In news that is likely to surprise no one, experts say Dallas-Fort Worth is expected to be one of the hottest housing markets in the nation in 2021 — specifically, the sixth hottest.
According to the Q4 2020 Zillow Home Price Expectations Survey, real-estate experts, economists, and investment strategists say DFW will outperform the national housing market by a significant margin. The report, which was conducted by independent research company Pulsenomics, includes predictions about home-value growth in the largest 20 U.S. markets in 2021.
No. 6-DFW saw 54 percent of real-estate experts predicting the area will outperform the national home-value-growth average. Ahead of it were Denver, Colorado (No. 5), Tampa, Florida (No. 4), Nashville, Tennessee (No. 3), Phoenix, Arizona (No. 2), and the No. 1 market in the U.S., Austin.
A recent Realtor.com report predicted DFW could see combined sales and price growth of 15.7 percent in 2021 in the housing market compared with 2020. That figure put it at No. 22 in Realtor.com’s ranking of the top 100 major metro areas.
Experts had previously predicted Austin’s housing market would be the hottest in 2020. By mid-December, when the median list price for homes in the Austin metro area had risen year-over-year by more than 23 percent — the biggest increase among the 50 largest U.S. markets — it was clear the Capital City would outpace all other large markets in 2020, according to the report. That's due, in no small part, to the relocation of companies like Tesla, experts say.
The Zillow report notes that it is mostly Sun Belt markets — including Dallas-Fort Worth and Austin —that are expected to outperform the nation’s housing growth in 2021.
“These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, booming economies, and sunny weather,” Jeff Tucker, a Zillow senior economist, said in a release. “Record-low mortgage rates and the increased demand for living space, coupled with a surge of millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future.”
Also appearing on the list is Houston, which ranked 12th, with 32 percent of experts saying the city will outperform the national average.