Home listing site Zillow on Friday announced its predictions for the 10 hottest housing markets of 2017. Markets that made the list have quickly rising home values, low unemployment rates and strong income growth.
Nashville, Tenn., topped the list and is predicted to be the hottest housing market of the year. While the lively country music town is a hot destination for travelers, it's also a major healthcare employment center, driving it to the top of the list.
Although Nashville is ranked number one, Zillow's list is largely made up of Western cities.
Three Utah markets made the list—Provo, Salt Lake City and Ogden. Provo, Utah, has the lowest unemployment rate of the 10 hottest markets at 2.7%. Home values in all three Utah markets are expected to appreciate more than 4% this year.
Sacramento is one of the more affordable metros in the state of California with quickly rising home prices that are still 58% less expensive than the median Bay Area home. Home values in Sacramento are expected to appreciate almost 5% in 2017.
"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 in a release. "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."
|Ranking||Metropolitan Area||Forecasted Home Value Appreciation||Income Growth||Unemployment Rate|
|5||Salt Lake City||4.3%||1.0%||2.8%|