By Daily Mail (U.S.) | Created at 2024-11-16 14:11:35 | Updated at 2024-11-16 16:53:18
2 hours ago
Home prices have rocketed across much of the country in the years following the pandemic.
Even areas which were once considered affordable now have home sales averaging more than $1 million, according to Realtor.com.
Now a new report has found the next top 10 markets that could becoming million-dollar hotspots in the next 10 years.
Topping the list of currently affordable markets that are slated to sky-rocket in the next decade is the small city of Boise City, Idaho.
Boise - followed by Salt Lake City in Utah and Portland, Oregon - is well-positioned because the West and Midwest still have a lot more space for new homes to be built, compared to regions such as the Sun Belt.
'Even though the Sun Belt is growing fast, there's still a lot of land and cheaper housing,' Yancy Forsythe, owner of Missouri Valley Homes, told Realtor.com.
'This helps keep home prices lower for now. The availability of land makes it easier to build new homes, which keeps prices from jumping too high.'
To find these soon-to-be hotspots, Realtor.com economists looked at cities' sales growth between 2014 and 2019. It then applied that growth trajectory to the period from 2023 to 2028, and then again to the five years between 2028 and 2033.
Boise City in Idaho led the list of property markets projected to become million-dollar hotspots
This allowed the researchers to project where home prices might be in five and 10 years time.
Using these projections Realtor.com found that many of the emerging million-dollar hotspots were cities situated near other already-expensive markets.
1. Boise City, Idaho
Boise, recently named among the 25 must-see bucket list locations for 2025 by National Geographic, is increasingly being considered a property hotspot.
Nestled in the foothills of the Rocky mountains, the city is home to around 236,000 locals.
Boise is home to one of the largest populations of members of the Basque ethnic group outside Spain, and the Basque block in downtown Boise features ethnic taverns, restaurants, bars, and a heritage museum.
Other popular attractions include seeing a play at the almost 100-year-old Egyptian Theatre, strolling through the picturesque Julia Davis Park or stopping in for an afternoon at the Zoo.
Sports fans can see the Boise Hawks play or check out the famous blue-pitched Albertsons Stadium at Boise State University, home of the Broncos football team.
Those that bought a home in Boise last year paid $464,578 on average.
With a projected growth rate of 58.2 percent, those homes could be worth $735,026 in 2028 and $1,162,910 by 2033, according to Realtor.com's analysis.
'Various popular markets such as Boise have seen substantial price growth in recent years as buyer demand put pressure on inventory, leading to climbing prices and competitions,' Realtor.com economist Hannah Jones said.
'If these trends continue, prices could exceed $1 million in the next decade in some markets that are currently relatively affordable.'
However, Jones cautioned that markets can be unpredictable and plenty of unexpected changes could alter the predictions.
'If the local economy shifts, demand could fall and prices may not keep up with recent growth,' Jones explained.
'On the supply side, home construction could pick up, taking some pressure off of inventory, which would allow for slower price growth.'
2. Salt Lake City, Utah
2014-2019 5-year price growth: 46.9 percent
2023 median sale price: $493,414
2028 price projection: $724,614
2033 price projection: $1,064,147
3. Portland, Oregon
2014-2019 5-year price growth: 44.9 percent
2023 median sale price: $501,245
2028 price projection: $726,105
2033 price projection: $1,051,838
4. Colorado Springs, Colorado
2014-2019 5-year price growth: 49.8 percent
2023 median sale price: $454,673
2028 price projection: $680,980
2033 price projection: $1,019,929
5. Stockton, California
2014-2019 5-year price growth: 58.0 percent
2023 median sale price: $579,292
2028 price projection: $915,467
2033 price projection: $1,446,731
6. Denver, Colorado
2014-2019 5-year price growth: 53.8 percent
2023 median sale price: $547,966
2028 price projection: $842,932
2033 price projection: $1,296,676
7. Sacramento, California
2014-2019 5-year price growth: 40.7 percent
2023 median sale price: $557,522
2028 price projection: $784,301
2033 price projection: $1,103,325
8. Boston, Massachusetts
2014-2019 5-year price growth: 26.2 percent
2023 median sale price: $622,902
2028 price projection: $786,000
2033 price projection: $991,804
9. Honolulu, Hawaii
2014-2019 5-year price growth: 29.4 percent
2023 median sale price: $683,086
2028 price projection: $883,931
2033 price projection: $1,143,830
10. Seattle, Washington
2014-2019 5-year price growth: 46.3 percent
2023 median sale price: $694,351
2028 price projection: $1,015,739
2033 price projection: $1,485,885
