Top 10 rising housing markets in 2021
Editor’s Note: This story originally appeared on SmartAsset.com.
According to the latest survey by the Federal Reserve Bank of New York, many Americans view housing as a preferable investment versus the stock market. Of those surveyed in 2020 and 2021, more than 90% would buy a house as their main residence instead of investing on the stock exchange and more than 50% would invest in a rental property on the stock exchange.
The high housing demand during the coronavirus pandemic is also evidenced by data from the US Census Bureau and the National Association of Realtors. From February 2020 to February 2021, new home sales increased 8.2% and existing home sales increased 9.1%.
In this study, SmartAsset identifies the top 10 emerging housing markets that led to the pandemic. This is SmartAsset’s fifth annual study of the top 10 emerging housing markets. View the 2020 version here.
We analyzed 321 cities and compared them using the following metrics: difference between population growth and housing unit growth, four-year change in average home value, and four-year change in average household income.
For more information on our data sources and how we put all of the information together to create our final rankings, see the Data and Methodology section at the end.
Below are the emerging housing markets in 2021
1. Oakland, California
Oakland, California is the fastest growing housing market in this study.
The population of this city grew by 2.88 percentage points faster than the number of residential units, making it 46th for this figure on our list. Oakland’s median household income rose 34.92% over the period, ranking fourth in the study.
2. Lehigh Acres, FL
Lehigh Acres is the first of two Florida cities in the top 10 (and one of only three of the top cities outside of California).
The population of this city grew by 11.53 percentage points faster than the number of residential units and is in first place in our study for this key figure. Lehigh Acres also has the highest four-year change in home value (79.95%), but falls outside the top quartile of the four-year change in median household income (20.53%).
3. Vallejo, California
Vallejo, California, has the fourth-highest change in average home value in four years of any city we analyzed, increasing 59.69% from 2015 to 2019.
This city’s population also grew 4.85 percentage points faster than the number of housing units, the 19th biggest change on our list.
4. Jurupa Valley, CA
Jurupa Valley’s population has grown 9.05 percentage points faster than the number of housing units and is number six on this list.
This city also has the 31st largest change in median residential property in four years (48.83%) and the 58th largest change in median household income (22.33%) in four years.
5. Richmond, California
Richmond, California has the ninth-highest increase in average home value of any city we analyzed, up 55.97% from 2015 to 2019.
This city also shows the 41st highest increase in household income in our study, increasing by 24.26% over the same period.
6. Hayward, California
Hayward, California has the fifth highest change in average home value, 59.41% over the four-year period from 2015 to 2019.
And this city also has the seventh largest increase in median household income, which has increased 33.26% over those four years.
7. Aurora, CO (tie)
Aurora, Colorado is the second of only three cities in our top 10 outside of California.
It has the 17th largest change in average home value in four years, up 53.36%. And the population of this city has grown 3.24 percentage points faster than the number of residential units, which are number 41 on our list.
7. Port St. Lucie, FL (tie)
Port St. Lucie is the second largest city in our top 10, which is located in Florida. It shows the 21st highest change in average home value within four years (51.13% increase from 2015 to 2019).
And the population of this city grew by 4.54 percentage points faster than the number of residential units during this period and is in 23rd place in this figure.
9. Moreno Valley, California
The population of Moreno Valley has grown 4.78 percentage points faster than the number of residential units and ranks 21st in our study.
And this California city also has the 27th largest change in average home value, up 49.78% in four years.
10. Santa Clara, California
Santa Clara, California completes the top 10 with a 53.50% increase in home value over the past four years, the 14th largest jump in this study.
And this city also has the 19th largest change in median household income, which is up 27.39%.
Data and methodology
To find the emerging housing markets, we looked at the data for the 321 US cities with more than 100,000 residents in 2019. We analyzed this information using the following three metrics:
- Housing demand. This is the difference in percentage points between population growth and the growth of residential units from 2015 to 2019.
- Increasing the value of your home. This is the percentage change in the median values for residential properties from 2015 to 2019.
- Income growth. This is the percentage change in median household income from 2015 to 2019.
The data for all metrics comes from the US Census Bureau’s 5-year American Community Surveys from 2015 and 2019.
First, we ranked each city on each metric. Then we determined the average ranking of each city and gave each metric the same weight. We created our final result from this average ranking.
The city with the highest average ranking received a score of 100. The city with the lowest average ranking received a score of 0.
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