Dallas-Fort Worth’s housing market is on fire, earning the Metroplex a spot on Zillow’s new ranking of the country’s 10 hottest real estate markets in 2019. At No. 7, DFW is the only major Texas metro area to show up on Zillow’s list.
The real estate website says it crunched several sets of data to compute a “hotness” score for each of the 50 largest U.S. metros. In the “hotness” mix were projected median home value, projected rental growth, recent income and population growth, recent unemployment rate and recent number of available jobs.
DFW’s No. 7 ranking signals a shift away from West Coast housing markets (Silicon Valley tops the 2019 list) to more affordable housing markets in the South and Southeast, according to Aaron Terrazas, senior economist at Zillow.
“Affordability is attractive — for both young professionals and booming businesses — earning markets like Orlando, Minneapolis, [Dallas-Fort Worth] and Nashville top billing in 2019,” Terrazas says in a release.
Only three of the top 10 metros posted median home values lower than DFW’s in November 2018, according to Zillow. Terrazas and his colleagues predict an 8.4 percent jump in DFW’s median home value over the next 12 months; two months ago, it stood at $237,800. (For December 2018, the MetroTex group of Realtors pegged the median value of a single-family home in North Texas at $259,000, up 4 percent from a year earlier.)
Zillow foresees a relatively low 12-month bump in DFW rents (2.9 percent). For 2016 and 2017, Zillow put DFW’s income growth at 5.6 percent and population growth at 2.3 percent, both of which were around the midpoint among the top 10 metros.
By comparison, according to Zillow, the median home value in No. 1 Silicon Valley exceeded $1.25 million in November 2018, with the value expected to see a 12-month spike of 12.7 percent — the biggest increase among the top 10 metros. Offsetting that is Silicon Valley’s two-year income growth of 6.8 percent, second only to San Diego (7.6 percent).