20 cities with the hottest housing markets this summer

If you want to buy a home, then you probably shouldn't spend your summer days idly lying on a beach or at the pool. For 2017, increasing temperatures are coinciding with a scorching hot housing market.

"This upward trend continues very strongly with unemployment down and job creation rising," said Sean Conlon, of CONLON/Christie's International Real Estate in Chicago. "The younger, college-educated generation is relocating to the urban areas, and we are seeing a reverse of trends in which... millennials seem to want to own homes as much as previous generations did."

To help you find the right location for your next home, GOBankingRates determined the 20 housing markets that will be the hottest this summer. Various factors sourced from Zillow were taken into consideration — including profitability, home value projections, inventory data, population and the state of the local job market — to determine the health and sustainability of each market.

Click through to see which cities have the hottest housing markets

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20 cities with the hottest housing markets this summer
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20 cities with the hottest housing markets this summer

20. Pueblo, Colo.

  • Percent of homes sold for gain: 91.81
  • Percent of homes with increasing value: 88.04
  • Number of homes available for sale: 346
  • Population: 109,412
  • For sale inventory as percentage of population: 0.32
  • Market health index: 9.071

Pueblo is a small city situated on the Arkansas River, two hours south of Denver and 45 minutes south of Colorado Springs. Once known for steel production, today the city is undergoing a renaissance and becoming known for its multicultural and creative communities. If you want to buy a house, your timing in any hot housing market is key.

These revitalization efforts, along with low crime, unemployment at 3.2 percent and 1 percent year-over-year job growth in April 2017, according to the Bureau of Labor Statistics (BLS), have caused Pueblo’s housing market to heat up. The median home price in Pueblo is $146,250, and the year-to-year rise in price has only been 1 percent. Zillow gave the Pueblo metro area a value of 9.4 out of 10 on its Market Health Index.

Photo credit: Getty

19. Fremont, Calif.

  • Percent of homes sold for gain: 100
  • Percent of homes with increasing value: 82.59
  • Number of homes available for sale: 140
  • Population: 232,206
  • For sale inventory as percentage of population: 0.06
  • Market health index: 7.380

Fremont is the largest suburb in the San Francisco Bay Area. But, it can be a more affordable option than San Francisco, which sits about an hour's drive to the west. Fremont’s median house price is $920,000, compared to over $1 million in San Francisco. In the last year, it has seen a 7 percent year-over-year rise in median sales price.

See: You'll Need This Much Money to Live Comfortably in San Francisco

Fremont has a relatively low crime rate and a healthy economy based in technology, with Silicon Valley being only 20 miles away. The unemployment rate in April 2017 was 3.1 percent and year-over-year job growth was 3.1 percent, according to the BLS. Three-quarters (76 percent) of residents in Fremont are homeowners, and the median household income is $98,452.

Photo credit: Getty

18. Rancho Cucamonga, Calif.

  • Percent of homes sold for gain: 95.28
  • Percent of homes with increasing value: 93.13
  • Number of homes for sale: 290
  • Population: 175,236
  • For sale inventory as percentage of population: 0.17
  • Market health index: 7.026

Rancho Cucamonga is located just under 40 miles east of Los Angeles, tucked between Upland and Fontana in San Bernardino County. Its housing market is heating up under the hot California sun. Home values have increased 5.9 percent over the last year, and Zillow predicts prices will rise 3.3 percent within the next year.

The median home value in Rancho Cucamonga is $467,900, which is slightly more expensive than in neighboring city Riverside. Its median income is $77,396, with a 4.7 percent unemployment rate and job growth of 1 percent. The majority of residents, 79 percent, are homeowners. Rancho Cucamonga received a walk score of only 38 out of 100, so having a car could be beneficial.

Photo credit: Getty

17. Grand Prairie, Texas

  • Percent of homes sold for gain: 95.83
  • Percent of homes with increasing value: 91.49
  • Number of homes for sale: 127
  • Population: 187,809
  • For sale inventory as percentage of population: 0.07
  • Market health index: 7.434

Located in the Dallas-Fort Worth area, Grand Prairie has received a market temperature of “hot” from Zillow. Its home values have increased by a whopping 13 percent over the last year, and they are expected to rise 4.2 percent within the next year. Homeowners-to-be can take steps to ensure they save money during the homebuying process. The median home price in Grand Prairie is $229,200.

The median list price per square foot in Grand Prairie is $98, which is more than $30 less than that of Dallas, which is 13 miles away. Grand Prairie's unemployment rate is 3.8 percent, and the area experienced 3 percent job growth. The reasonable housing prices, healthy economy and cost of living are attracting millennials, causing the median age of residents to be 32.

Photo credit: Getty

16. Oakland, Calif.

  • Percent of homes sold for gain: 100
  • Percent of homes with increasing value: 89.42
  • Number of homes available for sale: 265
  • Population: 419,267
  • For sale inventory as percentage of population: 0.06
  • Market health index: 6.612

Situated directly across the bay from San Francisco and next to Berkeley, Oakland is another smoking hot Bay Area city that has benefited from the thriving technology industry. The housing market has experienced an 8 percent year-over-year rise in median sales price, which is expected to continue as inventory remains tight in one of the nation’s most competitive regions.

The median sale price in Oakland is $650,000, with an average price per square foot of $534. A healthy economy — 3.1 percent unemployment and 2 percent job growth — and a variety of quality schools makes Oakland an attractive place to live. A walk score of 69 means you can leave the car at home. Plus, Oakland is one of the best cities to score your dream job, found a separate GOBankingRates study.

Photo credit: Getty

15. Oceanside, Calif.

  • Percent of homes sold for gain: 93.87
  • Percent of homes with increasing value: 94.57
  • Number of homes available for sale: 256
  • Population: 175,691
  • For sale inventory as percentage of population: 0.15
  • Market health index: 7.597

Located in San Diego County, the coastal city of Oceanside has a red-hot housing market. Home values have risen 9 percent in the last year, and the upward trend is expected to continue. The median sale price for a home in Oceanside is $479,000. Unemployment was a low 3.8 percent and job growth was 1.3 percent.

Also See: The Cost to Live in These Luxurious Beach Towns

A quintessential beach town, Oceanside offers plenty of outdoor activities year round, including surfing, bike riding, skateboarding and boating. The cost of living is 30 percent higher in San Diego than the national average, but in exchange you are treated to a moderate climate with an average temperature of 70 degrees.

Photo credit: Getty

14. Boston

  • Percent of homes sold for gain: 98.52
  • Percent of homes with increasing value: 89.52
  • Number of homes available for sale: 700
  • Population: 667,137
  • For sale inventory as percentage of population: 0.10
  • Market health index: 7.278

Boston combines a progressive atmosphere with a history deeply rooted in the Revolutionary War. The median age of residents is 32, and the influx of millennials — due to a strong STEM (science, technology, engineering and math) job market — has caused the mercury to rise on the housing scene. Home values have increased by a stunning 9.9 percent over the last year, and Zillow predicts they will rise 3.7 percent within the next year. The median listing price for a home is $688,250.

With a robust economy, Boston’s median income is $54,250, the city had 1.6 percent year-over-year job growth in April 2017. It's also rated one of the best cities to get around by foot, with a walk score of 80. If your feet get tired, you can always hop on the T, Boston’s extensive public transportation system.

Photo credit: Getty

13. Salem, Ore.

  • Percent of homes sold for gain: 95.89
  • Percent of homes with increasing value: 98.37
  • Number of homes available for sale: 472
  • Population: 164,549
  • For sale inventory as percentage of population: 0.29
  • Market health index: 6.608

Situated along the Willamette River, Salem has green space every which way you turn — and it's a golf lover’s paradise. The area consists of two counties in western Oregon, Marion and Polk, and the housing market in the entire region is sizzling hot.

The median listing price for homes is $259,900. However, home values have risen 13.3 percent over the last year and are expected to increase by another 4.3 percent over the next year. You can see why; the state capital of Oregon offers many recreational, cultural and natural amenities, including an extensive 1,600-acre park system. The city had a 3.7 percent unemployment rate and a 1.8 year-over-year job growth rate in April 2017, according to the BLS.

Photo credit: Getty

12. St. Paul, Minn.

  • Percent of homes sold for gain: 89.60
  • Percent of homes with increasing value: 97.61
  • Number of homes available for sale: 367
  • Population: 300,851
  • For sale inventory as percentage of population: 0.12
  • Market health index: 8.801

Akin to an East Coast city with its quaint neighborhoods and Victorian houses, this Midwestern borough is quickly warming up as millennials discover the lower cost of living compared to coastal cities. The median age of residents is 34, and over half — 59 percent — of St. Paul citizens are homeowners.

Don't Miss: How Much Home You Can Buy for $300,000 in Every State

Home prices have only risen by 2 percent in the last year and though further increases are expected, the amount is below the national average of 7.3 percent. The median sale price is $193,848, which is less than Minneapolis, St. Paul’s twin city across the Mississippi River, which has a median sale price of $226,750. April 2017 job growth was 1.5 percent year over year, and unemployment stood at 3.3 percent. 

Photo credit: Reuters 

11. Raleigh, N.C.

  • Percent of homes sold for gain: 94.37
  • Percent of homes with increasing value: 94.1
  • Homes available for sale: 1066
  • Population: 451,066
  • For sale inventory as percentage of population: 0.24
  • Market health index: 8.668

Raleigh lies between the Atlantic coast and Blue Ridge Mountains, and combines modern urban living with a southern flair. A strong market health index rating makes Raleigh a seller’s paradise, which is evident in the data from Zillow. Home values have increased by 8.2 percent in the last year, and they are expected to continue on an upward trend of 3.7 percent within the next year.

Raleigh’s median home listing price of $315,000 is a middle ground for the metro area; less expensive than Chapel Hill but costlier than Durham. A healthy local economy — the median income is $55,398 — has contributed to the rising home prices. Job growth was 2.6 percent due to the area’s major industries, including high-tech research, healthcare and government. Its unemployment rate was 3.7 percent as of April 2017. 

Photo credit: Getty

10. Dallas

  • Percent of homes sold for gain: 96.6
  • Percent of homes with increasing value: 90.91
  • Homes available for sale: 2176
  • Population: 1,300,090
  • For sale inventory as percentage of population: 0.17
  • Market health index: 8.687

Though roots are firmly planted in Texas pride, Dallas has morphed into a cosmopolitan city filled with trendy restaurants, bars and boutiques — and a healthy job market. Job growth was 3 percent and unemployment was 3.8 percent.

Dallas’s housing market has earned a heat index score of “scorching,” as home values have risen by a whopping 14.5 percent over the last year, nearly double the national average of 7.3 percent. The upward trend is expected to continue. The median listing price is $430,000, and the vast area offers numerous housing options. 

Photo credit: Getty

9. Grand Rapids, Mich.

  • Percent of homes sold for gain: 96.48
  • Percent of homes with increasing value: 95.29
  • Homes available for sale: 228
  • Population: 195,097
  • For sale inventory as percentage of population: 0.12
  • Market health index: 8.035

The western edge of the Grand Rapids region sits at the Lake Michigan shoreline and beaches, which helps to make it a popular destination for homebuyers. Grand Rapids' affordability factor is a strong draw. It's also in a state where people are least likely to live paycheck to paycheck.

The median listing home price is $219,000, and Zillow has given the area an impressive 8.9 out of 10 ranking on its Market Health Index — burning hot. Home values have increased by 8.5 percent over the last year, and they are predicted to rise 3.1 percent within the next year. Job growth for Grand Rapids was 2.2 percent, and unemployment was 2.4 percent in April 2017. 

Photo credit: Getty

8. Portland, Ore.

  • Percent of homes sold for gain: 99.48
  • Percent of homes with increasing value: 94.58
  • Homes available for sale: 1078
  • Population: 632,309
  • For sale inventory as percentage of population: 0.17
  • Market health index: 8.024

If you’re looking for a laid-back locale with plenty of character, green space, outdoor activities and bike lanes, then Portland might be the city for you. Located in the Pacific Northwest, the Portland metro area is sizzling, thanks to the tech boom that has taken up residence along the entire West Coast. Keep in mind, however, that Portland is also one of the most expensive zip codes in the U.S.

The median sale price for a home in Portland is $405,000, but the area has experienced a 5 percent year-over-year rise in median sale price --and it's expected to continue. The average price per square foot has increased 13 percent in the last year and currently sits at $294. The perks might be well worth the price, however. Along with 10,000 acres of public parks, Portland had 1.6 percent job growth and 3.4 percent unemployment, according to the BLS. 

Photo credit: Getty

7. Colorado Springs, Colo.

  • Percent of homes sold for gain: 95.44
  • Percent of homes with increasing value: 97.4
  • Homes available for sale: 826
  • Population: 456,568
  • For sale inventory as percentage of population: 0.18
  • Market health index: 8.880

Nestled at the foot of the Rocky Mountains, Colorado Springs is an easygoing city with a small downtown area that exudes friendliness. The metro area's housing market is boiling over due to the vibrant economy. Along with being a technology and cybersecurity hub, Colorado Springs has officially gained the moniker of Olympic City, USA. It's also the best city in Colorado to buy a home.

Read More: Don’t Fall for These Tricks When Buying a Home

The median sale price for a home in the Colorado Springs area is $250,000. Home prices have seen a 7 percent year-over-year increase, and the trend is expected to continue. More than half — 68 percent — of residents are homeowners, and the area historically has a low crime rate. Job growth was positive at 1.7 percent for April 2017, and unemployment was 2.5 percent for the same month, according to the BLS. 

Photo credit: Rich Reid

6. Nashville, Tenn.

  • Percent of homes sold for gain: 96.83
  • Percent of homes with increasing value: 95.96
  • Number of homes available for sale: 1,540
  • Population: 654,610
  • For sale inventory as percentage of population: 0.24
  • Market health index: 9.425

If music is Nashville's first language, then the housing market must be its second because its residential trends are fiery hot. Zillow gave the Nashville metro area a Market Health Index rating of 9.6 out of 10. Home values skyrocketed by 13 percent over the last year, and another 3.2 percent rise is expected within the next year. The median home listing price is $324,900.

Nashville metro is the largest metropolitan area in Tennessee, and it includes Davidson, Murfreesboro and Franklin counties. The local economy is booming with a median household income of $45,038, a 3.5 percent job growth rate and a 2.9 percent unemployment rate. Over half of Nashville’s residents, 56 percent, are homeowners.

Photo credit: Getty

5. Denver

  • Percent of homes sold for gain: 98.39
  • Percent of homes with increasing value: 94.78
  • Number of homes available for sale: 1,208
  • Population: 682,545
  • For sale inventory as percentage of population: 0.18
  • Market health index: 9.182

Kicking off the top five of the hottest housing markets this summer is Denver. Located at the base of the Rocky Mountains, this city's housing market is on fire. Zillow ranked Denver one of the top regions for market health. Home values have increased by 9.4 percent over the last 12 months, and another 3.5 percent growth is expected within the next year. The median home listing price is $435,880. Homebuyers who want in on this red-hot housing market should make sure they're financially ready to buy a home.

The economy and amenities make Denver an ideal place to live. Job growth was 2.1 percent in April 2017, and unemployment was 2.1 percent, according to the BLS. The Denver metro area — which includes Denver, Aurora and Lakewood — has a walk score of 56. Although there are a variety of outdoor activities available to the progressive-minded community, Denver is probably known best as a hub for devout ski and snowboard enthusiasts. 

Photo credit: Getty

4. Arlington, Texas

  • Percent of homes sold for gain: 99.1
  • Percent of homes with increasing value: 96.93
  • Number of homes available for sale: 342
  • Population: 388,125
  • For sale inventory as percentage of population: 0.09
  • Market health index: 8.962

Sandwiched between Grand Prairie and Fort Worth, Arlington is part of the red-hot Dallas-Fort Worth housing market that shows no signs of cooling down. The most affordable city in the metro region, the median home listing price for Arlington is $199,900, which comes in under Grand Prairie, Dallas and Fort Worth.

Arlington has impressive numbers across the board. Home values have risen by 10.4 percent — a further gain of 3.9 percent is expected over the next year. The median household income is $52,072, and 69 percent of residents are homeowners. Year-over-year job growth was 3 percent in April 2017, and unemployment was 3.8 percent, according to the BLS.

Learn More: 6 Reasons Why Women Are Struggling to Buy a Home

Photo credit: Getty

3. Seattle

  • Percent of homes sold for gain: 98.08
  • Percent of homes with increasing value: 97.41
  • Number of homes available for sale: 610
  • Population: 684,451
  • For sale inventory as percentage of population: 0.09
  • Market health index: 9.684

Located in the Pacific Northwest, the metropolitan city of Seattle is bordered by nature at every turn — water, mountain, evergreen forests and thousands of acres of parkland. Combine that with a booming tech industry, progressive mindset and a walk score of 71, and you can see why the local housing market has become torrid hot. The median home listing price is $630,000.

"The population of Seattle continues to grow, which affects the already booming real estate market," said Ally Wangsness, a broker at Best Choice Realty, LLC in Seattle. "During the summer and toward the end of the year, prices most likely will continue to rise due to high demand and low supply of homes and condos."

Seattle’s home values have shot up 12.9 percent over the last year. However, the rising prices are indicative of a thriving economy. The median income in the metro area is $67,252. Jobs have grown by 2.7 percent in April 2017, and unemployment for the same month was 3.4 percent. 

Photo credit: Getty

2. Aurora, Colo.

  • Percent of homes sold for gain: 98.86
  • Percent of homes with increasing value: 98.57
  • Number of homes available for sale: 376
  • Population: 359,407
  • For sale inventory as percentage of population: 0.10
  • Market health index: 9.319

The second hottest city this summer on GOBankingRates' list is Aurora, a region that is part of the Denver, Aurora, Lakewood metro region. Not a mere sidekick to neighboring Denver, the suburb has much to offer on its own. Along with a thriving arts community and top quality healthcare, Aurora is often heralded for its outdoor recreation facilities and healthy lifestyle atmosphere.

Then there’s the economy. Aurora’s median home listing price of $314,000 is over $150,000 less than that of Denver’s $489,900. Aurora’s sale prices are also rising at a faster rate than those in Denver; 11.2 percent versus 10.3 percent, respectively. Aurora's job growth was 2.1 percent in April 2017, and unemployment was 2.1 percent.

Photo credit: Getty

1. Plano, Texas

  • Percent of homes sold for gain: 99.2
  • Percent of homes with increasing value: 98.25
  • Homes available for sale: 398
  • Population: 283,558
  • For sale inventory as percentage of population: 0.14
  • Market health index: 9.433

The absolute hottest housing market this summer is in Plano, situated 20 miles northeast of Dallas and part of the Dallas-Fort Worth metropolitan area. Plano’s affluent hub of many corporate headquarters, including Frito-Lay, FedEx Office and Dr Pepper Snapple Group, distinguishes it from its big city neighbor and also provides for a booming economy and housing market.

The average home listing price is $523,873. The BLS reported that job growth in April 2017 was 3.2 percent, and unemployment stood at 3.8 percent.

Named for the flat plains that make up the area, Plano has vast green spaces, park and recreation facilities, and numerous amenities for outdoor activities, including biking and running trails. The relatively low-crime area is ideal for raising a family, as 86 percent of residents are homeowners and the median household income is $85,929.

Up Next: 6 Financial Reasons to Buy a Home Right Now

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Methodology: Cities were ranked according to three factors: 1) Percentage of homes sold for gain as of April 2017, sourced from Zillow; 2) Percentage of homes with increasing values as of April 2017, sourced from Zillow; 3) For sale inventory as a percentage of the city population as of April 2017, sourced from Zillow and Sperling's Best Places; and 4) Zillow's Market Health Index. These four factors contributed to a final score that determined each city's ranking.

This article originally appeared on GOBankingRates.com: 20 Cities With the Hottest Housing Markets This Summer

More from GO Banking Rates:
How Much Home You Can Buy for $300,000 in Every State
Top 20 Cities Where Home Prices Are Skyrocketing
6 States With the Biggest Real Estate Bubbles

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