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'Migration magnet': Austin to have top housing market in 2021
(Zillow)

Austin is projected to be the top housing market in 2021, according to a recent study from Zillow.


With more and more large tech companies—such as Oracle, Tesla and Hewlett Packard Enterprises—moving to Austin, increased demand for housing has followed suit. Just last year, by November, 35 tech companies had moved into Austin—bringing more jobs and people to the city.

In the study, Pulsenomics LLC, on behalf of Zillow, interviewed a panel of 113 economists, investment strategists and real estate experts about their predictions on the U.S. housing market in the new year. Of those interviewed, 84% said Austin's home values would be greater than the national average.

In fact, the cities that are slated to do better than the national average—including Austin, Phoenix, Tampa, and Nashville—are in the Sun Belt. Denver is also projected to have a top housing market, although it is not part of the Sun Belt.

These relatively affordable metro areas are becoming the primary destinations for people wishing to get away from the expensive coastal cities such as Los Angeles and New York.

This has been a trend throughout 2020. According to Jeff Tucker, a Zillow senior economist, the pandemic actually accelerated trends we saw in the past year.

The report said that Zillow's 2020 survey of housing markets proved accurate when Austin ended the year with the median list price at a 23.6% year-over-year increase—the largest rise among the 50 largest U.S. markets.

"These Sun Belt destinations are migration magnets thanks to relatively affordable, family-sized homes, booming economies and sunny weather," he said in a release. "Record-low mortgage rates and the increased demand for living space, coupled with a surge of Millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future."

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