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Charlotte named fourth-hottest US housing market, but that might not be a good thing

Charlotte will be the fourth-hottest housing market in 2018, according to a prediction from Zillow.
Charlotte will be the fourth-hottest housing market in 2018, according to a prediction from Zillow.

Charlotte made it onto another list of this year's hot housing markets, this time ranking fourth by Zillow.

But that might not be a great thing if you're buying a house: Charlotte’s prices are expected to keep rising faster than the national average, ticking up 4 percent.

Charlotte was ranked in the top 10 in another forecast for 2018, coming in at No. 7 in a Realtor.com prediction. Like many fast-growing cities, the housing market in Charlotte has been defined by tight inventory, rising prices and climbing rent.

The top three housing markets in 2018 all have strong technology sectors, Zillow said.

San Jose, Calif., came in No. 1, fueled by the still-booming tech companies of Silicon Valley. Raleigh came in second, with the Research Triangle powering much of the growth. And Seattle, home to Amazon.com, came in No. 3 in Zillow’s analysis.

House-flipping is the hottest it’s been in a decade. But it’s nothing like you see on HGTV.

The real estate company looked at the expected home price appreciation and rent increases in the 50 largest U.S. cities, along with statistics about income, population growth, unemployment and job openings to come up with its list.

Charlotte, boosted by the financial sector and a fast-rising population, came in just behind Seattle. San Francisco was No. 5, behind Charlotte.

Other southern cities that made the list included Nashville, Tenn., Dallas and Austin, Texas.

“Growing cities in the Sun Belt, places like Raleigh, Charlotte and Nashville, offer plenty of opportunities healthcare and finance, while providing a less-expensive, but still-convenient, alternative to the larger and pricier markets in the Northeast,” said Zillow senior economist Aaron Terrazas, in a statement.

Here are the top 10 U.S. housing markets, as ranked by Zillow:

1. San Jose, Calif.

2. Raleigh

3. Seattle

4. Charlotte

5. San Francisco

6. Austin, Texas.

7. Denver

8. Nashville, Tenn.

9. Portland, Ore.

10. Dallas

Developer Kelvin Young believes his planned “tiny house” community in northwest Charlotte will create an affordable living situation. But to neighbors, Young’s Keyo Park West is a threat to their property values.

Ely Portillo: 704-358-5041, @ESPortillo

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