Last week, Zillow, a Seattle-based company, released its predictions for this year’s hottest housing markets across the country. With median rent prices of $2,400 and the median home price over $612,000, Seattle was ranked second. Following behind Nashville, it has a forecasted home value appreciation rate of 5.6 percent for 2017.

To compile the list, Zillow looked at three factors in the 100 largest markets: their Home Value Forecast, recent income growth, and unemployment rates in the area. Along with Seattle, the West Coast was well-represented with Portland, OR and Sacramento, CA, with smaller, central markets like Salt Lake City and Provo, UT also expected to see a lot of growth.

“Mid-size cities…are desirable places to live, with good employment opportunities and steady economic growth,” said Zillow Chief Economist Dr. Svenja Gudell in a press release. “The growth and demand for housing will drive up home prices in 2017.”

However, most surprising about Seattle’s ranking were the neighborhoods expected to have the highest home valuation. Neither Medina nor Mercer Island, the wealthiest enclaves in the greater Seattle area, made the cut — rather, Zillow predicted that South Delridge would see home values appreciate by 7.7 percent, and Jackson Place, Rainier Beach, Brighton, and Northwest Bellevue could expect rises between 7.1 to 7.3 percent.

Seattle’s booming rent and home prices — which have increased 31 percent since just 2013 — can be attributed to the soaring population, which grew 2.8 percent from 2013 to 2014. Speaking to the Seattle Met, Seattle Rental Group’s Ashley Hayes also points to the low levels of supply, with homeowners hesitant to put their property on the market in case they aren’t able to find an affordable alternative.

Zillow also predicted that the city’s income would grow by 1 percent and 2017 would see an unemployment rate of 4.4 percent.

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