In news that is likely to surprise no one, experts say Houston will be one of the nation's hottest housing markets.
According to the Q4 2020 Zillow Home Price Expectations Survey, real-estate experts, economists, and investment strategists say Houston will outperform the national housing market. The report, which was conducted by independent research company Pulsenomics, includes predictions about home-value growth in the largest 20 U.S. markets in 2021.
Houston ranked 12th overall, with 32 percent of experts saying the Bayou City will outperform the national average.
Also hardly surprising, Austin topped the survey as the No. 1 destination in 2021. Experts had previously predicted Austin’s housing market would be the hottest in 2020. By mid-December, when the median list price for homes in the Austin metro area had risen year-over-year by more than 23 percent — the biggest increase among the 50 largest U.S. markets — it was clear the Capital City would outpace all other large markets in 2020, according to the report.
Driving the housing growth in Austin are a number of factors, among them the seemingly immense exodus of tech companies and workers from the West Coast to Central Texas. This presumption is supported by the Zillow report, which notes San Francisco and Los Angeles land at the bottom of the 20-city list in terms of predicted housing growth this year, alongside New York City.
Even the New York Times recently noted the massive influx of techie San Franciscans moving to Central Texas, claiming Austin is their No. 1 relocation spot, with the paper saying it is the Texas city closest in spirit to the Bay Area and calling out recent news of growth in the local tech industry from such big-name players as Apple, Amazon, and Tesla.
The Zillow report notes another reason Austin’s housing market is the hottest is because, well, it’s hot here. In fact, it is mostly Sun Belt cities, including Austin, Phoenix, Tampa, and Nashville, that are expected to outperform the nation’s housing growth in 2021.
“These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, booming economies, and sunny weather,” Jeff Tucker, a Zillow senior economist, said in a release. “Record-low mortgage rates and the increased demand for living space, coupled with a surge of millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future.”
Meanwhile, Dallas-Fort Worth claimed the No. 6 spot, with 54 percent of real-estate experts saying the area will outperform the national home-value-growth average.