- A new Zillow report lays out the US cities where property values are expected to rise in 2021.
- Austin is expected to reign as the nation’s hottest housing market for the second consecutive year.
- Forecasts like Zillow’s are useful for both individuals on the hunt for primary residences and real-estate investors.
- Visit Business Insider’s homepage for more stories.
Despite home prices hitting record highs across the country, there are still some US cities where property values are expected to rise even more in 2021.
Most of those cities are in the Sun Belt, according to new Zillow research. The online real-estate marketplace collected data and made predictions about the places it believes will be the hottest housing markets of 2021. Spots in Florida, Texas, and Colorado made the list.
The Sun Belt, the stretch of about 15 states across the southern US, from Virginia and Florida in the east to southern California in the west, earned its moniker for its balmy climate and its reputation for growth in both population and economic metrics.
A panel of real estate experts and economists surveyed by Zillow projected that home values in five metropolitan areas — including Denver and Tampa — are expected to grow the most in 2021.
Such forecasts are useful for both individuals on the hunt for primary residences and real-estate investors who might want to either purchase and resell a property or invest in one to rent out for passive income. The potential for future home-price increases is particularly important for those making decisions about where to buy real estate.
Pricey areas on both coasts, like New York and San Francisco, are predicted to fare the worst against the national average, according to Zillow.
Claiming first place in the ranking for the second consecutive year is Austin, the Texan capital that is experiencing a deluge of residents from both the Big Apple and the Bay Area as major companies and big-name executives either relocate or open outposts there.
Here are the five cities whose housing markets are predicted to perform the best in 2021.