S.E. Williams | Executive Editor
The real estate listing website, realtor.com has included the Riverside, San Bernardino and Ontario region on its list of what it projects will be the top 10 housing markets of 2021.
The markets included on the list were selected based on what the organization described as “[Their] substantial momentum from 2020 which they will carry into 2021.” Four of the 10 regions included on the list are in California including Riverside, San Bernardino and Ontario.
Due to Southern California’s high cost of living, Riverside’s relative affordability and strong school system, including Riverside Stem Academy (9/10 greatschools.org), have made it a popular destination for first time home buyers, growing families, and retirees. The area’s median home price is $475,050.
It is anticipated the still low mortgage rates expected most of this year, will help these markets see price and sales growth on top of 2020’s high levels.
Among the things these top markets have in common is most of these areas are not cheap. Home prices in eight of the top 10 markets are more expensive than the average of the top 100 markets. Yet, many are relatively affordable when compared to their nearby counterparts or offer significantly more square footage for a similar price. For example, comparing Riverside ($247 per sq. ft.) with places like Los Angeles ($556 per sq. ft.) or Oxnard ($413 per sq. ft.).
Another factor placing these areas in the 10 include on average, they have a larger share of younger households, aged 25 to 34, (14.1%) as compared to the national average of (13.5%).
“A market’s ability to lure millennials is a good indicator of the livability of the area including job opportunities, dining, and entertainment,” noted the report. However, when it comes to millennials purchasing homes in the top 10, two trends are emerging.
In half of this year’s top markets, including Riverside, millennials are already homeowners and expected to make most of the home purchases that drive home price growth and sales. In the other group of markets, like San Jose for example, the high cost of living has made home ownership a difficult accomplishment, not only for millennials but for all generations. The high number of millennials in the market shows how popular these markets have become, but older, more financially established generations will be the ones purchasing most of the homes next year.
“Home buyers, particularly younger first-time buyers, looking in one of these markets should expect rising prices and heavy competition,” according to the analysis. Meanwhile, sellers are expected to remain in a position of power, though they will also find themselves on the other side of the bargaining table when buying their next home.