Top 10 rising housing markets

Updated

People take many factors into account when deciding where to buy a home. For some homebuyers access to good public schools is crucial, while for others safety is the top priority. Homebuyers may also want take into account whether their home value is expected to rise. But knowing where home values are expected to grow and how fast they are going to grow can be hard to predict. Below we rank 10 rising housing markets where, based on current data, home values can be expected to increase.

Find out: How much home can you afford?

In order to find the housing markets on the rise, we looked at data on population change, housing unit change, median income change and median home value change. To understand where we got our data and how we put it together to compile our rankings, see the data and methodology section below.

Key Findings

  • Consider Texas property – Texas cities claim half of the spots in our top 10. Colorado is the only other state has more than one city in the top 10. There are also another three Texas cities ranked between 11 – 25, giving the state a total of eight appearances in the top 25.

  • It may be better to rent in Michigan – Three of the 10 housing markets at the bottom of our list are in Michigan. They are Detroit, Lansing and Warren. It may make sense to rent here with home values falling.

Data and Methodology

In order to find the top 10 rising housing markets, we looked at data on 308 cities with a population over 100,000. Specifically we looked at:

Change in median home values. This is the percent change of median home values from 2011 to 2015. Data comes from the 2011 and 2015 U.S. Census Bureau's 5-Year American Community Surveys.
Change in median incomes. This is the percent change in individual median incomes. Data comes from the 2011 and 2015 U.S. Census Bureau's 5-Year American Community Surveys.
Difference between population change and housing unit change. This is the percentage point difference between the percent change in population and percent change of housing units from 2011 to 2015. Data is from the U.S. Census Bureau's 2015 5-Year American Community Survey. Here is an example: In Midland, Texas, the population grew by 12.78% and the number of housing units grew by 5.71%, thus the difference between them is 7.07%.

We ranked each city across each of the three metrics giving equal weight to each metric. Next we found the average ranking for each city. Finally we scored each city based on its average ranking. The city with the highest average ranking received a score of 100 and the city with the lowest average ranking received a 0.

Questions about our study? Contact us at press@smartasset.com.
Photo credit: ©iStock.com/Photobuay

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