Photo: Kumar Appaiah/Flickr
If you want to get in on the ground floor in of next year’s hottest real estate markets, move to Texas.
The Lone Star State houses four of the top 10 hottest US housing markets to watch in 2018 — El Paso, San Antonio, Fort Worth and Austin. That’s according to a report released today by the listing site Trulia.
To predict which markets were going to see some heat in 2018, Trulia studied the 100 most populated metros and looked for strong job growth, low vacancy rates and a high population of young households (under 35 years old).
With a median home value of $187,000, El Paso ranked fourth overall and was the highest ranking Texas metro on the index. The metro has a vibrant downtown artist community and is located near the Rio Grande, offering a wealth of outdoor activities.
El Paso is quickly gaining popularity with younger generations — particularly the Mission Hills neighborhood. The median age of El Paso residents is 33, and 24 percent of residents are single.
The US military and the University of Texas are among El Paso’s biggest employers.
San Antonio landed in the fifth position on the idex. And while the national homeownership rate increased “significantly” for the first time in a decade in 2017 to about 63 percent after hitting its lowest level since 1965, homeownership levels in San Antonio have been steadily on the rise over the last several years.
Some 65 percent of residents in San Antonio are homeowners and the metro’s healthy job market is a strong factor.
Job growth grew 2.2 percent year-over-year in 2017. The military, schools and the city are San Antonio’s major employers.
Tourism is a big enterprise for Fort Worth, which was sixth on the index. It attracts almost nine million visitors annually, and tourists flock to Fort Worth’s seven unique entertainment districts — each offering a myriad of food, entertainment and cultural choices.
The metro is located less than 20 miles away from the Dallas-Fort Worth International Airport, making travel to and from Fort Worth extremely convenient.
Fort Worth also has a strong job market. Many large companies, like American Airlines and Lockheed Martin Aeronautics, calling the metro home. And, just under 70 percent of residents are homeowners.
Texas’ capital city of Austin landed in the 7th position on the index. Austin’s vibrant downtown is a hotspot for live music, fine dining and the arts. Both the Austin Film Festival and the South By Southwest (SXSW) conference continue to attract visitors to Austin every year.
The median home value in Austin is $258,000, and just over 45 percent of the metro’s residents are homeowners. Despite Austin’s many draws, Millennial homeownership is lagging. Over the last year, the homeownership rate for Austin households under 35 years old rose one percentage point to 35 percent.
“The long-run potential for this generation to support housing consumption in the United States is big,” says Trulia in the report.
According to Trulia, other hot real estate markets to watch in 2018 were Grand Rapids, MI, Nashville, TN, Raleigh, NC, Columbus, OH, Madison, WI and Cincinnati, OH.
Click here to read the entire report.