Real estate website Zillow has its list of the top 10 hottest housing markets for 2018, and while Houston doesn't make the cut, the study does provide a sneak peek at which H-Town neighborhoods are likely to see a surge in popularity this coming year.
The Greater Third Ward takes the top spot, with an anticipated 6.8 percent increase in home value appreciation. It's followed by Spring Branch East (4.4 percent), Hidden Valley (4.0 percent), Willowbrook (3.0 percent), and the Willow Meadows–Willowbend area (2.7 percent).
Though Houston is missing from Zillow's top 10, two other Texas neighbors land on the list. Austin snags No. 6, with a home value forecast of 3.3 percent and a typical household income of around $71,000 (somewhat low compared to other cities, but remember the low cost of Texas living). But what really wows is the stats surrounding Austin's anticipated job growth: 47,430 jobs are projected to materialize next year. Zillow also points out that Austin has one of the lowest unemployment rates among large cities, even as its population is growing faster than other major metros (it was at 2.8 percent between 2015 and 2016).
Dallas-Fort Worth makes a good showing at No. 10 overall. The third-highest home value forecast (4.7 percent) and a whopping 142,084 jobs — by far the most in the top 10 — highlight its attractiveness to new residents.
To make its list, Zillow scaled six variables for the 50 largest U.S. metros and combined them to form a "hotness" score. The data included:
- Zillow’s home value and rent forecasts, which predict the change in median home values and median estimated rents over the next 12 months
- Income and population growth using ACS 2015 and 2016 one-year estimates
- Current unemployment rates from the Bureau of Labor Statistics
- Glassdoor's estimated number of job openings per person
San Jose, California, tops the list of hottest markets for 2018, mainly because home values in the Silicon Valley hub gained 17.4 percent over the past year — the fastest growth among the 50 largest metro areas — and Glassdoor estimates that San Jose has 0.036 job openings per person, which is the highest rate among large U.S. metros. It’s also the only market with a median household income above $100,000.
Seattle (No. 3); San Francisco (No. 5); and Portland, Oregon (No. 9) help the West Coast dominate, while two cities in North Carolina — Raleigh (No. 2) and Charlotte (No. 4) — join Denver and Nashville to complete the top 10.