The Wall Street Journal and Realtor.com Index revealed America's hottest emerging housing markets in 2021. These metro areas have strong housing demand and rising prices as well as healthy economies, many high-paying jobs and desirable amenities.
EXODUS FROM CALIFORNIA, HIGH-TAX STATES DRIVING UNPRECEDENTED REAL ESTATE BOOM
"We took a lens… to what the communities across America today embody in terms of diversity, economic strength and just as importantly, quality of life," Realtor.com senior economist George Ratiu said on FOX Business' "Mornings with Maria." "It seems that the pandemic has led a lot of us collectively to reevaluate our priorities."
Here are the top five of America's hottest emerging housing markets, according to the WSJ and Realtor.com:
COEUR D’ALENE, IDAHO
Ratiu said Coeur D’Alene got the number one spot for being abundant in space and having a "solid local economy."
"It has quality of life amenities in spades -- from, obviously, the ski resorts, the lake, the natural attractions, a different pace of life," he said.
He added the city has "much more affordable housing, comparatively speaking," which is very important for people who are relocating to the area.
Ratiu called Austin a "pioneer" in the movement of big-name companies relocating.
"We're seeing tech companies after they basically ran out of space -- literally and figuratively -- in Silicon Valley and Seattle, they are looking to meet talent in much more affordable places because they found out that it's unaffordable in those markets," he said.
Ratiu praised the Texas city for successfully navigating this and said many other U.S. cities are looking to Austin as a model.
Ratiu said residents moving from the West Coast to new regions are looking for a change -- including price, space and even pace of life.
"Some housing markets are still doing better than others, and are likely to remain the places to be even when the worst of the pandemic has passed," according to Realtor.com.
Ratiu pointed to age as a significant factor in these real estate trends.
"What we're seeing right now is first-time buyers are really feeling the pressure," he said. "We have 4.8 million millennials turning 30, coming of homeownership age and embracing it, for the next three years in a row. That's a tremendous positive tailwind."
Ratiu said while low supply has pushed housing prices "really high," good news is coming.
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"Sellers are looking to list. Over 10% of homeowners in America today are planning to list in the next year," he said. "So I think that we are going to see a boost to supply, which should moderate the steep price growth."