Zillow ranks Nashville as 8th hottest housing market for 2019

Nashville 2019
House for sale_424401

Nashville is expected to be one of the nation’s hottest housing markets this year! 

For the second year in a row, Nashville is number 8 on Zillow’s list of the hottest housing markets in the U.S.  

Zillow’s Top 10 Housing Markets for 2019

  1. San Jose, Calif.
  2. Orlando, Fl. 
  3. Denver, Colo. 
  4. Atlanta, Ga. 
  5. Minneapolis, Minn. 
  6. San Francisco, Calif. 
  7. Dallas, Texas
  8. Nashville, Tenn. 
  9. Jacksonville, Fl. 
  10. San Diego, Calif.

The list is based on places where home values and rents are expected to outpace the nation in 2019, strong income growth, good job opportunities with low unemployment rates and a growing population. 

Since a large portion of the research on what makes a hot market is based on the labor market, Amazon could bump Nashville up on the list next year. 

“It all comes back to that labor market, that job growth. We know that places that are able to create jobs, that are able to create good paying jobs, sooner or later that drives the local housing market. Of course, Nashville should get a bump in 2019. Amazon’s getting there; their center of excellence. I guess they’ll start ramping up probably in this coming year. That should spur all sorts of spillover effects,” said Aaron Terrazas, Zillow Senior Economist. 

Five of the hottest markets are in the South, where housing is more affordable, drawing in new residents.  

Economists narrowed down the top five neighborhoods in the Nashville area that they believe will experience the most rapid growth this year. They are Cloverhill in the Donelson area, Hermitage Hills, Whites Bend in West Nashville, Tulip Grove in Hermitage, and Rayon City in the Old Hickory area. 

Neighborhoods predicted to see fastest home value growth in 2019:

  1.  Cloverhill– Donelson – 12.2%
  2. Hermitage Hills– Hermitage – 10.5%
  3. Whites Bend– West Nashville – 10.1%
  4. Tulip Grove– Hermitage– 9.9%
  5. Rayon City– Old Hickory area– 9.8%

“For the neighborhoods, we looked at home value growth over the next year and in general you do see kind of a cluster of rapidly appreciating neighborhoods going out east on Interstate 40. Now I know for people who have lived in Nashville for a long time it may not feel affordable but compared to a lot of other parts of the country it is very affordable, and these are the booming parts of the country. Increasingly as interest rates rise, affordability is attractive. Attractive for young people starting families, attractive for businesses,” said Terrazas. 

The median home value in November 2018 was $252,200. Researchers believe home values around Nashville will increase 6.8-percent between then and November.

Rank

Metro

Metro

Median Home Value, Nov. 2018% Change in Home Values, ForecastMedian Rent, Nov. 2018% Change in Rents, ForecastIncome GrowthPopulation GrowthUnemployment Rate

Job Openings per Person

Metro

1

San Jose, CA

 

San Jose, CA

 $1,251,20012.7%$3,5212.1%6.8%1.0%2.5

0.039

San Jose, CA

 
2

Orlando, FL

 

Orlando, FL

 $233,7006.3%$1,4722.9%5.2%2.8%3.1

0.029

Orlando, FL

 
3Denver, CO$403,8006.8%$2,0755.2%6.6%1.2%3.1

0.028

4Atlanta, GA$215,0007.6%$1,4118.2%

4.4%

4.4%

1.6%3.3

0.022

4.4%

5

 

Minneapolis-St Paul, MN

 

 

Minneapolis-St Paul, MN

 

Minneapolis-St Paul, MN

$265,2005.4%

$1,659

 

$1,659

 2.3%5.0%1.4%2.6

0.035

 

Minneapolis-St Paul, MN

 

Minneapolis-St Paul, MN

Minneapolis-St Paul, MN

$1,659

 
6

San Francisco, CA

$963,0006.7%$3,4171.2%5.2%5.2%2.6

0.033

7

Dallas-Fort Worth, TX

Dallas-Fort Worth, TX

$237,800

8.4%

8.4%

$1,6112.9%5.6%5.6%3.3

0.019

Dallas-Fort Worth, TX

8.4%

8

 

Nashville, TN

 

Nashville, TN

$252,2006.8%

$1,499

$1,499

1.1%6.5%6.5%2.9

0.023

Nashville, TN

$1,499

9

Jacksonville, FL

Jacksonville, FL

$208,2009.3%

$1,357

$1,357

2.4%3.3%3.3%3.0

0.026

Jacksonville, FL

$1,357

10San Diego, CA$592,8004.3%

$2,573

$2,573

8.6%7.6%7.6%3.2

 

0.017

 

0.017

$2,573

0.017

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