GoBankingRates.com looked at home prices, mortgage affordability, market health and demographic statistics to determine 12 markets to watch in 2019. Here’s what it found:
Between 2013-2016 it was more expensive to rent in the Windy City but now, everything has turned around. Renting may be cheaper but, with 22% of all homes heavily underwater in Chicago, there are definitely deals to be found here.
After five years of rising home prices due to a prosperous city economy and growing population from inbound migration, Houston’s home prices are leveling off. A median priced home in October 2018 was $297,000, lower than its median price of $299,500 in 2015.
There has been a definite shift in the housing market here since the housing crash. In 2013-2015, it was more expensive to rent. By 2017, owning a home was more expensive than renting. The result? More homes are now underwater and more deals are becoming available.
A median priced home is now $330,685 and an average mortgage is $1,665/month compared to renting at $1,551/month. As a result, the number of underwater homes and deals to be had is rising in Atlanta
The University of Pittsburg is the focal point of education and health care jobs here. Pittsburg has seen one of the largest increases in Millennial-aged owner-occupied homes in the country. Homes are affordable; jobs are available.
The tax realities in Florida make the overall cost of living affordable in the state. The average mortgage payment comes in at approximately 20% of household income. Millennials, ages 25-34, are 12T of the total owner-occupied households in Orlando.
One in four homes here has an underwater mortgage. This translates into relatively flat home prices and lots of Millennials from other states moving into Norfolk. Home prices rose just $2,000 from 2017 to 2018 to $212,000.
Neighboring Norfolk is struggling but Chesapeake is doing well. The city is seeing one of the largest influxes of Millennials in the country.
Zillow considers Grand Rapids to be quite affordable. With average mortgage payments equaling only 14% of household incomes, Millennials are in sync with these numbers. They make up +17% of all owner-occupied households in Grand Rapids.
In the heat of Silicon Valley, Sunnyvale’s home prices are dizzying. From October 2017 – October 2018, home prices increased by nearly +15% to approximately $1.5M. Are these prices and housing costs sustainable?
New Haven, Hartford and Stamford CT
All three Connecticut towns have become increasingly affordable over the last five years. Less income is spent today on mortgage payments than was spent in 2013-14.
Jersey City, Paterson and Newark NJ
Despite home price surges during the last two years, between 29% and 32% of homes in these three cities have negative equity. As we’ve seen in other cities on this list, negative equity translates into increasing deal opportunities.