San Jose, California has emerged as the hottest city to live in, with nine of the top 10 hottest neighborhoods in the U.S. located in this tech hub, according to a survey by online real estate broker, Redfin. The survey, which was released on Monday also listed the hottest, yet affordable neighborhoods (Hottest Neighborhoods within Reach) with Hillcrest in Washington, D.C., topping this list.
For this survey, Redfin ranked neighborhoods across 49 metropolitan areas on the basis of most recent growth in page views and favorites on Redfin.com as well as responses from Redfin agents around the U.S. to find out what drove these trends.
The rankings for the 10 Hottest Neighborhoods pointed to a trend of migration among people living in the San Francisco Bay area. “While the San Francisco peninsula has traditionally been the hottest of the hot places, we’re seeing it become unaffordable for even the tech giants that helped create its demand,” said Kalena Masching, Redfin’s Silicon Valley agent. “The result has been a tech-worker migration to the South Bay charged by people looking for relative affordability, highly rated schools, short commutes and access to jobs.”
It’s not surprising therefore that the hottest neighborhoods are now shifting to neighboring San Jose. With a median selling price of $1.5 million, Bucknall in San Jose topped the list of hottest neighborhoods, followed by Cambrian, San Jose, where the median price of homes is at around $1.2 million.
White Oak, Ortega, West Santa Clara, Sunnyvale West, Lakewood, Blacow, and Rex Manor, all in San Jose were the other seven neighborhoods that were ranked among the 10 Hottest Neighborhoods. At No.8, Sunnyside, San Francisco was the only non-San Jose neighborhood to make it to the list.
Redfin also compiled a list of 2018’s Hottest Neigbhorhoods Within Reach that reflected a home price of $286,700, which was also the national median sale price in December 2017. While the 10 Hottest neighborhoods list was concentrated on one particular city, 2018’s Hottest Neighborhoods Within Reach threw up a more geographically diverse set of results and pointed to a trend of people choosing livability over affordability while buying homes in these neighborhoods.
“Features like easy commutes, farmer’s markets and proximity to parks or the beach all represent livability characteristics that many people value when searching for homes. Also, these areas have a mix of single family homes, condos and townhouses, which make the neighborhoods accessible to a wide range of incomes,” said Nela Richardson, Chief Economist at Redfin.
Hillcrest in Washington, D.C., topped this list with a median housing price of $125,000. With a median housing price of $248,500, Deanwood, again in Washington, D.C., came second on the list. These frontrunners were followed by Riverview, Seattle; Misty Meadow, Columbus; Fairmount, Providence; Stevens Square, Minneapolis; Brewer’s Hill Milwaukee; Country Lakes, Chicago; Downtown St. Louis, St. Louis; and South Coast, Orange County.