Realtor.com recently released its 2021 housing market outlook and then followed that report with its Top 10 Housing Markets of 2021.
First, let’s take a quick look back at 2020. In late 2019, Realtor.com had pegged the Boise area as the nation’s top real estate market. Their prediction was made before the COVID-19 pandemic. Interestingly, for those of us who live here in the valley, it seems their prediction came true as a shortage of inventory, record-low interest rates, and huge demand fueled a housing surge that continues now and will continue next year.
Of the top ten metro areas expected to be leading real estate markets in 2021, seven of the ten are either established or growing tech hubs. Half of those on the list are state capitals as well. Only one of the cities has a median list price lower than the national median of $348,000, but are still lower than Los Angeles, New York, and the San Francisco Bay area.
People are leaving the more expensive cities for these lower-priced areas as remote work has become a standard for many organizations due to the pandemic. The Realtor.com article says these markets are anticipated to have higher price growth and more sales than the rest of the country. Median home sale prices are expected to rise by nearly 7% compared with 5.7% nationally. Sales are expected to increase 13.1% annually versus 7% on the national level.
Danielle Hale, Chief Economist at Realtor.com, had this to say, “the housing markets in tech towns are thriving because that industry is doing well.” She continues, “a lot of companies in the Bay Area have given workers the flexibility to work remotely, and many of the markets on our list are the places that tech workers are leaving the Bay Area to relocate to.”
Hale’s team determined the ranking by factoring in past sale prices, number of sales, the rate of new construction, and previous and anticipated economic, household, and income growth in the 100 largest metropolitan areas. Metro areas include the central city and other nearby towns and the urban regions (e.g., the Boise metro includes Meridian, Nampa, Caldwell, etc.).
The Top Ten Housing Markets for 2021
- Sacramento, CA
- San Jose, CA
- Charlotte, NC
- Boise, ID
- Seattle, WA
- Phoenix, AZ
- Harrisburg, PA
- Oxnard, CA
- Denver, CO
- Riverside, CA
As you can see, the Boise area dropped to the number four position for 2021. With its burgeoning tech sector, the site has attracted millennial and Gen X workers. Additionally, retirees are moving here as they can sell their homes in more expensive areas and buy lovely homes for less here in Boise, allowing them to save the proceeds from their first house’s sale.
With an up-and-coming food and arts scene and unlimited recreational opportunities, it’s easy to see why Boise is in the top five. Realtor.com was pretty spot on with its prediction for 2020, and it will be interesting to see how they fare in 2021. All indications are that the 2021 housing market will be bustling once again in Boise.
Photo Credit: iStock.com/peeterv
