In the same year renting becomes more affordable and the homeownership rate bounces back from historical lows, the country’s housing market superstar will be — drumroll, please — Nashville!
Music City has moved beyond its country roots to become a fast-growing economy with employment by the healthcare industry and big corporate names including Nissan, Randstad and Kroger — plus the popular chain of diners, Shoney’s.
Home appreciation is expected to rocket in Nashville this year by 4.3 percent, while incomes recently grew by 1.1 percent and unemployment is a healthy 4 percent.
“These hot markets are experiencing change as more people discover them,” said Zillow Chief Economist Svenja Gudell.
Zillow’s economic predictions for 2017 include a warning about a possible worsening of labor shortages for new construction if President-elect Trump follows through on his hard-line stances on immigration and immigrant labor.
Other predictions for the year ahead:
- Cities will focus on denser development of smaller homes near public transit and urban centers.
- More millennials, who made up more than half of first-time buyers in 2016, will become homeowners this year, increasing the racial and ethnic diversity of homeowners overall.
- Rental affordability will improve as incomes rise and escalating rents slow.
- The share of people driving to work will increase for the first time in a decade, as homeowners move into the suburbs for more affordable housing.
For more insights into U.S. real estate and rentals, check out the Zillow Group Report on Consumer Housing Trends.
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