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The 9 Hottest New Home Markets in the U.S.

The 9 Hottest New Home Markets in the U.S.

Both the economy and the housing market have recovered from the 2008 recession and housing market crash. In fact, both areas have seen steady growth. An improved job market, low interest rates, and higher demand for homes than available listings have allowed home prices to climb. There were fears of a cool-down, but to this point, the markets have remained hot.

The hottest new home markets in the U.S. might surprise you. Major cities such as Chicago and New York are among the leaders in population decline; the top five markets are in smaller northwestern cities, which is a reversal of the migration trend to the eastern and central areas of the South. Atlanta, Austin, and Dallas are still popular areas, but the flood of recent transplants has inflated the housing market, and now the flood is more of a trickle. In general, the overall trend in housing shows migration from areas with high state and local taxes (SALT) to areas with lower ones. People are leaving the East and West Coasts and heading to the interior of the country, and businesses are doing the same.

If you work in the contracting, house flipping, or home remodeling industry, you may want to consider these hot home markets for their abundant economic opportunities.

Ogden, Utah

Located in the northern part of the state, Ogden is surrounded by picturesque scenery. The mountains in the area are home to many ski resorts and outdoor activities. Utah natives and people from out of state alike have been flocking to the area because of its low home prices and cost of living.

  • Median list price: $337,450
  • One-year change in list price: 13.5%
  • Sale-to-list price ratio: 102.3%
  • Average age of inventory: 44 days
  • Projected one-year change in home value: 7.8%

Boise, Idaho

Boise is seeing an influx of former California residents looking for more affordable housing. The area is turning into a smaller version of Silicon Valley. Tech companies and start-ups are choosing the Gem State to set up shop because of the lower rents and cost of doing business. The tech jobs are popular among millennials, who are the largest group of homebuyers right now.

  • Median list price: $323,633
  • One-year change in list price: 9.1%
  • Sale-to-list price ratio: 99.3%
  • Average age of inventory: 47 days
  • Projected one-year change in home value: 9.2%

Spokane, Washington

Because of Seattle’s high home prices, people are looking elsewhere for cheap homes. Home prices in Spokane are still affordable, but they’re on the rise. The demand in Spokane is outpacing the supply, causing a faster-than-normal rise in home value, but the market there is still good and affordable.

  • Median list price: $270,500
  • One-year change in list price: 12.0%
  • Sale-to-list price ratio: 98.8%
  • Average age of inventory: 56 days
  • Projected one-year change in home value: 7.5%

Salt Lake City, Utah

The capital of Utah has long been a destination for people seeking good homes at good prices. The state has a business-friendly policy that draws job creators in; for example, the dietary supplement industry has made Utah home recently, creating a strong job market.

  • Median list price: $373,754
  • One-year change in list price: 4.8%
  • Sale-to-list price ratio: 102.4%
  • Average age of inventory: 47 days
  • Projected one-year change in home value: 5.6% 

Salem, Oregon

Notice that the top five cities on this list are in the same area—the northwestern part of the country is red-hot right now. Salem, Oregon, is getting the spillover from Portland, where prices have risen too high for the average buyer. Buyers are instead looking toward the strong job and housing markets in the capital city of Salem.

  • Median list price: $319,213
  • One-year change in list price: 5.4%
  • Sale-to-list price ratio: 98.8%
  • Average age of inventory: 55 days
  • Projected 1-year change in home value: 4.1%

Killeen, Texas

The Texas market has been hot for years. Businesses and homebuyers have been moving down there for quite a while. The major destinations of Dallas/Fort Worth, Austin, and Houston are still popular, but they’re starting to cool off. The cost of living there is adjusting to the population rise. Killeen, which is in the central part of the state, is home to Fort Hood. It’s close enough to Austin that it’s becoming a commuter town with cheaper real estate.

  • Median list price: $190,717
  • One-year change in list price: 9.3%
  • Sale-to-list price ratio: 99.4%
  • Average age of inventory: 65 days
  • Projected one-year change in home value: 3.8%

Provo, Utah

Provo is the third entry for Utah in the list. It’s close enough to Salt Lake City for residents to commute there or visit. Brigham Young University calls Provo home, so there will always be a job market in the higher education sector.

  • Median list price: $357,246
  • One-year change in list price: 2.6%
  • Sale-to-list price ratio: 101.0%
  • Average age of inventory: 49 days
  • Projected one-year change in home value: 5.6%

Grand Rapids, Michigan

The Midwest has one representative on the list: Grand Rapids. Michigan as a whole is seeing a resurgence in population after years of decline. The growth is slow, but it’s still growth. Like Detroit, Grand Rapids is on the rise. The city has a large millennial population looking to buy their first homes on the cheap.

  • Median list price: $257,270
  • One-year change in list price: 7.3%
  • Sale-to-list price ratio: 97.5%
  • Average age of inventory: 66 days
  • Projected one-year change in home value: 5.4%

Memphis, TN

The entire state of Tennessee is seeing growth. Take one trip through the winding hills and mountains of the rural areas, and you’ll know why. Memphis has some of the most affordable houses on this list. FedEx, Auto Zone, Service Master, and St. Jude’s Children’s Research Hospital call Memphis home. The job market is sure to remain strong for the foreseeable future.

  • Median list price: $193,800
  • One-year change in list price: 8.6%
  • Sale-to-list price ratio: 97.3%
  • Average age of inventory: 61 days
  • Projected one-year change in home value: 3.4%

The statistics used in this list were sourced from Zillow by the team over at ConstructionCoverage.com, which used Zillow’s metrics to determine the hottest new home markets in the U.S. Visit their site to see the full list and the rest of their findings.

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The 9 Hottest New Home Markets in the U.S. infographic