Let’s get a few formalities out of the way. Yes, this is a list of the hottest single-family housing markets this spring. But, believe it or not, no, you shouldn’t assume San Francisco is number one and just stop reading. Not only is San Francisco not number one on this particular list, it didn’t even crack the top five!
As San Francisco grows more and more unaffordable as a place to live, a larger number of people are looking for other markets, specifically in the Pacific Northwest, to head to. So, while San Francisco is not on this list, it did have a direct effect in shaping how the list would look and what cities’ housing markets did make the top five.
According to HousingWire, the five markets that made the list, which was compiled by online real estate marketplace Ten-X, had a consistent combination of rising home prices, home appreciation, favorable affordability, and positive economic and demographic conditions for future demand. While the Pacific Northwest dominates the top of the list, Florida is also well represented as its housing market continues its post-recession recovery.
Fort Lauderdale, Fla. and Palm Beach County, Fla. are number five and four, respectively, on the list. Fort Lauderdale has dropped one rank from the previous list but thanks to a 3.1 percent increase in employment and a 7.7 percent employment increase in its professional/business services sector (the largest sector for the city), the city remained on the list. Fort Lauderdale also experienced an 8 percent increase in seasonally adjusted median sales that are now at $226,000. Palm Beach County saw home prices increase by 14.1 percent and also ranks in the top 20 nationally for home sales that start at $10 million.
Nashville, Tenn. took the number 3 spot on the list returning to the top five for the first time in a year. Median home prices in the southern city are up 23.6 percent from their prior peak and 11.6 percent year-over-year. Employment also grew by 6.2 percent and, despite worries that the city is overbuilding, houses remained affordable and the city experienced a population gain of more than double the national rate at 1.9 percent.
However, while it may not be San Francisco, the nearby cities of Portland, Ore. and Seattle, Wash. took the number two and number one spots on the list. Large numbers of San Francisco residents fleeing the city’s high prices have begun to migrate to both Portland and Seattle as a relatively cheaper alternative without having to sacrifice the lifestyle they enjoyed in the city by the bay.
To view the full list and read why each city landed in the spot it did, click the link below.
