In search of affordability, homebuyers in 2020 will move inland and away from expensive coastal cities, according to realtor.com’s analysis of the 100 largest metros. Nine of 2020’s hottest markets are not on the coast, a major shift from 2019, when four out of 10 markets were on or near the water.
“Many of the markets on this year’s list are late bloomers in the current housing cycle, meaning they still have plenty of inventory and prices are within reach — a rare combination in recent years,” said George Ratiu, senior economist at realtor.com. “Additionally, a number of the top markets in 2020 are welcoming an influx of buyers from nearby large cities that have become crowded, expensive and lack sufficient inventory.”
Topping next year’s housing markets list is Boise, Idaho, which jumped from the No. 8 position last year. The city is seeing an influx of out-of-state buyers, especially from far pricier California. Boise was followed by McAllen, Texas; Tucson, Arizona; Chattanooga, Tennessee; Columbia, South Carolina; Rochester, New York; Colorado Springs, Colorado; Winston-Salem, North Carolina; Charleston-North Charleston, South Carolina and Memphis, Tennessee.
Many of the markets on the list are smaller cities that are handling overflow from nearby larger cities that have become crowded and unaffordable. Others are university towns, and others are luring retiring baby boomers seeking warmer climates and lower taxes.
“As a whole, millennials are driving the housing market, but what’s interesting in this year’s list is that not all of our cities fall into that category. In fact, only half of this year’s top 10 are millennial markets and the other half are being driven by retirees and mid-lifers leaving more expensive coastal cities,” Ratiu added.
In the top 10 markets, home sales are expected to increase by 2.4% and prices by 3.1% on average year-over-year. This is in contrast to a 1.8% percent decrease in home sales and a 0.8% percent increase in sales prices nationwide, realtor.com said.
