America’s Fastest-Growing Housing Markets Now

Real estate prices rose sharply in 2020 and continue to climb. The typical U.S. home value is $269,039, and low mortgage rates helped push average home prices up 22.2% from 2019. Existing home sales reached their highest level since 2006, according to the National Association of Realtors.

That surge makes 2020 and 2021 a great time to own a home but a challenging time to buy one, especially in certain markets. Based on a Zillow survey of 113 experts, the following metro areas were forecast to be the hottest housing markets in 2021. Expect rising prices, bidding wars and tight inventories in these cities. If you already own property there, selling will likely be easy. If you’re a buyer, be prepared for stiff competition.

15. Minneapolis, Minnesota

Population: 420,324

Home Values in Minneapolis

Typical home value: $308,108

Market value score: -22

Minneapolis saw higher sales, strong price growth and very low supply levels, according to the Minneapolis Area Realtors. Some observers suggest the city’s 2019 change to single-family zoning increased interest in traditional single-family homes rather than immediately increasing supply. Among Zillow’s experts, 20% expected Minneapolis to outperform the national average while 42% expected underperformance.

14. Seattle, Washington

Population: 724,305

Home Values in Seattle

Typical home value: $813,154

Market value score: -16

While only 29% of Zillow’s experts expected Seattle to outperform the national average, local agents reported homes selling above listing price because of low inventory. Studies during 2020 also ranked Seattle highly among large-city real estate markets.

13. Las Vegas, Nevada

Population: 634,733

Home Values in Las Vegas

Typical home value: $310,128

Market value score: -6

Despite a major pandemic shutdown and high unemployment, Las Vegas experienced fast home sales and an 11% year-over-year price increase. Analysts predicted the market would remain strong into 2021, though future growth might be more measured than 2020’s spike.

12. Houston, Texas

Population: 2.31 million

Home Values in Houston

Typical home value: $204,810

Market value score: -2.9

Houston’s housing market added about $42 billion in value in 2020, the largest increase among Texas metro areas. A strong construction sector and optimistic local real estate professionals supported expectations that Houston could outperform the national average.

11. San Diego, California

Population: 1.41 million

Home Values in San Diego

Typical home value: $689,361

Market value score: -2.8

San Diego posted one of the fastest home price increases in 2020, driven by low supply and low mortgage rates. Forecasts in early 2021 projected continued growth, with single-family home prices expected to rise faster than the national average.

10. Miami, Florida

Population: 454,278

Home Values in Miami

Typical home value: $389,138

Market value score: 1

Miami’s single-family inventory reached a record low, fueling a hot market and a booming luxury condo sector. Strong sales in late 2020 suggested the upward trend would continue into 2021.

9. Riverside County, California

Population: 326,414

Home Values in Riverside

Typical home value: $474,150

Market value score: 7

As Los Angeles residents get priced out, many are moving to surrounding areas like Riverside. Prices there rose substantially in 2020 and were forecast to climb further in 2021, with a larger share of experts predicting above-average performance.

8. Washington, D.C.

Population: 692,683

Typical home value: $672,601

Market value score: 13

Washington, D.C., maintained a stable market with particularly strong demand in the luxury segment, where limited inventory pushed many sales into bidding wars. Experts were generally optimistic that D.C. would outpace the national average.

7. Atlanta, Georgia

Population: 488,800

Home Values in Atlanta

Typical home value: $311,092

Market value score: 38

Atlanta experienced a sharp drop in supply in 2020, with significantly fewer available homes and nearly 17% higher sale prices. A majority of experts expected the market to remain very active in 2021, creating affordability challenges for some buyers.

6. Dallas-Fort Worth, Texas

Population: 7,573,136

Home Values in Dallas-Fort Worth

Typical home value: $273,348

Market value score: 39

The Dallas-Fort Worth market, valued at hundreds of billions, saw dramatic inventory declines—roughly a 46% drop from 2020 to 2021—leading to faster sales and frequent above-list offers. Most experts expected the market to outperform the national average.

5. Denver, Colorado

Population: 705,576

Home Values in Denver

Typical home value: $498,911

Market value score: 44

Denver’s market had been strong for years with double-digit appreciation in 2020 and limited inventory. Local realtor associations reported even higher median prices than some national sources, and a majority of experts expected Denver to outperform the national average.

4. Tampa, Florida

Population: 387,916

Home Values in Tampa

Typical home value: $281,097

Market value score: 54

Tampa-area homes were selling very quickly—averaging about 10 days on market in late 2020—and forecasts projected further price gains. Most experts expected Tampa to outperform the national average, driven by strong demand and constrained supply.

3. Nashville, Tennessee

Population: 1,692,587

Home Values in Nashville

Typical home value: $316,078

Market value score: 55

Nashville continued to see strong demand as new buyers, including many millennials, entered the market. Inventory hit multi-year lows in parts of the region, and experts widely expected continued outperformance.

2. Phoenix, Arizona

Population: 1,633,000

Home Values in Phoenix

Typical home value: $310,514

Market value score: 60

Phoenix experienced a large influx of new residents and a sharp drop in inventory, creating intense competition and frequent above-list offers. Many experts expected Phoenix to outperform the national average based on those demand trends.

1. Austin, Texas

Population: 950,807

Home Values in Austin

Typical home value: $454,896

Market value score: 76

Austin topped the list as the hottest projected market. Severe supply constraints and strong demand drove prices upward, and local events such as the February winter storm briefly disrupted transactions but did not dampen overall demand. Prior to that storm, some listings received exceptionally high numbers of offers, and a large majority of experts expected Austin to significantly outperform the national average.

Note: Market value scores referenced above were derived from a Zillow expert survey that compared the share of respondents who expected each local market to outperform, match or underperform the national average. Scores range from -100 to 100 and reflect experts’ aggregated expectations at the time of the survey.