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The housing markets expected to be the strongest in 2021 are tech hubs with strong job creation, state capitals where home shoppers may get more square footage for their money, and smaller cities with greater affordability. To develop the list, researchers factored in past sale prices and the number of sales; rate of new construction; and previous and anticipated economic, household, and income growth. Here are the seven metros predicted to outperform other housing markets in 2021:

1. Sacramento, Calif.

Median home price: $554,000

Anticipated home price change: 7.4%

Next year’s hottest market is expected to be none other than the sleepy capital of California, about 90 minutes northeast of San Francisco. The city has seen a rush of buyers coming from the ultra expensive Bay Area in search of more reasonably priced homes set on a decently sized plot of land they can call their own. Many of these new residents are white-collar workers who are now able to work remotely, but don’t want to venture too far from their offices. For roughly $500,000, buyers lucky enough to find a home can score a four-bedroom, three-bathroom, single-family abode in the suburbs.

2. San Jose, Calif.

Median home price: $1,199,050

Anticipated home price change: 10.8%

San Jose, in the heart of Silicon Valley, is expected to remain one of the nation’s most expensive metros due to the tech industry. Even as more workers embrace telecommuting, the area remains home to companies such as Google, Apple, Facebook, and LinkedIn. Other perks in the area are the top-notch schools, which draw families. While the median home price here is still among the highest in the nation, buyers get more for their money than in the Bay Area’s other reigning metro.

3. Charlotte, N.C.

Median home price: $368,820

Anticipated home price change: 5.2%

This Southern city has long been known as a financial hub, as it’s where Bank of America is headquartered. But it now also boasts innovative restaurants, a growing tech scene, and good schools, which appeal to millennials with young families. It’s also become a popular destination for retirees seeking warm weather and a reasonable cost of living, but who don’t want to travel all the way to Florida. And it provides easy access to both the beach and the mountains. Buyers can score deals on homes such as a four-bedroom, 2.5-bathroom for $250,000.

4. Boise, Idaho

Median home price: $445,000

Anticipated home price change: 9.1%

Boise, which was ranked No. 1 last year on our top markets list, has lured Californians tired of paying high prices in the coastal cities. This mountain lover’s dream city has a burgeoning tech sector, which has attracted many millennial and Generation X workers. Retirees also like it because they can sell their homes on the coast, pocket the proceeds, and buy nice residences for much less in Boise. Boise has a hopping food and arts scene and plenty of outdoor activities, including whitewater rafting and skiing.

5. Seattle

Median home price: $629,050

Anticipated home price change: 9.7%

The metro area that gave us Microsoft is now also home to online retail giant Amazon as well as Starbucks and Costco. In addition to the strong local economy, the area is also close to the water, the mountains, and top-notch wineries. There are plenty of highly rated schools as well. And it has all of the cultural perks that most cities offer such as restaurants and bars, museums, and major league sports teams. Buyers in search of a good deal can find two-bedroom, one-bathroom townhomes within the city limits for $350,000. Or they can venture out to the suburbs, where they can get a four-bedroom, three-bathroom home for nearly $450,000.

6. Phoenix

Median home price: $412,260

Anticipated home price change: 7%

The state capital of Arizona is another one of those cities that appeal equally to millennials and retirees thanks to its dry heat, reasonable cost of living, and plethora of golf courses (more than 400 to choose from). Like many of the other markets on this list, the area is drawing buyers from the West Coast seeking affordability. In response, builders have launched a herculean effort to put up new housing to meet that demand. The area’s growing tech sector has been attracting millennials, along with its shopping, dining, and cultural amenities.

7. Harrisburg, Pa.

Median home price: $262,000

Anticipated home price change: 3.8%

The capital of Pennsylvania is a two-hour drive from Philadelphia and Baltimore, 2.5 hours from Washington, DC, and roughly three hours from New York City and Philadelphia. That’s practically a dream for professionals who are now able to work remotely, but want to live close enough to their offices to make the occasional appearance. It’s the only metro on the list to have a median list price less than the national median. That makes it especially attractive to younger and first-time buyers who are priced out of the larger cities. And there are plenty of government, shipping, and health care jobs to be found locally. While prices are steadily rising, buyers can still find a “nice” three-bedroom, two-bathroom home in the suburbs for around $250,000.

Text by Clare Trapasso | Photo by icastle.com | Read More Here