The fast-moving tech industry is driving a significant boom in cities like Seattle, San Francisco, Boston and Portland.
So, it should not come as a big surprise that the housing markets in those cities are firing on all cylinders, too.
Now, Redfin, the Seattle-based real estate brokerage, has crunched some numbers and come up with the 30 most competitive neighborhoods in which to buy a home. All of the neighborhoods are located in the four cities mentioned above, with the Inman Square neighborhood in Cambridge, Mass. leading the pack with 68.2 percent of homes sold about the asking price and 38 percent of buyers paying all cash. That was followed by the Overlake neighborhood in Redmond, a hot area located near the worldwide headquarters of Microsoft.
“These four metro areas have set themselves apart in terms of attracting and creating high-wage jobs in tech, pharma, and finance and that has heated up the local housing market. When a short supply of homes collides with high-income homebuyers you get this hot, hyper-competitive climate,” Redfin chief economist Nela Richardson said in a press release.
In fact, of the top 10 most competitive neighborhoods, four are located in the Seattle area: Overlake, Roosevelt, Grass Lawn and Phinney Ridge.
The rising prices in Seattle has led to some backlash against the tech industry, and led political forces in the city to try to come up with solutions to deal with the rising housing prices, so the city remains affordable to the middle class. Mayor Ed Murray recently noted that Seattle is “facing our worst housing affordability crisis in decades.”
The Redfin report also comes on the same day that the S&P/Case-Shiller National Home Price Index found that home values increased 5.2 percent in October 2015, compared the same month last year. The report found that San Francisco, Denver and Portland all had home value gains of 10.9 percent or more.
Here’s a look at the full ranking of the most competitive neighborhoods based on Redfin data: