017. Though home buying among millennials is likely to be sluggish in the short-run, the long-run potential for this generation to support housing consumption in the United States is big.
8. Columbus, OH
Big things are happening in Columbus, Ohio’s capital and most populous city. It’s booming, and not just in population. There are 33 acres of new riverfront parkland in downtown, cultural institutions are adding to their offerings, neighborhoods are bursting with new places to eat and shop, and the innovative food scene gives residents plenty of options. Trends in Columbus show a 12 percent year-over-year rise in median home sales price, and even with the upward trajectory, the average home comes in at just $159,900. “Our urban areas are booming with renovation and new build projects, and our suburbs maintain their investment values very well,” says Cheryl Chapin, an area real estate agent. “We have a lot of areas across the city that are walkable, have great dining and shopping, yet they’re close to downtown amenities.”
9. Madison, WI
Madison is Wisconsin’s second-largest city and state capital. It’s also home to the state government and the University of Wisconsin-Madison, the city’s largest employers. The town’s amassed a treasure chest of kudos, from most-walkable and best road-biking city, to most vegetarian-friendly, LGBTQ-friendly, and environmentally friendly city, too. Of the places on this list, Madison has the highest percentage of college-educated residents (60 percent). The up-and-coming Tenney-Lapham neighborhood houses lots of young families and hosts a popular annual art walk.
10. Cincinnati, OH
Resting along the banks of the Ohio River, the vibrant Cincinnati region spans portions of three states: Ohio, Kentucky, and Indiana. The third-largest city in Ohio has dedicated homeowners, with 63 percent of the population owning homes and its home sales price slowly growning, up 4 percent year-over-year. Cincinnati’s popular Over-the-Rhine district, which includes Findlay Market and food and craft vendors, is a favorite place for locals to spent the weekend, as is Cincinnati Zoo and Botanical Garden.
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Article by Jill K Robinson of Trulia (Dec 27, 2017)