Real estate agents reveal the hottest markets for the next 10 years
(Originally Posted by Business Insider 12/12/19. Image from ShutterStock)
- We asked real estate agents and experts across the country their predictions for the most popular real estate markets in the 2020s.
- Some of the cities expected to rise in value and popularity are Reno, Nashville, and Philadelphia.
- Baby boomers from the Northeast are flocking to Leland, North Carolina, while millennials are moving to Columbus, Ohio.
As we head into 2020, it’s time to start thinking about investments to make in the next decade — whether that’s a new car, finally treating yourself to a fancy kitchen appliance, or buying a new property.
Business Insider spoke to real estate agents and experts who predicted what the 15 hottest real estate markets will be in the new decade, whether you’re looking to make a profit or invest in a property that will rise in value over time.
Keep scrolling to learn more about the hottest new places to live.
Long Island City, New York
According to Eric Benaim, CEO of Queens-based brokerage firm Modern Spaces, Long Island City is a hot market right now, and will continue to be over the next 10 years.
“Over the last decade, Long Island City has undergone a complete transformation, from a mostly industrial neighborhood to the fastest growing neighborhood in America. LIC rivals Manhattan’s real estate scene with a plethora of new, luxury residential buildings which feature elevated design and over-the-top amenity packages,” Benaim told Business Insider.
“Part of the neighborhood’s recent boom also stems from Amazon’s former proposal to locate its HQ2 in LIC, proving the area is competitive against Manhattan’s commercial market. Although the deal was ultimately cancelled, it helped continue to put the neighborhood on the world map.”
The city of Kapolei, on the island of Oahu, is one of the fastest-growing cities in the Aloha State.
According to John Harris of RE/MAX Honolulu, Kapolei, aka Oahu’s “second city”, “has finally grown into this title as the fastest growing region in the state; in 1990, the population of Kapolei and ‘Ewa was 42,931 persons residing in 11,722 homes. Next year, 30 years later, the region’s population is projected to be 130,700 persons in 40,900 homes, a more than 200% increase for both figures.”
Harris told Business Insider that “the investment in Kapolei and development over the years has not only resulted in dozens of new communities of single-family homes and townhomes, but also includes numerous commercial centers, a world renowned resort, major retail and entertainment offerings, a government center, and a new University of Hawaii campus, with much more growth planned over the next 20 years.”
Leland, North Carolina
Leland, North Carolina, is expected to continue to grow in popularity, Jay Seville of Just New Listings told Business Insider.
“With the baby boomer retirement wave well underway the past five years and continuing, Leland will continue to be one of hottest markets in the country. Leland has one of most explosive new construction machines in the country with real estate taxes that are 15% of what the new residents paid in New York, New Jersey, etc. Literally, many of these retirees have been forced to move due to the exorbitant real estate taxes in the Northeast. And the baby boomer retirement wave will continue at least 10 more years,” Seville said
The San Francisco-adjacent city of Oakland will continue to emerge as an alternative to the expensive city, said Climb Real Estate founder Chris Lim.
Oakland has “more affordable housing options and a burgeoning restaurant and art scene,” Lim told Business Insider.
Chris Lim also told Business Insider to keep an eye on Reno. “I forecast that Reno, Nevada, will be one of the strongest real estate markets in the country for 2020. In addition to Tesla moving to Reno, the area benefits from no state income tax, lower housing costs, an international airport, and proximity to Lake Tahoe. Reno will surely be the hottest real estate market in the US for 2020 and beyond,” he said.
Vancouver, British Columbia
Outside of the US, Vancouver, Canada, will also be a popular spot in the next decade.
“Vancouver is going to be by far one of the hottest real estate markets in North America in the 2020s. Vancouver has seen an 81.7% increase in home prices from 2009 to 2019 caused by population growth from very high levels of immigration and significant economic growth coupled with extremely strict land-use rules that severely constrain new housing supply,” said real estate agent Mike Stewart.
“Unlike much of North America, immigration to Vancouver tends to be dominated by high income and high net worth individuals who are very interested in homeownership generally upon arrival. The Vancouver economy should continue its spectacular growth of knowledge-based industries such as international trade, film and television production, technology, tourism, and banking/finance,” he told Business Insider.
“This city has been on the rise for years now, but the growth isn’t anticipated to stop. There is more planned development for the upcoming year as more people move to this music hub,” real estate agent and founder of Real Estate Writing for You, Ashley Baskin, told Business Insider.
“The one slowdown is that the real estate has become more competitive – investors are paying lower cap rates and renters are paying higher rent. In fact, homes have almost doubled in the last five years. What keeps Austin on the top of the list is their identity – their slogan is ‘Keep Austin Weird’ – this strategy is setting them apart from other growing cities.”
Baskin told Business Insider that another town known for its music scene, Nashville, is still on the up and up.
“Nashville has also seen an influx in residents over the last few years. In 2019 the occupants of Nashville witnessed a $1 billion-dollar redevelopment project take place in their downtown – this new space includes a new hotel, a new venue for concerts, retail spaces, and even an office for Amazon. The draw to Nashville is that this music city has not seen a spike in residential real estate yet, so it’s a great time to get in,” Baskin said.
According to Columbus-based residential developer Lifestyle Communities, the city is the fastest-growing urban area in the Midwest.
“With one of the highest millennial populations in the country and seemingly nonstop development (Amazon recently announced plans for a $400 million, 170,000-square-foot data center in the region and overall development has seen a year-over-year increase of 16% from 2018) there will continue to be increased demand for experiential, community-based living environments,” an LC agent told Business Insider.
Greenwich is less than two hours outside New York City, and people moving there will get “more bang for their buck,” according to real estate agent and founder of SparkOffer, Mike Russo.
“It’s a crowded market right now in Greenwich, with over 151 properties currently listed for sale in the $3-5 million range and 45 properties in the $5-7 million range. Looking ahead to [the next decade], we think Greenwich is going to be a prime opportunity for buyers to move to a highly sought-after location at a great price,” Russo told Business Insider.
Jersey City, New Jersey
More than one real estate expert told Business Insider that Jersey City will be the place to be in the 2020s.
“Unfortunately for New York City, I think one of the hottest markets for the next 10 years will be right across the river in Jersey City. … It can be a quicker commute than much of Manhattan, the prices are lower and it’s often much more accessible. A lot of people in NYC are originally from New Jersey and if they’re visiting family, driving from Jersey City is significantly easier than taking public transit from Manhattan or Brooklyn,” Yoreevo co-founder James McGrath told Insider.
PropertyClub founder Andrew Weinberger agreed that Jersey City will be an extremely popular place to be in the 2020s.
“I expect a booming market in Jersey City in the 2020s. … It all starts with the location and excellent value. The area is exactly what millennials are looking for,” he said.
“All in all, the area’s attracting all the right people. You’ve got interest from millennials as well as real estate investors and developers. The city is also very focused on continually improving the infrastructure. There’s even been a proposal for repurposing old abandoned elevated railroad tracks into a park that would be similar to NYC’s iconic High Line Park,” he continued.
Jim Armstrong of JG Real Estate told Business Insider that Philadelphia has all the right factors for growth over the next 10 years.
“Due to a strong economy, affordable housing prices attracting New Yorkers in droves, an expanding labor market, and the third-largest student population on the East Coast, the population is growing faster than the national average,” Armstrong said.
“In addition, Philadelphia real estate appreciated 147% since 2000, 8% in the last year, and is expected to continue due to the increased demand from the growing population. Adding the recent National Geographic honor naming Philadelphia one of the two places in the US on their Best Places to Visit in 2020 list, Philadelphia is poised for a highly competitive rental and housing market in 2020,” he said.
Las Vegas, Nevada
One of the only western cities to make it on our list is Las Vegas, which was recommended by Ashley Baskin, as well.
“Willing to take a risk? Then Las Vegas is a place to consider. One of the cities on the west coast that still offers affordable housing to residents, more people are transitioning to the city for new manufacturing jobs in the area. The downside with Las Vegas is that it is one city that gets hit hard during economic downfalls, so any investor looking in the area should be cautious. Commercial real estate though could be a safer bet since it relies more on tourists, and investors can get a longer-term guarantee from corporate tenants, proving security during any potential economic hit,” Baskin told Business Insider.
Mike Zschunke of Shift1 Properties told Business Insider that Scottsdale, a suburb of Phoenix, is a place to watch in the next decade, as it’s a “super hot market right now and is expected to grow consistently in the next few years.”
“There is a term going around called ‘The Silicon Desert’ as many tech companies are moving to the area to attract young talent mainly due to the low tax rates but also due to the beautiful 300 days of sunshine annually,” he told Insider.
As large corporations such as Nike, Nationwide Insurance and Anderson Windows are moving employees to the Phoenix area, “there will be a need for more housing which should continue to boost home prices over the next few years,” Zschunke said.
“Boston has been recognized as one of the fastest growing cities for job growth, which annually is recognized higher than the national average,” Ashley Baskin told Business Insider.
“Additionally, Boston is filled with students transitioning to the city each year, keeping the town alive; and, due to its historical recognition, Boston is also one of the most commonly visited cities in the states. For investors it is important to note that Boston was even one of the few cities to witness continued rise in home prices during the 2008 recession, making it a safer investment compared to other major cities,” she continued.