Nashville is Zillow's Hottest Housing Market for 2017

SEATTLE, Jan. 6, 2017 /PRNewswire/ -- Today, Zillow® announced its predictions for 2017's 10 hottest housing markets. Topping the list this year is Nashville, Tenn. followed by Seattle, a market with home value growth in the double-digits and some of the fastest rent growth in the country.

To determine which markets would heat up over the next 12 months, Zillow looked for places with quickly rising home values, low unemployment rates and strong income growth. Provo, Utah -- one of three Utah markets on the list -- has the lowest unemployment rate of the 10 hottest markets at 2.7 percent. Home values in all three Utah markets are expected to appreciate more than 4 percent in 2017.

Nashville has moved beyond its country music roots to become a major healthcare employment center, helping drive the metro to the top of Zillow's list. California's capital, Sacramento, is one of the more affordable large metros in the state. Home prices are rising quickly, but are still 58 percent less expensive than the median Bay Area home. Zillow forecasts Sacramento home values will appreciate almost 5 percent over the next year.

Although Nashville is ranked number one, Zillow's list is largely made up of Western cities. Portland reported the strongest home value growth in 2016 among the 100 largest U.S. metros, with home values up almost 15 percent over the past year. Housing experts predict that Portland, Seattle and Denver will continue to outperform the average national home value growth in 2017ⁱ. Nationally, Zillow expects home values to appreciate 3 percent over the next year.

Zillow's Top 10 Housing Markets for 2017:

1. Nashville, Tenn.
2. Seattle
3. Provo, Utah
4. Orlando, Fla.
5. Salt Lake City, Utah
6. Portland, Ore.
7. Knoxville, Tenn.
8. Ogden, Utah
9. Denver
10. Sacramento, Calif.

"Zillow's 2017 list highlights that jobs and opportunities are increasingly growing in smaller markets away from the coasts," said Zillow Chief Economist Dr. Svenja Gudell. "Mid-size cities like Salt Lake City, Portland, and Nashville are desirable places to live, with good employment opportunities and steady economic growth. The growth and demand for housing will drive up home prices in 2017, and these hot markets are experiencing change as more people discover them."

Three variables influenced Zillow's hot market predictions: Zillow's Home Value Forecastⁱⁱ, which forecasts the change in the Zillow Home Value Index over the next 12 months, recent income growthⁱⁱⁱ, and current unemployment rates^iv. Those three variables were then scaled for the 100 largest U.S. metros 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.
Moody's Analytics is a registered trademark of MIS Quality Management Corp.

ⁱ Housing experts were surveyed in the Zillow Home Price Expectations Survey between October 28 and November 15, 2016. The survey was conducted by Pulsenomics LLC on behalf of Zillow, Inc. and asked the experts about their expectations for the housing market. A total of 111 experts were surveyed.
ⁱⁱ 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. Data used in this analysis is from October 2016.
ⁱⁱⁱ Incomes in this analysis were determined using Moody's Analytics® estimates from the Census Bureau.
^iv Unemployment rates in this analysis were determined using Moody's Analytics® estimates from the Bureau of Labor Statistics, Local Area Unemployment Statistics.

SOURCE Zillow

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