The housing market in Boise, Idaho has been particularly hot in 2020, fueled by buyers seeking more … [+]
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2020 has been anything but a normal year. Due to the scourge of the coronavirus (Covid-19) pandemic, the American economy and global economy at large have been severely damaged. And in many cases, the damage could prove irreparable. One interesting bright spot for many American cities, however, is in the realm of housing. Thanks to the Federal Reserve’s slashing of interest rates in the face of unprecedented economic disruption, mortgage rates are at all-time lows in 2020 — and homebuyers are taking advantage of it.
Using for-sale inventory and days-on-market data from Redfin and median list prices from Zillow, we analyzed which major metro areas are seeing their housing markets boom in 2020, especially in comparison to prior years. We analyzed the changes in inventory, days on market and home prices from September 2018 to September 2019 and from September 2019 to September 2020, in order to zero in on the hottest housing markets in 2020. Here’s a look at the 15 hottest housing markets right now in the United States.
15 Housing Markets That Are Hot in 2020
The 15 hottest housing markets in 2020 are spread out across the U.S., though there are some geographic patterns. Out west, California, Idaho and Utah are home to several of the hottest housing markets. In the east, the hottest housing markets can be found in the Mid-Atlantic region and New England. Beyond that, Indiana, Oklahoma and Texas are the other remaining places home to the hottest housing markets. The coldest housing markets, on the other hand, are heavily centered on vacation spots — like cities in Florida, Hawaii and Nevada — as well as densely-populated coastal metropolises like San Francisco and New York, the latter of which was hit the heaviest by the Covid-19 pandemic in its early stages. Read on to find out the 15 hottest housing markets of 2020.
1. Boise, Idaho
The Boise metro area housing market has been hot for some time, but it’s gotten even hotter in 2020. Part of the surge in interest in the Boise market this year is being fueled notably by Californians looking for more affordable homes and more room, especially amid the Covid-19 pandemic, according to KTVB7.
The median list price for a home in the Boise area was around $350,000 back in September 2018. By the end of September 2020, the new median home price had surged to just under $430,000, an increase of more than 20% in only two years. What’s even crazier, Boise’s supply of available homes for sale has gone into freefall. In September 2018, the Boise metro area had a total of 3,447 homes for sale. Two years later, at the end of September 2020, that amount hit a record low of only 462 homes available for sale — equal to a decline of 86.6% in Boise’s housing inventory.
2. Provo, Utah
Utah housing markets have ranged from healthy-to-booming for some years now. The Provo metro area in particular is seeing homes fly off the market in 2020. In September 2019, the median number of days Provo homes spent on the market before getting sold was 40. Now, the average number of days a home sits on the market is just 14 days in September 2020.
Home prices in Provo are grown impressively, by 20.3% in two years, from a median of $375,800 in September 2018, up to $452,154 in September 2020. Meanwhile, available inventory has plummeted by 78.5% since 2018, when there were 2,941 homes for sale in September of that year, down to only 631 homes in September 2020.
3. Ogden, Utah
Following closely on Provo is another Utah housing market, Ogden. Like in Provo, home prices in Ogden have increased markedly in just two years. From $364,267 in September 2018, the median list price in Ogden now exceeds $420,000 in 2020. And like Provo, Ogden’s for-sale inventory has dropped significantly year over year. In just one year, the number of available homes for sale dropped by 70.9%, from 1,853 homes in September 2019 down to only 540 as of September 2020. What’s more, homes in the Ogden metro area are selling faster than ever. Whereas in September 2019, the average number of days on the market was 26, by September 2020 that average had fallen to just 11 days on the market before being sold.
4. Tulsa, Oklahoma
Out of the 100 metro areas analyzed here, Tulsa’s housing market has experienced the greatest increase in home prices over the last two years. From a median list price of $219,833 in September 2018, home prices have grown by 33%, rising to $292,300 in September 2020. Equally impressive, Tulsa’s available inventory has shrunk immensely in recent years. From having over 4,400 homes for sale in September 2018, Tulsa’s available inventory now stands at 1,863, which means its supply of homes has been more than halved in two years.
Tulsa homes aren’t staying on the market long either. In September 2018, the average number of days on the market was 36, and in September 2019, the average was 27 days. However, as of September 2020, the average amount of time a Tulsa home sits on the market is only 11 days.
5. Killeen, Texas
The Killeen metro area is located north of Austin and has seen its housing market heat up substantially in the past few years. Home prices in Killeen have increased by over 18% in two years, though the current median list price of $252,540 is pretty affordable compared to many other major markets. This may be why houses in the Killeen metro area are getting snatched up so quickly these days by homebuyers. The median number of days Killeen homes spent on the market in September 2018 was 35 days, while a year later it decreased slightly to 30 days. But in September 2020, the median number of days a home spends on the market is just 15 days, exactly half the number of days from the previous year. As a result, for-sale inventory in the Killeen area has been dropping markedly: From 1,511 homes for sale in September 2018, the available amount declined by two-thirds in two years, down to only 503 homes by September 2020.
6. Allentown, Pennsylvania
Located in the Lehigh Valley north of Philadelphia, the Allentown metro area has been growing over the years while many other major Pennsylvania cities have been experiencing population declines. Home prices have been on a solid rise, with the median list price increasing by more than 20% since September 2018, up about $50,000 to nearly $285,000 as of September 2020. Meanwhile, available homes for sale have been dropping year over year and in substantial numbers. From having a for-sale inventory of 3,026 homes in September 2018, the Allentown area now has only 1,143 available homes as of September 2020, a decline of 62.2% in just two years. Not surprisingly, homes in the Allentown metro area aren’t staying on the market long. Whereas in both September 2018 and 2019, the average number of days on the market exceeded 20, as of September 2020, homes spend an average of only 11 days on the market before getting bought.
7. Stockton, California
Stockton has been on a sustained path of growth over the years in terms of its population and economy. The Stockton metro area offers homes that are more affordable compared to other major cities in the California housing market, but prices are rising. The median list price for a home in the Stockton area was under $390,000 two years ago, but has now reached $472,250, a 21.6% increase — roughly $84,000 — from September 2018 to September 2020.
Rising home prices have been coupled with tightening inventory and fewer days on market. Last September, Stockton homes spent a median of 27 days on the market before being sold. Only a year later, the average amount of time is down to a mere 10 days on the market before getting grabbed up. With houses flying off the shelf in the Stockton metro area, available inventory has dwindled. From having more than 1,700 homes for sale in September 2018, Stockton now has only 616 available homes as of September 2020 — a decline in inventory of nearly 65% in only two years.
8. Richmond, Virginia
Richmond is leading the northern Virginia housing market in 2020 with rising prices and homes getting sold in record amounts of time. From 2012 through 2019, May and June were the hottest months for home sales in Richmond, with the median number of days on market averaging out to 22 days for those years. However, in 2020, with normalcy out the window, Richmond homes are getting sold in record time and not during May or June. Instead, in September 2020, Richmond area homes spent an average of only 10 days on the market before being bought up. With so little time passing from going on the market to getting sold, the Richmond metro area’s housing inventory has been squeezed significantly. Over the last two years, available homes for sale have dropped by more than half, from 3,923 homes in September 2018, down to 1,751 by the end of September 2020.
9. Indianapolis, Indiana
The Indianapolis metro area is showing that Rust Belt cities can boast impressive housing market growth even in the face of the region’s declining and aging population, not to mention the coronavirus pandemic. Home prices have risen steadily in the Indianapolis area, with the median list price now exceeding $300,000 for the first time in over a decade.
What’s more, homes in Indianapolis are really selling like hotcakes, with the average time spent on the market dropping from an already-short 15 days in September 2019, down to just 7 days in September 2020. Back in 2012, when the U.S. housing market was finally bottoming out from the crash, the median number of days a home sat on the market was 105 in September that year. With home sales occurring so quickly, inventory in the Indianapolis housing market is down by more than half compared to two years ago: From 6,692 available homes in September 2018, down to 3,130 in September 2020.
10. Worcester, Massachusetts
The hottest place in the Massachusetts in 2020 is not the Boston housing market, but Worcester. Located west of Boston, closer to the center of the state, the Worcester metro area has been blossoming in recent years. Home prices have risen impressively over the last two years, by almost $70,000, from a median price of $329,900 in September 2018, up to a current median of $396,600 in September 2020. But the biggest housing trend in Worcester is the dwindling supply of available homes.
In the Boston metro area, homes available for sale declined by only 14.4% — from 10,330 homes in September 2018, down to 8,847 in September 2020. By contrast, in the Worcester area, housing inventory has been cut in half by its record number of sales: From 3,184 homes two years ago, down to just over 1,600 available for sale in 2020.
11. Fresno, California
The Fresno metro area is another California housing market that’s hot this year, with homes flying off the market shortly after they’ve been put up. Since 2012, the record for fewest number of days a home spent on the market in Fresno was 14 days back in July 2017. That record, however, was trounced in September 2020 when homes spent a median of just 9 days on the market before being sold. As a result, Fresno’s housing inventory has shrunk from nearly 2,000 available homes for sale in September 2018, to only 805 homes as of September 2020. Like many other housing markets on our list, Fresno’s inventory has dropped by more than half in only two years, putting a serious squeeze on homebuyers to find places for sale, let alone finding deals.
12. Riverside, California
The Riverside metro area is easily one of the hottest spots in the southern California housing market in 2020. For an area that was particularly devastated by the 2000s housing bubble and crash, Riverside has rebounded over the years, though the recovery took longer compared to many other California cities. In the last two years, price growth has been very solid, with the median price for a Riverside area home rising by more than 18%: From barely over $400,000 in September 2018, up to $476,333 by the end of September 2020.
Riverside is a sprawling city and metro area, so it usually has tens of thousands of homes available for sale. However, from having more than 17,600 homes for sale in September 2018, the Riverside area is now down to less than 9,000 as of September 2020, almost cutting available inventory in half. Houses in the Riverside area are not staying on the market nearly as long as they used to in recent years. In September 2018 and 2019, the median number of days spent on the market exceeded 50 days. Now, as of September 2020, the average time is only 36 days before being sold.
13. Salt Lake City, Utah
The Utah housing market is well represented on our list, with Salt Lake City being the third metro area from the state to make it. Utah’s capital has been undergoing huge growth over the past decade, with new businesses popping up and people moving in constantly. The median home price in the Salt Lake City area has increased by about $50,000 from 2018 to 2020 but remains comparatively affordable at $461,333 as of September 2020. More significantly, homes in Salt Lake City have been getting sold at an incredible pace, speeding up a lot from an average of 30 days on the market in September 2019, to only 16 days by September 2020. The feverish pace of home sales in Salt Lake City has led to dwindling numbers of them that are available for purchase. From over 4,300 available homes in September 2018, the Salt Lake City metro area now has only around 1,500 homes in its for-sale inventory.
14. Sacramento, California
Another shining example in the California housing market is the Sacramento metro area. Like Stockton, Sacramento offers more affordable homes than the nearby Bay Area housing market and has seen significant growth in its population in recent years. With more and more people taking up residence, the Sacramento housing market has heated up considerably over the last two years.
The median home price has risen by almost $90,000 since September 2018, from $469,633 to where it stands now at $554,963. Over the same period, inventory has fallen by more than half in the Sacramento area. From having nearly 7,000 homes for sale in September 2018, the Sacramento metro area now only has 3,043 available in its housing inventory. In line with those figures, the number of days a home sits on the market has shortened a lot from just two years ago. Last September, a Sacramento home averaged 24 days on the market before being sold. That has now fallen to just 10 days on the market in September 2020.
15. Rochester, New York
Not unlike its fellow Rust Belt city Indianapolis, Rochester is experiencing a strong revival in its housing market. The median home price in the Rochester area increased by almost 23% in two years, from $194,633 in September 2018 to $239,100 in September 2020. Over the same time period, available inventory has taken a substantial hit. The Rochester metro area’s inventory stood at 2,601 available homes in September 2018, but now has been reduced to less than half that number, with only 1,298 homes for sale in September 2020. Rochester’s housing market has been heating up for some time, but in 2020, it set new records, with homes spending an average of only 9 days on the market during the months of August and September this year.