Most Popular Housing Markets of 2020
This year has been one of epic changes, to say the least. The spread of Covid-19 has forced us to adapt to a new reality in both our business and personal lives. One of the biggest changes we’ve seen in regards to the pandemic has been the major shift in housing market trends. As people scramble to keep their finances intact, many have made the decision to trade expensive city living for a more affordable, suburban lifestyle. This, coupled with the ability to work and learn remotely, has given people more flexibility when it comes to deciding where they want to live. Additionally, the Federal Reserve’s decision to slash interest rates in hopes of boosting the unprecedented economic instability from the pandemic, has given homebuyers even more of a reason to take advantage of the situation. And taking advantage they are!
According to a study that analyzed change-of-address data conducted by the United States Postal Service®, over 15.9 million people have moved during the coronavirus (USPS). Compared to data from 2019, 2020 saw a 4% increase in total movers, a 2% increase in permanent movers, and a 27% increase in temporary movers (MYMOVE.com).
Throughout the pandemic, we’ve witnessed increased growth in MartelTurnkey’s two markets: Memphis, Tennessee and Cleveland, Ohio. These two cities, along with 23 others, have become the most popular and desirable destinations of 2020, based on the amount of home sales and price growth. The criteria we use at MartelTurnkey in order to determine the best cities to invest in are: Rent to Value Ratios, Diverse Workforce, Stable Population and Stable Job Growth. Throughout the pandemic, we’ve kept our eyes on these trends to ensure that our projections are always ahead of the curve. Below is a breakdown of the cities with the most notable home sales and price growth in 2020, and the reasons for why people are moving to them in such high numbers.
According to several studies, the reasons people are moving have been the following: the inability to afford current housing due to COVID-related loss of income; wanting to move to shelter-in-place with family or friends; not feeling safe where they live due to a higher rate of COVID spread; moving to a location with a smaller amount of COVID cases; moving to places with fewer COVID restrictions; and taking advantage of lower interest rates (HireAHelper.com).
Additionally, the studies indicate that the majority of movement seems to be away from large, bustling cities and towards smaller, more suburban ones. According to all of the market data collected, realtor.com concluded that the number one city people have been moving to during 2020 is Boise, Idaho, which has skyrocketed to number one from number eight just last year. Boise’s drastic increase in home sales is in part due to its affordability, along with its mild climate and major employers, including HP and Micron Technologies. Number two is McAllen, Texas, and three, Tucson, Arizona, due to the affordability of homes in both areas. Below is the full breakdown of the top 25 housing markets:
|2020 RANK||METROPOLITAN AREA||MEDIAN SALES PRICE|
|7||Colorado Springs, Colo.||$312,000|
|9||Charleston-North Charleston, S.C.||$270,000|
|11||Salt Lake City, Utah||$338,000|
|15||Spokane-Spokane Valley, Wash.||$252,000|
|20||New Haven-Milford, Conn.||$220,000|
|21||Portland-South Portland, Maine||$295,000|
|22||Cape Coral-Fort Myers, Fla.||$236,000|
|25||Tampa-St. Petersburg-Clearwater, Fla.||$219,000|
We are pleased that MartelTurnkey’s two markets – Memphis, TN and Cleveland, OH, fall at number ten and fourteen on the list. This can be attributed to the fact that we have teams on the ground in both cities who see what is happening and advise us on where to buy within a zip code, and sometimes even down to street level. As mentioned above, we evaluate several factors when choosing a city: Rent to Value Ratios, Diverse Workforce, Stable Population and Stable Job Growth.
George Raitu, senior economist at realtor.com, explains that housing markets in 2020 show a clear shift from previous years. “For the last eight years, we’ve seen a rising tide lifting all cities,” he said. “I think 2020 will see a sharper delineation in geography” (realtor.com). One example of how this year’s trend differs from those of the past is the shift away from coasts. Every city mentioned in the list above is far from the coast, except for Charleston, South Carolina, being the outlier. It’s also interesting to note that although there is a shift away from big cities, many of these cities are what can be described as “sister cities”, such as Memphis, meaning that although they’re smaller, they’re close enough to large cities (such as Nashville), to make them desirable alternatives.
Just like Memphis and Cleveland, the cities on this list also offer their residents plenty of job opportunities and growth. “As a river city, Memphis is known as a booming transportation and industrial hub, and is home to the second largest cargo airport in the country as well as the FedEx Corporation Headquarters,” (MartelTurnkey.com). Cleveland is home to ten Fortune 500 Company headquarters, has world class medical teams at the Cleveland Clinic, and has a large Amazon presence that continues to grow. Therefore, the job opportunities alone in these two cities are just one of the many reasons MartelTurnkey chooses to buy property in them.
Although 2020 has been a chaotic year to say the least, the housing market has witnessed unbelievable growth and opportunity. That’s why, at MartelTurnkey, we are so passionate about helping our clients invest in properties in the markets we serve. The growth, affordability and job opportunity that our two markets offer are unparalleled, as demonstrated by practically every study conducted this year. With an economy that’s so uncertain, it’s important to invest in something that is certain. A turnkey rental in two of the country’s most up-and-coming and desirable locations is going to provide you with the passive income you need in order to ensure a financially stable future. If you’d like to learn more about investing in a turnkey rental, head to MartelTurnkey.com. On our page “Our Markets”, we break down each city that we invest in, the benefits of investing in those cities, and the property management teams that are involved in the process.