Zillow’s Top 10 hot housing markets

Seattle-based Zillow, the real estate web site, released its prediction of 2018’s hottest housing markets. The list is replete with some usual suspects, and at the top is San Jose, Calif.

"This list shows that just because a market is smaller or more affordable doesn't mean it isn't dynamic," said Zillow senior economistAaron Terrazas. "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.

Zillow's Top 10 Housing Markets for 2018:

1. 
   San Jose, Calif.


2. 
   Raleigh, N.C.


3. 
   Seattle


4. 
   Charlotte, N.C.


5. 
   San Francisco


6. 
   Austin, Texas


7. 
   Denver


8. 
   Nashville, Tenn.


9. 
   Portland, Ore.


10. 
    Dallas

To identify 2018's hottest housing markets, Zillow looked for places with quickly rising home values and rental prices, low unemployment rates, steady income growth and strong job opportunities with lots of people moving to the area.

In nine out of the 10 markets on Zillow's list, home values are expected to rise at a faster pace than the nation overall, with the exception of Denver. Nationally, Zillow expects home values to appreciate 3.2% over the next year.