What areas are expected to be the top housing markets 2018 in the US? This is a question that every real estate investor should be asking him/herself with the start of a new calendar year.
2017 has seen a significant growth in home prices, which was met with a drastic decline in the inventory of home sales.
Will the year 2018 bear the same results? Or will the housing market in the US witness an increase in its inventory?
That all remains to be seen throughout the year. For the time being, we have compiled a list of the 4 top housing markets 2018 based on our predictions and data as well as the predictions of Trulia and Realtor.com.
Top Housing Markets 2018
The year 2017 was a very chaotic year for the US housing market.
The year saw the lowest inventory of home sales to date, which was accompanied by a rapid increase in home prices.
Following the turmoil of political, economic, and environmental changes and events that took place in 2017, it is expected that 2018 will see a substantial growth in the inventory of home sales, which will cause the prices to drop again.
But for real estate investors who are looking to find the next big housing market to invest in this year, we have created a list of 4 of the top housing markets 2018 based on Mashvisor’s data as well as the data of other similar websites, such as Trulia and Realtor.com.
Top Housing Markets 2018: Las Vegas, Nevada
Las Vegas has been showing up a lot on similar lists recently, so it comes as no surprise that it made it on this list as well.
The Sin City has witnessed a substantial increase in its median prices during the last two years, and its housing prices have been increasing steadily since January 2016.
In 2017, the median prices in Las Vegas grew from $239,000 in January to $262,000 in November, and they are still rising.
Despite the Sin City being one of the major attractions in the US, the prices of homes in the city have been surprisingly affordable. Due to its affordability in comparison to other areas, Las Vegas has become the preferred destination for Californians who are nearing retirement age, which should result in a rise in the price of properties, making it a solid investment for 2018.
Here are Mashvisor’s stats for Las Vegas at the beginning of 2018:
Average Cash on Cash Return: 2.76% Traditional | 4.67% Airbnb
Average Rental Income: $1,421 Traditional | $1,625 Airbnb
Number of Listed Properties: 4,349 Investment | 483 Airbnb | 3,744 Traditional
Average Airbnb Occupancy Rate: 47%
Top Housing Markets 2018: Nashville, Tennessee
Another name that has been popping up often on similar lists, Nashville has also made it to the list of top housing markets 2018.
Nashville has seen a steady increase in its prices over the past few years, and this increase isn’t expected to stop now.
With the median home prices rising by 11% in 2017, it is expected that the home prices in Nashville will increase by another 8% in 2018.
Nashville might not be, however, the best housing market if you’re looking to invest in luxury homes. But it was ranked as the #1 single-family housing market in the US for 2017.
This means that if you’re looking to invest in a single-family home, then Nashville might be the go-to-market. With the median home prices currently sitting at around $358,000, the prices are still relatively affordable, and they are almost guaranteed to grow even further throughout the year.
Here are Mashvisor’s stats for Nashville at the beginning of 2018:
Average Cash on Cash Return: 2.23% Traditional | 5.66% Airbnb
Average Rental Income: $1,707 Traditional | $2,827 Airbnb
Number of Listed Properties: 680 Investment | 1,444 Airbnb | 2,916 Traditional
Average Airbnb Occupancy Rate: 49%
Top Housing Markets 2018: Dallas, Texas
While the Texas housing market as a whole has been one of the best performing markets in the US due to cities such as Austin, San Antonio, and Fort Worth, Dallas remains at the top of the list when it comes to the top housing markets 2018.
Despite the median home prices in the city area being high, where homebuyers are struggling to find homes that are listed below $500,000-$700,000, the suburbs of Dallas offer many great opportunities for investing, and it is quite possible to find quality homes for prices around $350,000.
What makes Dallas’s housing market a great choice for investments is the expected increase in home prices by 5.6%, and sales by 6%, for the year 2018.
Here are Mashvisor’s stats for Dallas at the beginning of 2018:
Average Cash on Cash Return: 2.54% Traditional | 1.26% Airbnb
Average Rental Income: $1,982 Traditional | $822 Airbnb
Number of Listed Properties: 1,211 Investment | 453 Airbnb | 5,692 Traditional
Average Airbnb Occupancy Rate: 30%
Top Housing Markets 2018: Salt Lake City, Utah
According to some realtors in Salt Lake City, the housing market in the city is described as “dynamite” at the moment.
With a rise of 5.5% in house prices in 2017 and an expected increase of 4% in 2018, prospective buyers should set their eyes towards Salt Lake City’s housing market while they can to make use of the expected increase.
With the growing businesses in the city, Salt Lake City is starting to attract all kinds of buyers for all price ranges.
Despite previous predictions and indicators that the Salt Lake City housing market is suffering from depression in comparison to the US housing market as a whole, the housing market in the city has been growing and catching up, and is currently expected to be one of the top housing markets 2018.
Due to this growth, buyers have been occasionally offering up to 25% above the asking price for properties in Salt Lake City, and it is becoming common for people to sell their properties in expensive areas in exchange for much cheaper and similar properties in Utah due to the relatively cheap prices. The median home price in Salt Lake City, Utah is around $360,000.
Here are Mashvisor’s stats for Salt Lake City at the beginning of 2018:
Average Cash on Cash Return: 1.91% Traditional | 2.43% Airbnb
Average Rental Income: $1,315 Traditional | $1,211 Airbnb
Number of Listed Properties: 122 Investment | 327 Airbnb | 376 Traditional
Average Airbnb Occupancy Rate: 41%
Conclusion
No one can predict the future with 100% accuracy. But with all the new and different sources of data and information, predictions related to the housing market performance are becoming easier to make and more accurate than ever before.
If you like our list of the top housing markets 2018 in the US, feel free to subscribe to Mashvisor to start receiving our blogs and articles related to the US housing market and to real estate investing.