The real estate industry took a massive hit this year thanks to the Covid-19 pandemic, however, these markets in the US are expected to thrive in the new year.
Based on current economic trends in parts of the United States, certain real estate markets are expected to thrive in the new year in what will likely be a stark juxtaposition to what a majority of the industry has witnessed this year as a result of the Covid-19 pandemic. The global health crisis has had an obvious impact on the economy, which thus has caused the housing market to decline.
However, as the pandemic begins to see a light at the end of the tunnel with all the prospective vaccines being released and the current president-elect Joe Biden offering promises of economic aid, these housing markets are expecting to make a major comeback as well in 2021. These market’s for the most part aren’t cheap, however, many agencies in these parts of the country are already seeing a heavy interest in clients wanting to leave their apartments to upgrade to a property that offers more of whatever they may have lacked within the past nine months of quarantine.
It’s also important to note that for the most part the industry is expected to recover more in the second half of 2021, as it’s expected that at this point a majority of the country will hopefully be vaccinated and certain businesses will be running normally again. Housing markets in major metropolitans are actually expected to decline as more individuals are projected to want something in a more open/suburban location, according to Chief economist Danielle Hale who works for Realtor.com, the website that keeps track of all real estate trends in the US.
“A lot of companies in bigger cities are offering workers the flexibility to work remotely, which is prompting a lot of people to want to relocate.”
Hale is one of the individuals who also helped compile the list of US markets that are expected to thrive the most in 2021, which is topped by Sacramento, California’s housing market. The average home price in the area is around $550,000, which compared to San Francisco (which is just 90 minutes away) is a great deal. Hale claims that because the city is so close to the Bay Area, but far enough to avoid the big city prices, this city will see a major influx in demand from clients. $500,000 can get, on average, a buyer a four-bedroom, three-bathroom, single-family home in the suburbs.
The second city which is expected to have a thriving market in 2021 is also in California right in the heart of Silicon Valley. San Jose, California is one of the nation’s most expensive metropolitans because it’s known as one of the tech capitals of America. Any major city that is known for its technological innovations/headquarters will always have a thriving housing market because the tech industry is vast and always developing. The average home price in San Jose is around $1.19 million.
Charlotte, North Carolina takes the third position, however, you won’t be spending millions on property here, as the average home price is expected to be around $368,000 in the new year. Charlotte in general is a bustling financial hub that is growing in appeal among the millennial generations thanks to a slew of innovative restaurants, good schools, and emerging tech scene. For just $250,000 an individual can score a four-bedroom, 2.5 bathroom home.
“The nation’s top markets of 2021 are tech hubs with strong job markets, state capitals where buyers can get more square footage for their money, and smaller cities.”
Boise, Idaho is next up on the list with an average home price of $445,00 and an anticipated home price increase of 9.1% in the new year. Boise is the capital of Idaho, and was ranked number one last year for the projected most successful housing market in 2020. This is due to the fact that a majority of Californians are migrating to the city to live a more land-locked mountainous life.
Seattle, Washington is expected to see a 9.7% increase in housing prices. Sticking with the trend of major tech metropolitans remaining relevant in the US housing market, Seattle is expected to continue to thrive in 2021. The local economies have remained relatively strong throughout the pandemic and the surrounding parks, schools, and cultural perks are all widely regarded as some of the best in the nation. Buyers can get a two-bedroom, one-bathroom town-home within the city for on average $350,000.
Phoenix, Arizona is another capital that made the list, as it equally appeals to millennial’s and retirees thanks to the heat, reasonable cost of living, and plethora of cultural activities to participate in. Phoenix is known for giving the west coast vibe without the California pricing; on average the homes sell for around $400,000. Harrisburg, Pennsylvania follows the same trend of being a successful capital city with a thriving housing market. The average home price doesn’t even hit $300,000, and being roughly three hours from NYC, Philadelphia, and Washington D.C. makes this city perfect for any new home buyer who enjoys domestic travel.
Oxnard, California, Denver, Colorado, and Riverside, California finish off the top 10 list, and all are relatively regarded as the cheaper alternative to Los Angeles. The overall consensus is that as the pandemic ends, and the economy begins to recover, millennials and retirees will begin to rebuild the housing market through their relocation’s to these bustling new hubs for real estate development.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.