Zillow Names Hottest Housing Markets for 2016

SEATTLE, Jan. 12, 2016 /PRNewswire/ -- Today, Zillow® announced its predictions for the ten hottest housing markets in 2016. Topping the list is Denver, followed by Seattle and Dallas-Fort Worth, all of which are major tech towns – ideal for job growth. Other places that made the list are Utah markets Ogden and Salt Lake City, along with Omaha, Neb. and Boise, Idaho.

To determine which markets would be hot, Zillow looked at home value appreciation, low unemployment rates, and strong income growth. Omaha has the lowest unemployment rate of the ten hottest markets, at just 2.9 percent. Denver saw home values rise 16 percent in 2015, and Zillow is forecasting them to rise another 5 percent in 2016, along with Portland.

A strong and diverse economy is the driving force behind Richmond's high income growth, with government, finance, education, and manufacturing jobs robust in the area and expected to continue  in 2016. Boise, Ogden, Salt Lake City and Sacramento all have high forecasted home value appreciation; homes are expected to appreciate an average of about five percent over the next year.

Zillow's Top 10 Housing Markets for 2016:

1. Denver, Colo.
2. Seattle, Wash.
3. Dallas-Fort Worth, Texas
4. Richmond, Va.
5. Boise, Idaho
6. Ogden, Utah
7. Salt Lake City, Utah
8. Omaha, Neb.
9. Sacramento, Calif.
10. Portland, Ore.

"Trendy tech centers like San Francisco, Seattle and Denver hogged the spotlight in 2015. But this year, the markets that shine brightest will be those that manage to strike a good balance between strong income growth, low unemployment and solid home value appreciation," said Zillow Chief Economist Dr. Svenja Gudell. "As the job market continues to hum and opportunity becomes more widespread, the best housing markets are no longer limited to the coasts or one-industry tech towns. This year's hottest markets have something for everyone, whether they're looking for somewhere to raise a family or start their career."

Three variables influenced Zillow's hot market predictions: Zillow's Home Value Forecastⁱ, which forecasts the change in the Zillow Home Value Index over the next 12 months, recent income growthⁱⁱ, and current unemployment ratesⁱⁱⁱ. Those three variables were then scaled and combined to form a 'hotness score,' producing the top ten list.

About Zillow
Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

                                           
ⁱ The Zillow Home Value Forecast uses data from past home value trends and current market conditions, including leading indicators like home sales, months of housing inventory supply and unemployment, to predict home values over the next 12 months for the nation and for more than 250 markets across the country.
ⁱⁱ Incomes in this analysis were determined using Moody's Analytics estimates from the Census Bureau.
ⁱⁱⁱ Unemployment rates in this analysis were determined using Moody's Analytics estimates, from the Bureau of Labor Statistics, Local Area Unemployment Statistics.

SOURCE Zillow