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US Millennials Driving Property Growth in US Hotspots

US millennials are driving property growth in US property hotspots, and overseas property investors may want to take advantage of demand for properties in those more affordable midsize metros.

While property values in some parts of the US may start levelling off in the near future, property values in the country’s hottest real estate markets are projected to see large increases in the next year, with some expected to rise by nearly 10 per cent.

Among large metro areas, here are the ten hottest US real estate markets being driven by US millennials

  1. Ogden, UT
  • Median list price: $337,450
  • 1-year change in list price: 13.5%
  • Sale-to-list price ratio: 102.3%
  • Average age of inventory: 44 days
  • Projected 1-year change in home value: 7.8%

Ogden has enjoyed a booming real estate market since 2013. Drawing both in and out-of-state homebuyers, the northern Utah city has seen home prices increase to record highs. A low cost of living combined with gorgeous mountain scenery and plentiful outdoor recreation activities make Ogden a highly desirable place to buy a home.

  1. Boise, ID
  • Median list price: $323,633
  • 1-year change in list price: 9.1%
  • Sale-to-list price ratio: 99.3%
  • Average age of inventory: 47 days
  • Projected 1-year change in home value: 9.2%

Many US millennials are leaving expensive cities such as San Francisco, Seattle, and Portland and moving to more affordable midsize metros like Boise. The influx of new residents has driven up demand for homes, causing prices to drastically rise in recent years. Low crime rates, abundant recreation activities, and good schools are a big draw for new residents who have been priced out of larger, high-cost metro areas.

  1. Spokane, WA
  • Median list price: $270,500
  • 1-year change in list price: 12.0%
  • Sale-to-list price ratio: 98.8%
  • Average age of inventory: 56 days
  • Projected 1-year change in home value: 7.5%

Compared to other Pacific Northwest cities Seattle and Portland, Spokane is still affordable even though prices are rising rapidly. Like other hot real estate markets, a low inventory of homes can’t keep up with demand. The eastern Washington city is a perfect mix of nature and urban living, making it a popular place for homebuyers.

  1. Salt Lake City, UT
  • Median list price: $373,754
  • 1-year change in list price: 4.8%
  • Sale-to-list price ratio: 102.4%
  • Average age of inventory: 47 days
  • Projected 1-year change in home value: 5.6%

The state of Utah has experienced significant population growth in the last few years, with much of this growth concentrated in Salt Lake City. Along with population growth, Utah’s low cost of living and Salt Lake City’s business friendly environment keep demand for homes high while supply has struggled to keep up.

  1. Salem, OR
  • Median list price: $319,213
  • 1-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%

Home prices all over the Pacific Northwest have risen in recent years, including in Salem. Although prices are higher than they were a few years ago, Salem is still much more affordable than nearby Portland and Seattle. The capital city’s relative affordability makes it an attractive alternative to US millennials with young families seeking to settle down and buy a home.

  1. Killeen, TX
  • Median list price: $190,717
  • 1-year change in list price: 9.3%
  • Sale-to-list price ratio: 99.4%
  • Average age of inventory: 65 days
  • Projected 1-year change in home value: 3.8%

The Central Texas metro area of Killeen is one of the fastest growing cities in American, thanks in large part to the local army base, Fort Hood. The region boasts a robust economy, much of which revolves around the military base. Killeen hosts a range of cultural and recreational opportunities, including museums, theaters, farmers’ markets, and outdoor parks. Fortunately for residents, Killeen offers substantially lower living costs than nearby Austin.

  1. Provo, UT
  • Median list price: $357,246
  • 1-year change in list price: 2.6%
  • Sale-to-list price ratio: 101.0%
  • Average age of inventory: 49 days
  • Projected 1-year change in home value: 5.6%

Provo is among several northern Utah cities that have seen large population and home price growth in recent years. The city is located 45 miles south of Salt Lake City and is flanked by the Wasatch Mountains to the east and Utah Lake to the west. Convenient access to outdoor recreation entices families pursuing active lifestyles. At the same time, Brigham Young University attracts academics, and brings a wide selection of cultural events to the area.

  1. Grand Rapids, MI
  • Median list price: $257,270
  • 1-year change in list price: 7.3%
  • Sale-to-list price ratio: 97.5%
  • Average age of inventory: 66 days
  • Projected 1-year change in home value: 5.4%

Grand Rapids is the second largest city in Michigan and its metro area is the fastest growing, according to data from the Census Bureau. The metro area’s large US millennials population indicates a substantial number of potential first-time homebuyers, and the area’s healthy economy make Grand Rapids an attractive place to live and buy a home.

  1. Memphis, TN
  • Median list price: $193,800
  • 1-year change in list price: 8.6%
  • Sale-to-list price ratio: 97.3%
  • Average age of inventory: 61 days
  • Projected 1-year change in home value: 3.4%

A story of low inventory and increased demand characterizes many of the nation’s hottest real estate markets, including Memphis. Some of the city’s neighbourhoods are seeing a flurry of housing market activity with new schools, such as Collierville’s new high school, bringing potential homebuyers to those neighbourhoods in droves. Still, Memphis boasts some of the most affordable homes on this list.

  1. Lincoln, NE
  • Median list price: $260,721
  • 1-year change in list price: 7.8%
  • Sale-to-list price ratio: 97.3%
  • Average age of inventory: 61 days
  • Projected 1-year change in home value: 3.4%

Lincoln’s healthy real estate market is due in no small part to its low unemployment rate, steady job growth, and affordability. Home to the University of Nebraska, the state capital still has a small-town feel despite its growth, and homebuyers are eager to settle in this Midwestern town.

 

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