Top 8 real estate markets of 2020
A PwC real estate report on emerging trends for 2020 has prepared a list of markets that are expected to show positive growth this year. Major factors to determine rankings are investor demand, development opportunities, skilled-labour availability, population growth, and job availability.
The Boston real-estate market is characterised by conservative growth, long-term resilience, and positive investor sentiment. Industries such as technology, healthcare, and education are expected to drive demand in a city populated by a diverse and highly-skilled workforce. The suburban areas of the city will see an increase in home-sales as older millennial will start families and look to settle down.
Favourable government policies, high projected population growth, and a large influx of migrants make Austin one of the best performing real-estate markets. The recent opening of an Apple center is expected to generate upto 5,000 jobs. Zillow predicts that a surge in demand for residential housing is expected to increase prices by an average of 2.8 %.
The 4th largest metropolitan area in the United States, Dallas holds a pre-eminent position as a commercial, transportation, and cultural hub. Low tax burden and a favourable regulatory environment has made Texas a major centre for technology, pharmaceutical, and biotech companies. The city’s high-educated millennial workforce combined with a large-availability of single family homes has led to large investment flows into real estate development.
A robust local economy driven by the technology boom, has led to Seattle experiencing a decade of growth in home prices. “Currently, affordability is and continues to be an issue, with homes in the lower tier for prices seeing the most extreme inventory crunch.” says Jeff Tucker, an economist at Zillow.
According to a recent Metropolitan Planning organisation report, Nashville is experiencing a high-population growth and will add a million people by 2035. The new AllianceBernstein headquarters is projected to generate up to 1000 new jobs. With a large number of houses available at affordable rates, the city will see a lot of purchases being made by first time-buyers.
The headquarters of seven Fortune 500 corporations, Charlotte is projected to see a lot of investment activity this year. The presence of a large number of finance and technology firms have bolstered job prospects and attracted skilled workers. The city is ranked number 2 for home-building activity and is currently seeing a surge in home sales.
The competitive Los Angeles market is characterized by high prices, leading to affordability challenges. A Zillow report estimates that the robust economy and high-demand will cause prices to increase by 4.2%. For the 2 decades, Los Angeles has seen consistent urban rejuvenation driven by the world-class entertainment and aerospace industries.
A plethora of educational institutions coupled with a presence of technology and biotech startups have to high-availability of STEM jobs in Raleigh. According to a Kiplinger report, Raleigh has seen a price appreciation of 39% in the last five years. Further, a Livability.com index rates Raleigh’s quality of life as ‘very high’, specifically in terms of leisure and culture.