Redfin Predicts the Hottest Neighborhoods of 2016

Thanks to the data we track on visits to Redfin.com and which homes our customers mark as their favorites, we don’t need to wait until Spring to find out which neighborhoods across the country will be hot in 2016. Based on what our agents told us about these neighborhoods, 2016’s list is all about access to public transit, affordability and charm.

Affordability has topped buyers’ lists of concerns for the past year, and many who dropped out of the market last year because of it are back with more experience under their belts. They’ve done their research and identified those pockets that are still affordable, but also offer the stores, coffee shops and short rides to downtown that make communities livable. This increasingly rare combination can be found in Ukrainian Village in Chicago, Eastwood in Nashville, Ericsson in Minneapolis and other hot ‘hoods across the country.

“For the first time, the San Francisco Bay Area is absent from Redfin’s top 10 hottest neighborhoods list,” said Nela Richardson, Redfin’s chief economist. “After the median sale price surpassed a million dollars in March and inventory dropped to historic lows, San Franciscans have been feeling uninspired by local housing prospects. In fact, one in four Bay Area users of Redfin.com are now searching for homes in other cities. San Diego and Los Angeles, home to some of the the nation’s highest real estate prices, also failed to make the top ranks this year.”

Another trend that has emerged in this year’s hottest neighborhoods is that buyers are looking for homes and neighborhoods with character. Redfin agents report that many buyers are bypassing “cookie cutter” homes in neighborhoods that didn’t make our rankings for the charming original architecture and tree-lined streets that give neighborhoods like Ukrainian Village in Chicago and Mount Pleasant in Washington, D.C their unique personalities.

What Makes a Neighborhood Hot?

Redfin’s Hottest Neighborhoods is a prediction based on the most recent growth we’ve seen in page views and favorites on Redfin.com. We checked in with Redfin agents around the country to find out what’s been driving these trends. Hot neighborhood alums such as Phinney Ridge (2014) in Seattle, Bernal Heights (2014) in San Francisco and Highland Park (2013) in Los Angeles have since become some of the most desirable areas to live in the country.

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