Staying on top of the latest real estate trends is one of the keys to success for any investor. It includes following up on the hottest housing markets. After all, it is possible to buy and sell real estate in a sluggish market, but it is a lot easier and profitable to do so in a thriving economy. Therefore, knowing which areas are the most likely to explode in the next few years should be at the forefront of your mind.
If you want to plan your investment strategy, here are the top 10 housing markets of 2020, according to a Realtor study.
What makes a hot real estate market?
- Affordability: To make a profit in real estate, you need to purchase a property without breaking the bank. Therefore, the hottest housing markets often have median home prices below the national average and moderate real estate taxes.
- Dynamic economy: If you want to rent or sell the property for a profit, the local economy must be thriving and the job market growing. Whether they appeal to retirees or young professionals, hot housing markets must be attractive for newcomers.
- Midsize cities: The hottest housing markets are not larger cities, like New York City or San Francisco, but smaller and more affordable urban areas. Some of them are located within easy distance from a pricey metropolis.
The hottest housing markets for 2020
- Boise, ID. Its dynamic job market and affordable housing prices attracts buyers priced out of neighboring California.
- McAllen, TX. With its low taxes and low home prices, the border town attract Millennials and new companies alike.
- Tucson, AZ. Besides being a favorite among retirees who appreciate its mild climate, Tucson also benefits from a thriving job market. Amazon recently opened a new fulfillment center in the city, creating over a thousand new jobs.
- Chattanooga, TN. Chattanooga benefits from a thriving food and art scene, and beautiful outdoor amenities. With its low cost of living, it attracts out-of-towners looking to relocate, especially young entrepreneurs.
- Columbia, SC. This Southern city is both an attractive college town and the capital of South Carolina, making it an excellent place to settle for young professionals.
- Rochester, NY. With home prices well below the US average and well-rated schools, New York’s third-largest metropolitan area is a favorite among young families priced out of the downstate cities.
- Colorado Springs, CO. Colorado Springs has a slightly higher housing costs and cost of living compared to the national average. However, it is a more affordable alternative to Denver, a favorite among Millennials.
- Winston-Salem, NC. Winston has low housing costs. Besides, it is located with easy traveling distance from other North Carolina hubs like Charlotte, Raleigh, or Durham. Therefore, it is a breeding ground for entrepreneurs and small businesses.
- Charleston, SC. A favorite among Southern cities, Charleston benefits from a dynamic job market,including in the medical field, the military, and the industrial sector. It also enjoys relatively affordable housing prices.
- Memphis, TN. Memphis has a rich history, a mild climate, a central location, and affordable cost of living. Therefore, Millennials and retirees are putting it on the list of the hottest housing markets of 2020.
What do you think will be the hottest housing markets of 2020?