2019’s Best Real-Estate Markets
2:59 AMPosted by: Adam McCann
Whether you’re joining the real-estate business or just looking for a place to call home, it’s important to get a handle on the housing markets you’re considering before investing in a property. With unemployment falling and house prices rising, the market as a whole has been in a boom, despite the fact that the new tax code has drastically reduced mortgage interest deductions. But while home values are rising, up 5.2% from last year, fewer homes are affordable because mortgage rates are rising. However, home prices and rental rates vary widely across the U.S. based on supply and demand.
If you aim for long-term growth, equity and profit, you’ll need to look beyond tangible factors like square footage and style. Those factors certainly drive up property values. From an investor’s standpoint, though, they hold less significance than historical market trends and the economic health of residents.
To determine the best local real-estate markets in the U.S., WalletHub compared 300 cities of varying sizes across 23 key indicators of housing-market attractiveness and economic strength. Our data set ranges from median home-price appreciation to home sales turnover rate to job growth. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.
Main FindingsEmbed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/14889/geochart-housemarket1.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2LY21c0>
Best Places to Buy a House
|
Overall Rank (1 = Best) |
Large Cities |
Overall Rank (1 = Best) |
Midsize Cities |
Overall Rank (1 = Best) |
Small Cities |
|---|---|---|---|---|---|
| 1 | Austin, TX (68.47) | 1 | Boise, ID (73.68) | 1 | Denton, TX (70.51) |
| 2 | Fort Worth, TX (68.23) | 2 | Frisco, TX (72.44) | 2 | Carrollton, TX (70.02) |
| 3 | Aurora, CO (67.11) | 3 | Overland Park, KS (71.69) | 3 | Allen, TX (69.52) |
| 4 | Denver, CO (66.80) | 4 | Cary, NC (71.07) | 4 | Murfreesboro, TN (69.19) |
| 5 | Charlotte, NC (66.60) | 5 | McKinney, TX (70.23) | 5 | Thornton, CO (67.58) |
| 6 | Nashville, TN (66.45) | 6 | Durham, NC (69.67) | 6 | Spokane Valley, WA (67.12) |
| 7 | Lexington, KY (66.31) | 7 | Fort Wayne, IN (69.51) | 7 | Wilmington, NC (66.83) |
| 8 | Colorado Springs, CO (66.28) | 8 | Gilbert, AZ (67.99) | 8 | Greeley, CO (66.80) |
| 9 | Seattle, WA (65.84) | 9 | Grand Rapids, MI (67.88) | 9 | Hillsboro, OR (66.42) |
| 10 | Raleigh, NC (64.61) | 10 | Laredo, TX (65.29) | 10 | Richardson, TX (66.32) |
| 11 | Atlanta, GA (64.25) | 11 | Fort Collins, CO (65.04) | 11 | Chico, CA (66.20) |
| 12 | Minneapolis, MN (64.01) | 12 | Grand Prairie, TX (64.80) | 12 | Bellevue, WA (65.69) |
| 13 | Omaha, NE (62.68) | 13 | Irving, TX (64.03) | 13 | Tuscaloosa, AL (65.38) |
| 14 | Arlington, TX (62.13) | 14 | Salem, OR (64.02) | 14 | Arvada, CO (65.18) |
| 15 | San Francisco, CA (60.97) | 15 | Chesapeake, VA (63.66) | 15 | Roseville, CA (65.00) |
| 16 | Louisville, KY (60.94) | 16 | Vancouver, WA (63.60) | 16 | Renton, WA (63.91) |
| 17 | Columbus, OH (60.94) | 17 | Reno, NV (63.50) | 17 | Sterling Heights, MI (63.87) |
| 18 | Oakland, CA (60.67) | 18 | Irvine, CA (63.37) | 18 | Longmont, CO (63.25) |
| 19 | St. Paul, MN (60.31) | 19 | Eugene, OR (63.21) | 19 | Clovis, CA (63.22) |
| 20 | San Jose, CA (60.30) | 20 | Henderson, NV (63.15) | 20 | Everett, WA (63.06) |
| 21 | Sacramento, CA (60.28) | 21 | Huntsville, AL (62.86) | 21 | Athens-Clarke, GA (62.76) |
| 22 | Wichita, KS (59.91) | 22 | Madison, WI (62.81) | 22 | North Charleston, SC (62.65) |
| 23 | Mesa, AZ (59.91) | 23 | Elk Grove, CA (62.77) | 23 | Santa Clara, CA (62.11) |
| 24 | Dallas, TX (58.42) | 24 | Chandler, AZ (61.84) | 24 | Vacaville, CA (62.03) |
| 25 | Portland, OR (58.40) | 25 | Spokane, WA (61.65) | 25 | Ann Arbor, MI (61.97) |
| 26 | Phoenix, AZ (57.81) | 26 | Lakewood, CO (61.58) | 26 | Centennial, CO (61.78) |
| 27 | San Antonio, TX (57.76) | 27 | Tempe, AZ (61.35) | 27 | Westminster, CO (61.45) |
| 28 | Kansas City, MO (57.52) | 28 | Sunnyvale, CA (61.24) | 28 | Pueblo, CO (61.38) |
| 29 | Oklahoma City, OK (57.34) | 29 | Plano, TX (61.05) | 29 | Yakima, WA (61.31) |
| 30 | Santa Ana, CA (56.96) | 30 | Winston-Salem, NC (60.97) | 30 | Lansing, MI (61.29) |
| 31 | El Paso, TX (56.69) | 31 | Fremont, CA (60.77) | 31 | Fairfield, CA (61.20) |
| 32 | Houston, TX (56.53) | 32 | Hayward, CA (60.55) | 32 | Beaverton, OR (61.00) |
| 33 | Las Vegas, NV (56.53) | 33 | Tacoma, WA (60.46) | 33 | Livonia, MI (60.94) |
| 34 | Memphis, TN (56.41) | 34 | Lincoln, NE (60.27) | 34 | Roswell, GA (60.90) |
| 35 | Stockton, CA (56.39) | 35 | Port St. Lucie, FL (59.93) | 35 | Charleston, SC (60.73) |
| 36 | Boston, MA (56.16) | 36 | Peoria, AZ (59.89) | 36 | Manchester, NH (60.62) |
| 37 | San Diego, CA (55.72) | 37 | Alexandria, VA (59.38) | 37 | Kenosha, WI (60.22) |
| 38 | Indianapolis, IN (55.71) | 38 | Ontario, CA (59.30) | 38 | Kent, WA (60.17) |
| 39 | Fresno, CA (55.52) | 39 | North Las Vegas, NV (59.24) | 39 | Davie, FL (59.82) |
| 40 | Riverside, CA (55.43) | 40 | Orlando, FL (59.12) | 40 | High Point, NC (59.24) |
| 41 | Tampa, FL (55.13) | 41 | Santa Clarita, CA (58.86) | 41 | Federal Way, WA (59.23) |
| 42 | Bakersfield, CA (54.98) | 42 | Moreno Valley, CA (58.41) | 42 | Surprise, AZ (59.21) |
| 43 | Anaheim, CA (54.83) | 43 | Garland, TX (58.28) | 43 | Richmond, CA (59.19) |
| 44 | Honolulu, HI (54.68) | 44 | Fontana, CA (58.26) | 44 | Gresham, OR (58.91) |
| 45 | Jacksonville, FL (54.13) | 45 | Santa Rosa, CA (58.26) | 45 | Santa Monica, CA (58.88) |
| 46 | Corpus Christi, TX (54.10) | 46 | Rancho Cucamonga, CA (57.64) | 46 | Warren, MI (58.55) |
| 47 | Virginia Beach, VA (53.94) | 47 | Corona, CA (57.30) | 47 | Temecula, CA (58.54) |
| 48 | Milwaukee, WI (53.90) | 48 | Greensboro, NC (57.27) | 48 | Vallejo, CA (58.21) |
| 49 | Tucson, AZ (53.67) | 49 | Modesto, CA (57.19) | 49 | Daly City, CA (58.16) |
| 50 | Pittsburgh, PA (53.48) | 50 | Pembroke Pines, FL (57.13) | 50 | Norman, OK (57.97) |
| 51 | Washington, DC (53.42) | 51 | Knoxville, TN (57.12) | 51 | Green Bay, WI (57.85) |
| 52 | Los Angeles, CA (52.69) | 52 | Richmond, VA (57.09) | 52 | Antioch, CA (57.83) |
| 53 | Long Beach, CA (51.99) | 53 | Springfield, MO (56.70) | 53 | Sandy Springs, GA (57.61) |
| 54 | Albuquerque, NM (51.32) | 54 | Cincinnati, OH (56.28) | 54 | Murrieta, CA (57.44) |
| 55 | New Orleans, LA (51.20) | 55 | Des Moines, IA (55.99) | 55 | Victorville, CA (57.24) |
| 56 | New York, NY (47.60) | 56 | Scottsdale, AZ (55.91) | 56 | Boulder, CO (57.23) |
| 57 | Tulsa, OK (47.50) | 57 | Cape Coral, FL (55.88) | 57 | Cambridge, MA (57.13) |
| 58 | St. Louis, MO (47.26) | 58 | Amarillo, TX (55.73) | 58 | Gainesville, FL (56.96) |
| 59 | Philadelphia, PA (46.93) | 59 | Glendale, AZ (55.72) | 59 | San Mateo, CA (56.83) |
| 60 | Miami, FL (46.36) | 60 | Chula Vista, CA (55.69) | 60 | Vista, CA (56.72) |
| 61 | Chicago, IL (45.58) | 61 | Columbus, GA (55.11) | 61 | Concord, CA (56.66) |
| 62 | Cleveland, OH (44.12) | 62 | Escondido, CA (55.08) | 62 | Naperville, IL (56.37) |
| 63 | Baltimore, MD (42.24) | 63 | Salinas, CA (55.05) | 63 | Visalia, CA (56.23) |
| 64 | Detroit, MI (33.81) | 64 | Oxnard, CA (54.89) | 64 | Fort Smith, AR (56.00) |
| 65 | Oceanside, CA (54.67) | 65 | Plantation, FL (55.78) | ||
| 66 | Glendale, CA (54.27) | 66 | Savannah, GA (55.72) | ||
| 67 | Salt Lake City, UT (54.23) | 67 | Ventura, CA (55.58) | ||
| 68 | Garden Grove, CA (53.95) | 68 | Cedar Rapids, IA (55.52) | ||
| 69 | Akron, OH (53.61) | 69 | Westminster, CA (55.49) | ||
| 70 | Pomona, CA (53.59) | 70 | Palm Bay, FL (55.37) | ||
| 71 | Augusta, GA (53.46) | 71 | Mesquite, TX (55.36) | ||
| 72 | San Bernardino, CA (53.37) | 72 | Carlsbad, CA (55.25) | ||
| 73 | Huntington Beach, CA (53.36) | 73 | Roanoke, VA (55.19) | ||
| 74 | Norfolk, VA (53.21) | 74 | Lowell, MA (55.13) | ||
| 75 | Anchorage, AK (52.75) | 75 | Carson, CA (54.93) | ||
| 76 | St. Petersburg, FL (52.43) | 76 | Yuma, AZ (54.84) | ||
| 77 | Tallahassee, FL (52.38) | 77 | Sunrise, FL (54.69) | ||
| 78 | Hialeah, FL (51.90) | 78 | Miramar, FL (54.67) | ||
| 79 | Lancaster, CA (51.48) | 79 | Orange, CA (54.51) | ||
| 80 | Worcester, MA (51.38) | 80 | Rialto, CA (54.49) | ||
| 81 | Providence, RI (51.04) | 81 | Quincy, MA (54.15) | ||
| 82 | Palmdale, CA (51.00) | 82 | Santa Maria, CA (54.11) | ||
| 83 | Little Rock, AR (50.75) | 83 | Broken Arrow, OK (53.91) | ||
| 84 | Aurora, IL (50.68) | 84 | Davenport, IA (53.90) | ||
| 85 | Newport News, VA (50.44) | 85 | Lakeland, FL (53.85) | ||
| 86 | Springfield, MA (50.34) | 86 | Simi Valley, CA (53.77) | ||
| 87 | Rochester, NY (50.13) | 87 | Lynn, MA (53.13) | ||
| 88 | Montgomery, AL (49.80) | 88 | Burbank, CA (53.07) | ||
| 89 | Jersey City, NJ (49.50) | 89 | Allentown, PA (52.99) | ||
| 90 | Toledo, OH (48.26) | 90 | Fullerton, CA (52.62) | ||
| 91 | Buffalo, NY (47.45) | 91 | Hampton, VA (52.61) | ||
| 92 | Fayetteville, NC (46.98) | 92 | Coral Springs, FL (52.54) | ||
| 93 | Baton Rouge, LA (46.75) | 93 | Pasadena, CA (52.53) | ||
| 94 | Shreveport, LA (46.49) | 94 | Thousand Oaks, CA (52.35) | ||
| 95 | Yonkers, NY (46.09) | 95 | Norwalk, CA (52.13) | ||
| 96 | Mobile, AL (46.08) | 96 | Miami Gardens, FL (52.11) | ||
| 97 | Fort Lauderdale, FL (45.99) | 97 | Elgin, IL (52.08) | ||
| 98 | Birmingham, AL (42.83) | 98 | Torrance, CA (52.03) | ||
| 99 | Jackson, MS (40.88) | 99 | Berkeley, CA (51.98) | ||
| 100 | Newark, NJ (33.31) | 100 | Costa Mesa, CA (51.79) | ||
| 101 | Clearwater, FL (51.76) | ||||
| 102 | West Covina, CA (51.67) | ||||
| 103 | Mission Viejo, CA (51.63) | ||||
| 104 | Waukegan, IL (51.50) | ||||
| 105 | South Gate, CA (51.35) | ||||
| 106 | New Haven, CT (50.93) | ||||
| 107 | Dearborn, MI (50.43) | ||||
| 108 | Boca Raton, FL (50.37) | ||||
| 109 | Compton, CA (50.36) | ||||
| 110 | Inglewood, CA (50.25) | ||||
| 111 | Springfield, IL (50.14) | ||||
| 112 | Erie, PA (49.98) | ||||
| 113 | Downey, CA (49.86) | ||||
| 114 | El Monte, CA (49.75) | ||||
| 115 | El Cajon, CA (49.63) | ||||
| 116 | Hollywood, FL (49.27) | ||||
| 117 | Pompano Beach, FL (49.11) | ||||
| 118 | Stamford, CT (49.10) | ||||
| 119 | Brockton, MA (48.73) | ||||
| 120 | Santa Barbara, CA (48.43) | ||||
| 121 | Joliet, IL (48.42) | ||||
| 122 | Portsmouth, VA (47.58) | ||||
| 123 | West Palm Beach, FL (47.30) | ||||
| 124 | New Bedford, MA (46.22) | ||||
| 125 | Albany, NY (46.02) | ||||
| 126 | Waterbury, CT (45.85) | ||||
| 127 | Rockford, IL (45.18) | ||||
| 128 | Fall River, MA (45.11) | ||||
| 129 | Bridgeport, CT (44.80) | ||||
| 130 | Hartford, CT (44.63) | ||||
| 131 | Flint, MI (43.25) | ||||
| 132 | Paterson, NJ (43.24) | ||||
| 133 | Peoria, IL (41.89) | ||||
| 134 | Elizabeth, NJ (40.18) | ||||
| 135 | Miami Beach, FL (39.46) | ||||
| 136 | Dayton, OH (38.76) |
Economic indicators point to a strong housing market, but does that mean it’s a good time to buy a home? We consulted a panel of experts for their insight. Click on the panelists’ profiles below to read their bios and thoughts on the following key questions:
- Is now a good time to buy a home? What economic indicators should potential buyers be watching?
- Are foreign buyers driving up the cost of U.S. real estate? Which cities are most affected?
- How likely is it that the Federal Reserve will increase interest rates in the coming months? How will this impact the housing market?
- Why are Millennials still sitting out of the housing market? What can be done to increase homeownership rates for this cohort?
- In evaluating the healthiest housing markets, what are the top five indicators?
Alvin Chiang Ph.D. – Instructor, Department of Economics, Florida International University
Andrew Carswell Associate Professor, Family & Consumer Sciences, University of Georgia
Alvin Chiang Ph.D. – Instructor, Department of Economics, Florida International University
Andrew Carswell Associate Professor, Family & Consumer Sciences, University of GeorgiaWe evaluated those dimensions using 23 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the healthiest housing market.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.
Each city in our sample was categorized according to the following population-size guidelines:
- Large city: More than 300,000 residents
- Midsize city: 150,000 to 300,000 residents
- Small city: Fewer than 150,000 residents
Real-Estate Market – Total Points: 80
- Home Value Forecast: Full Weight (~5.16 Points)Note: This metric is based on Zillow’s Home Value Forecast, which predicts the Zillow Home Value Index one year from May 2019.
- Median Home-Price Appreciation: Full Weight (~5.16 Points)
- Average Number of Days Until a House Is Sold: Full Weight (~5.16 Points)
- Share of Homes Selling for a Gain: Full Weight (~5.16 Points)
- Share of Listings with Price Cuts: Full Weight (~5.16 Points)
- Share of ‘Underwater’ Homes: Full Weight (~5.16 Points)Note: This metric measures the share of homes with negative equity.
- Home Sales Turnover Rate: Full Weight (~5.16 Points)
- Ratio of Rent Price to Sale Price: Full Weight (~5.16 Points)
- Foreclosure Rate: Full Weight (~5.16 Points)
- Share of Foreclosure Re-sales: Half Weight (~2.58 Points)
- Share of Delinquent Mortgage Holders: Full Weight (~5.16 Points)
- Number of Bank-Held Homes for Every 10,000 Homes: Full Weight (~5.16 Points)Note: This metric refers to unsold Real Estate Owned - or REO - housing units.
- Vacancy Rate: Full Weight (~5.16 Points)Note: This metric was calculated as follows: Vacant Housing Units / Total Housing Units.
- Buy vs. Rent Breakeven Horizon: Full Weight (~5.16 Points)Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
- Share of Young Homes: Full Weight (~5.16 Points)Note: “Young Homes” refer to housing units built between 2010 and 2017.
- Building-Permit Activity: Full Weight (~5.16 Points)Note: This metric measures the number of unit permits pulled per 1,000 residents.
- Housing Affordability: Double Weight (~5.00 Points)Note: This metric measures home price as share of income.
- Maintenance Affordability: Full Weight (~2.50 Points)Note: This metric measures maintenance costs as share of income.
- Population Growth Rate: Full Weight (~2.50 Points)
- Job Growth Rate: Full Weight (~2.50 Points)
- Unemployment Rate: Full Weight (~2.50 Points)
- Underemployment Rate: Full Weight (~2.50 Points)
- Median Credit Score: Full Weight (~2.50 Points)
Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, Zillow, TransUnion, Chmura Economics & Analytics and Renwood RealtyTrac.
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