Markets like San Francisco, Seattle, and New York have regularly made the news for their stressed housing markets and growth, but that’s changing. According to Zillow, under the new COVID normal, mid-sized cities like Huntsville are poised to replace these metros in population and housing growth. Zillow recently ranked Huntsville, AL no. 2 in mid-sized markets to watch.
People are re-evaluating how they want to live now that remote work has become more prevalent. Major markets have reached the limits of their housing affordability, leading remote workers and others to question the need to live in a dense urban area. Buyers are turning to places like Huntsville, where they can get more home for their money.
Zillow looked at home value growth year-over-year, forecasted home value growth, days a home stays on the market, share of homes sold above list price, and month-over-month sale counts for its mid-sized metro analysis. Huntsville’s rising home values–11.5 percent–and a forecasted value increase of five percent helped it secure the no. 2 ranking.
Huntsville real estate demand is driven by more than buyers seeking a single-family home with a yard. Even before the pandemic, Rocket City reported rising demand thanks to factors like population growth, new manufacturing jobs, and job market expansion. The pandemic has caused an acceleration in home values and demand brought on my low inventory.
Mid-sized metros fall between 75-125 of all U.S. metro areas when ranked by population. Living in one combines the best of two worlds. The cities offer many amenities expected of major cities like Chicago and Los Angeles: a vibrant dining scene, entertainment venues, cultural attractions, and retailers.
However, home prices are more affordable than dense urban centers, allowing buyers to find more house and space for the same price of a downtown condo. For example, Huntsville’s second quarter median price of $244,680 would fetch a downtown Atlanta loft condo with 1,633 sq ft, one bedroom, and one bathroom.
The increased interest in the Rocket City means now is an excellent time to consider selling your home and taking advantage of the low inventory conditions.