Austin tops the list of cities with the biggest expected price increases over the next year, followed by Phoenix, San Diego, San Jose, and Salt Lake City
While no one can predict what will happen in the real estate market to change home prices, looking at the data we have from the past and present can help us prepare for what to expect in the future.
Researchers at Porch recently analyzed data from Zillow, Redfin, and the Census Bureau to find out which real estate markets are positioned to grow the most in the next year. The report, published on August 19, 2021, sheds light on the forecasted one-year change in home price for small, medium, and large metro areas. It also surfaces data about the previous one-year change in home price per, sale-to-list price ratio, and home-price-to-income ratio per area.
If you’re thinking about buying a home in the next year, this information can help you see where properties are gaining the most value and what budget you’ll likely need to enter the market in the fastest-growing areas.
Highlights of the rankings
Let’s look at some of the most eye-catching stats from the report. The full lists of cities that look like they’ll grow the most are below to review in detail.
Austin is the large city with the biggest expected jump in home price
Austin, Texas, came in first among the metros with 1,000,000 or more residents. After a 30.5% increase in median sale price over the past year, Austin is predicted to jump an additional 37% in the coming year. The current median home price is $458,885 and homes are selling at 109% of list price.
San Francisco has the widest gap between home price and household income
San Francisco came in at number 8 for anticipated price growth among large metros with a forecast for median sale price to jump 21.2% in the coming year. With a median yearly household income of $114,696 in the city and a current median home price of $1,255,661, homebuyers in the area are paying almost 10.95x their income to buy a home.
Nearby San Jose has similar statistics with a home-price-to-income ratio just slightly lower at 10.58x.
California and Texas dominate the top 10 for large cities
Cities in California and Texas account for 6 of the top 10 large cities with the most expected growth. Austin, Dallas-Fort Worth, San Diego, San Jose, Riverside, and San Francisco all make the list.
Which real estate markets are expected to grow the most?
Review the detailed lists for large, midsize, and small cities here. In addition to the forecasted one-year change in median home price, you’ll find the previous year’s change, current median home sale price, sale-to-list price ratio, median household income, and home-price-to-income ratio. The report came out on August 19, 2021.
Large cities – 1,000,000 or more residents
Midsize cities - 350,000 - 999,999 residents
Small cities - 100,000 - 349,000 residents
Hungry for more data? Stay up to date with monthly real estate market reports.
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