US is short nearly 4M new homes: report

The U.S. is short 3.8 million new homes

The U.S. is short 3.8 million new homes

The housing shortage in the U.S. is deepening despite strong demand, and a new report found that builders must construct nearly four million new homes to catch up.

Almost 9.8 million households were formed between 2012 and 2019, but just 5.9 million new single-family homes were constructed during that period, according to listings website Realtor.com.

The report found it could take four to five years to fill the void of 3.8 million homes. That estimate comes even as single-family home construction starts per 1,000 households rose to 7.3 last year from 4.6 in 2012, according to Realtor.com. The eight-year average is 6.2 starts per 1,000 households, which is under the two-decade average.

“We still have a relative lack of supply,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association. “Building has just not kept up with demand for the past several years.”

Because of this deficit, the listings platform predicts existing home sales will drop 1.8 percent this year. And the group expects the median price growth of those existing homes to rise a tepid 0.8 percent.

The demand is there to build more houses. Baby boomers are not leaving their homes and millennials are increasingly starting families, said Morris Davis, real estate professor and academic director of the Rutgers Center for Real Estate in Newark.

But demand for new housing is most pronounced in and around the gateway cities, where there is ample employment, Davis said.

“I do believe places like California and, to a lesser degree New York need an injection of housing to keep up with the demand of people” moving to those areas, he said.

While the country may need to add almost 4 million homes to its inventory, other estimates have found that the need for new homes in California alone could be nearly just as much: The state needs to build between 1.8 million and 3.5 million new homes by 2025 to help tackle homelessness and soaring housing prices.

The nationwide housing shortage is nothing new.

Since 2001 the U.S. has constructed 17.6 million new single-family homes, a figure that has fallen short of the 20.2 million households that have since been created. That translates to a gulf of 2.6 million homes, according to Realtor.com.

At one point in the early 2000s, new home construction outpaced new household growth. But the financial crisis changed that, and builders pulled back. While housing starts picked up again during the economic recovery, growth has been anemic, according to Realtor.com’s report.

Zoning constraints and ballooning construction costs have hampered the construction of both single-family homes and multifamily buildings, said Richard Koss, an adjunct professor at Columbia University who also is chief research officer of mortgage fintech firm Recursion Co.

Still, there are signs that housing production could improve in 2020. Housing starts in December jumped to 1.6 million, marking a 13-year high, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Just over 1 million of those starts were single-family homes.

But Koss cautioned against looking at one month’s worth of data for substantive change.

“We’ll see in the next couple of months,” he said. “We can always be surprised.”

Write to Mary Diduch at [email protected]

Waterfront lot on North Bay Road sells for $7M

4424 North Bay Road, Karen Stauber (right) and Neil and Jennifer Sazant (Credit: Getty Images)

4424 North Bay Road, Karen Stauber (right) and Neil and Jennifer Sazant (Credit: Getty Images)

A waterfront property on North Bay Road, once owned by former Formula One race car driver Eddie Irvine, sold for $7 million after being tied up in litigation for more than a decade.

Jennifer Taplin Sazant and Neil Sazant bought the vacant lot at 4424 North Bay Road in Miami Beach, said Karen Stauber of the Jills Zeder Group of Coldwell Banker, who represented the buyers in the deal. They plan to build a home to live in, designed by architect Kobi Karp, Stauber said. Taplin Sazant is the daughter of the late Marty Taplin, who owned the Sagamore Hotel South Beach.

The 15,800-square-foot lot sold for $443 per square foot. The seller was JP Morgan Chase Bank, records show. Lindsay McMinn of Berkshire Hathaway HomeServices EWM Realty represented the seller. The property had been listed for nearly $7.5 million.

The bank took over the property through foreclosure in 2017. Gabriel Martin, a former Miami lawyer, and former property owner Jason Zabaleta, were allegedly involved in mortgage fraud on the former home. Martin had been hired as the closing agent for the buyer in Irvine’s sale of the house in 2005, according to published reports. The foreclosure litigation began in 2009. The previous home was torn down last year, McMinn said.

North Bay Road has attracted some of the priciest sales in Miami Beach. In August, a California buyer purchased a waterfront spec mansion at 6360 North Bay Road for $23.85 million and a lot next door at 6342 North Bay Road for $11.55 million. The combined $35.4 million sale marked a record for the year in Miami Beach.

Among other sales on North Bay Road, Yext founder and CEO Howard Lerman paid $17 million for a spec mansion at 6010 North Bay Road in February. In July, Karp and his wife Nancy paid $8.5 million for the home at 4750 North Bay Road.

Other high-profile homeowners on North Bay Road include Starwood Property Trust’s Barry Sternlicht, JDS Development’s Michael Stern, singer-songwriter Phil Collins, and basketball stars Chris Bosh and Dwyane Wade.

Northern Virginia’s housing market is still feeling the “Amazon effect”

Crystal City, Virginia and Amazon CEO Jeff Bezos (Credit: iStock, Getty Images)

Crystal City, Virginia and Amazon CEO Jeff Bezos (Credit: iStock, Getty Images)

The housing market in northern Virginia took off as soon as Amazon announced it would be bringing half of its second headquarters to Crystal City, and that boom shows no signs of letting up more than a year down the line.

Data released by the Northern Virginia Association of Realtors shows that the average home sale price in Alexandria City and Arlington and Fairfax counties rose by 4 percent, from $590,582 in 2018 to $614,236 in 2019. While total sales remained on par with the previous year, rising prices drove up total dollar volume.

“Northern Virginia has been the region’s leader in job creation, and as Amazon and other local employers build their workforces in 2020, this should help sustain our strong Northern Virginia housing market,” NVAR chief executive Ryan Conrad told WSUA, the local CBS affiliate.

The tech company plans to eventually bring 25,000 employees to the area, and 400 are already working from leased space, Inman reported. Construction on the Crystal City headquarters – owned by real estate firm JBG Smith – is set to begin early this year.

Inventory in the area surrounding Crystal City fell drastically in the wake of Amazon’s November 2018 announcement. The amount of time the average home stays on the market in northern Virginia has been cut in half, falling to 24 days compared to 55 days in 2018.

Amazon’s announcement produced a similar wave of excitement in Long Island City’s real estate circles, but those effects have long worn off following the e-commerce behemoth’s decision to scrap those plans in the face of local opposition. [Inman] — Kevin Sun

This European city has the world’s fastest rising home price

Budapest (Credit: Pixabay)

Budapest (Credit: Pixabay)

In the elegant Hungarian capital of Budapest, it’s good news for home sellers and not so good news for buyers.

No other city in the world saw prices climb higher than in Budapest in the third quarter of 2019. The price of a home rose 24 percent year-over-year, according to a Knight Frank study cited by Mansion Global.

It wasn’t a fluke for the city of 1.7 million — it topped Knight Frank’s list of highest-risers in the fourth quarter of 2018 and the first quarter of 2019. The report pinned Budapest’s upward trajectory on falling unemployment and growing wages.

That’s four times the rate of the U.S. city with the fastest rising prices, Phoenix, which experienced 6 percent year-over-year growth.

The city of Xi’an in central China overtook it in the second quarter, but fell back to number 2 with 15.9 percent growth in the third quarter. Another Chinese city, Wuhan, ranked third in the world with 14.9 percent growth. Russia’s Saint Petersburg and Moscow were both in the top 10.

Prices rose in 78 percent of the 150 cities included in the report, but the 3.2 percent global average is the slowest since the second quarter of 2015 and a number of top U.S. markets saw growth below that.
New York and Chicago saw prices move up by less than a percentage point. Prices rose 1.7 percent in Los Angeles and 3.1 percent in Miami. Prices fell 0.7 percent in San Francisco.
Prices also fell in some top-tier cities around the globe, including London and Hong Kong. Jerusalem saw the most significant drop, with prices falling 13.6 percent year-over-year. [Mansion Global]

Opportunity Zone investigation won’t derail developer investment, experts say

Treasury Department watchdog is investigating the Opportunity Zone program (Credit: iStock)

Treasury Department watchdog is investigating the Opportunity Zone program (Credit: iStock)

The Treasury Department’s investigation into the Opportunity Zones program will weed out the bad apples but won’t derail the federal tax incentive initiative, investors and developers say.

Instead, the probe could provide a way for companies with Opportunity Zone funds to promote the social impact of their investments, and could push to strengthen reporting requirements on those investments.

“The more that’s cleaned up the better the program is going to do in the long term,” said Gray Lusk, a founding partner of Sola Partners, which has raised $100 million for affordable housing projects in Opportunity Zones. 

Introduced as part of the Trump administration’s 2017 tax overhaul, Opportunity Zones were meant to spur investment in low-income communities across the U.S. by allowing investors to defer or forgo paying capital gains taxes on developments in designated areas.

The program caught the attention of institutional investors but has also faced mounting criticism for serving as a tax break for wealthy developers and politically-connected insiders looking to build luxury projects in upscale areas.

Treasury’s investigation — launched this week by the deputy inspector general — will only look into whether some census tracts were selected improperly, according to several Opportunity Zone experts. The program itself, whose guidelines the government has updated twice, will remain intact, they say. The government has not provided details on the investigation.

“Even in the worst case scenarios, you are talking about a couple [census] tracts out of about 8,700,” said Steve Glickman, an architect of the Opportunity Zones legislation who now consults businesses on the  program. Another expert, Neisen Kasdin, agreed, saying inquiry is “just looking at bad actors.” Kasdin is managing partner at the law firm Akerman in Miami, whose firm has been involved in several Opportunity Zone deals

Under the microscope

The government investigation was launched at the request of three Democrats: New Jersey Sen. Cory Booker — who co-authored the Opportunity Zones legislation — Congressman Emanuel Cleaver II of Missouri and Congressman Ron Kind of Wisconsin. The group said it wants to know whether certain Opportunity Zone designations benefited firms or individuals with ties to political leaders, following reports by ProPublica and the New York Times.

In one example, a 700-acre industrial development in Nevada — part-owned by billionaire financier Michael Milken — became eligible for a tax break after the Treasury Department overrode its own rules to designate the area as an Opportunity Zone. A report by the Times revealed that Treasury Secretary Steve Mnuchin, who has close ties to Milken, personally intervened to designate the area, a move that troubled Treasury officials.

Other firms with links to the Trump administration have been similarly scrutinized. The family development firm owned by Jared Kushner, a senior adviser to President Trump and his son-in-law, has properties in Opportunity Zones that include $13 million of New Jersey beachfront.

“The whole thing is structured for favoritism and insiders,” said Greg LeRoy, founder of Good Jobs First, a watchdog of state and local economic development subsidies. “You allow one person discretion over big federal tax breaks, it’s a blueprint for mischief.” 

Painting a broad brush

But proponents argue that these criticisms paint a broad brush over a program that is attracting private investment into long overlooked parts of the country such as Birmingham, Alabama, where a long vacant building in an Opportunity Zone will be turned into 140 units of workforce housing.

“When you look at the facts, it does not support the narrative that some are trying to make,” said Jill Homan, the co-founder of Javelin 19 Investments. The Washington, D.C.-based commercial real estate investment company has a focus on Opportunity Zones.

The new investigation could also lead to tougher reporting mandates in Opportunity Zones.

Sen. Tim Scott of South Carolina and a group of fellow Republican senators introduced a bill in December seeking to enhance reporting requirements to help reduce fraud and abuse regarding Opportunity Zone investments. Scott co-authored the original Opportunity Zones legislation with Booker. Their bill adds penalties for individuals and investment funds that fail to accurately and appropriately file the required returns or statement. Democratic Sen. Ron Wyden of Oregon put forward a separate bill requiring OZ investors to report more information about the impact of their investments.

Opportunity Zones investment has surged in recent months thanks in part to the government’s release of its final set of regulations meant to provide investors and developers.

Close to $2.3 billion was put into Opportunity Zone funds between early December and early January, according to a survey from accounting firm Novogradac, a 51 percent increase over the prior month. In October, the firm found that 103 Opportunity Zone funds had raised just 15 percent of what fund managers expected. It knew of 285 Opportunity Zone funds in the U.S., though many have not shared fundraising metrics.

But others have been far more successful. 

Last year, Bridge Investment Group deployed $950 million from its Opportunity Zone fund into 20 projects across eight states and the District of Columbia. David Coehlo, chief investment officer for the Salt Lake City-based firm’s Opportunity Zone program, said he expects to deploy a similar amount this year, largely because competition has eased as smaller funds are facing challenges raising capital.

“We see no reason to pull back this year from a deal standpoint,” he said. 

On a smaller scale, Los Angeles-focused Sola Partners expects to double its equity deployment in Opportunity Zones this year to $67 million, according to founding partner Gray Lusk. 

Not all investors are as enthusiastic. Cadre, a real estate investment startup that Jared Kushner co-founded and remains an investor in, is planning to scale back its Opportunity Zone investments. 

People familiar with the company said the firm invested more than $200 million across five Opportunity Zone projects in 2019. This year, it plans to only invest in one to three projects, they said, as a December 2021 tax benefit deadline approaches.

Miami board votes to repeal Special Area Plans

From top: Miami Produce Center, Mana Wynwood and Magic City Innovation District

From top: Miami Produce Center, Mana Wynwood and Magic City Innovation District

Special Area Plans have enabled developers to build massive projects in the city of Miami like Brickell City Centre, River Landing Shops and Residences, Mana Wynwood, the Miami Produce Center, and Magic City Innovation District.

SAPs have also antagonized neighborhood activists who fear that such massive developments destroy the character of low-rise neighborhoods and speed up the displacement of individuals and families who can’t afford the skyrocketing rents or property taxes.

Now, the Miami Planning, Zoning and Appeals Board is recommending that no other SAPs be approved.

By a vote of 6 to 3 on Wednesday, the board approved a resolution to repeal the Special Area Plan provision that enables property owners who assemble more than 9 acres of land to seek extensive zoning changes.

Such a repeal still needs to be approved, twice, by the Miami City Commission, which is embarking on its own review of the entire Miami 21 zoning code, including SAPs.

Planning board member Adam Gersten cast one of the dissenting votes, saying he feared that commissioners may simply ignore a recommendation to repeal, and advocated for a moratorium on SAPs instead. As part of that moratorium, the board could recommend reforms, including that the SAP causes no net loss of affordable housing in the surrounding area, Gersten suggested.

Chris Collins, another dissenting voter, agreed. “I think it would be more proactive and go a longer way if we specify what we want to change and how to change it,” Collins said.

But board member Alex Dominguez said that while the city tries to “workshop this thing to death,” more people are being displaced by legislation that encourages land speculation. “If you do a moratorium… it’s like putting lipstick on a pig, and at the end of the day, it’s still a pig,” Dominguez said.

He also argued that many real estate developers “don’t even want to touch SAPs” because of the community opposition they tend to attract. “It’s not a big deal to repeal SAPs from Miami 21,” Dominguez said, adding that “keeping it alive and tweaking it is affecting a hell of a lot more people negatively rather than positively.”

Neisen Kasdin, a land use attorney affiliated with Akerman, rose in defense of SAPS, arguing that the legislation has enabled “good” projects like the expansion of Ransom Everglades private school in Coconut Grove and the ongoing construction of an EmpathiCare Village for Alzheimer’s patients at Miami Jewish Health Systems in Buena Vista. SAP developers must also offer “community benefit agreements” in exchange for approval, Kasdin added.

“If you pass this legislation, you are not just throwing the baby out with the bath water, you are throwing out the baby,” Kasdin said.

But Marleine Bastien, executive director of Family Action Network Movement, said one of Kasdin’s clients, Magic City Innovation District, is an example of a “bad SAP” that has already indirectly led to the displacement of several residents and small businesses. That project, which was approved by the city commission last June, is being challenged in court by Warren Perry, a Little Haiti resident affiliated with FANM. One of the project’s initial investors, Robert Zangrillo, is also fighting charges from the U.S. Attorney’s Office related to the college admission fraud scandal, as well as charges from the Federal Trade Commission that he co-owned fraudulent websites.

Leonie Hermantin, a board member of Concerned Leaders of Little Haiti, said that although her organization supported the Magic City Innovation District, the group is also in favor of repealing the SAP provision.

“We know that the impact of multiple SAPs in our community will be detrimental,” Hermantin told the board. “I agree with Mr. Kasdin. There are good SAPs and there are bad SAPs. The problem is, unfortunately, that bad SAPs have been allowed to go through.”

The board has kept one controversial SAP in limbo: Eastside Ridge, a proposed 5.4 million-square-foot project that will be built less than a mile from the 8.2-million-square foot Magic City Innovation District and across the street from Miami Jewish Health. The planning board has continued the project five times, with members demanding improvements. In response, SPV Realty, Eastside Ridge’s developers, filed a lawsuit demanding that the board make a decision on the project — either recommending for or against it — so that it can be heard by the Miami City Commission.

Board member Anthony Parrish said Eastside Ridge helped make up his mind on whether or not to support repealing SAPs.

“One attorney of a major project said, ‘Just deny us. We just want to get to the commission,’” Parrish said. “That is what provided, at least for this member of the board, a need to repeal this.”

David Edelstein sells Wynwood site to AMLI for $35M

David Edelstein and a rendering of the Wynwood site

David Edelstein and a rendering of the Wynwood site

Developer David Edelstein sold an assemblage in Wynwood to multifamily giant AMLI Residential, The Real Deal has learned.

Edelstein of New York-based TriStar Capital sold the “45 Winwood” development site to AMLI for $35 million. Together, the properties are zoned for 669,600 square feet and 321 residential units. The assemblage, at 45 Northwest 24th Street, between Northwest Second Avenue and North Miami Avenue, is currently home to five buildings with 41,000 square feet of commercial space.

AMLI plans to develop the land into a mixed-use project with 321 residential units and 45,000 square feet of retail, Edelstein said.

Cushman & Wakefield’s Robert Kaplan, Robert Given, Errol Blumer, Mark Rutherford and Ricky Giles represented TriStar Capital in the deal. Edelstein received interest from Toll Brothers, Hines and Related to purchase the site, he said. AMLI’s plan is “super creative” for the neighborhood, Edelstein added.

Edelstein, who owns the W South Beach, spent about six years assembling the properties. Last year, he paid $6.5 million for the parcels at 97 and 101 Northwest 24th Street. In all, property records show companies tied to TriStar spent nearly $15 million for lots on 24th and 25th streets since 2013.

TriStar also owns the building at 261 Northwest 26th Street in Wynwood where Lebron James’ Unknwn store is located.

Chicago-based AMLI has owned and developed thousands of apartments in South Florida. In Miami, it’s currently building AMLI Midtown Miami, a 719-unit complex at 3000 Northeast Second Avenue.

Edelstein, meanwhile, is shifting his focus to Wynwood’s Fifth Avenue. In 2018, he entered a contract to spend $32 million to buy a large assemblage west of the AMLI assemblage with plans to develop it into a mixed-use project. He closed on the first piece in 2018, spending $18 million for the properties at 2641 and 2661 Northwest Fifth Avenue, and said he plans to close on the second piece in April.

There, Edelstein is planning 350,000 square feet of residential and office development. Nearby, Sterling Bay is currently building 545 Wyn, a 10-story, 325,000-square-foot office building at 545 Northwest 26th Street.

On the West Coast, Edelstein is a landlord to major tech companies like Amazon and Facebook in Seattle, and Apple in Sunnyvale, California.

New EB-5 rules targeting abuse may be eased

Sen. Lindsey Graham and the Hudson Yards development (Credit: Getty Images, iStock)

Sen. Lindsey Graham and the Hudson Yards development (Credit: Getty Images, iStock)

EB-5, the federal visa program that helped fund development projects like the massive Hudson Yards in New York, has been fading recently and on the ropes, a result of fraud and its own popularity. But it still has supporters, and they are now looking to U.S. Sen. Lindsey Graham, Chuck Schumer and other powerful elected officials to help ease newly-passed rules, according to the Wall Street Journal.

The rules took effect in November, and were meant to crackdown on abuse and pull the 30-year-old program into the 21st century.

Sen. Graham of South Carolina and Sen. Schumer of New York are its co-sponsors; its sponsor is Sen. Mike Rounds of South Dakota. The bill would lower the minimum amount that foreign investors have to pour into some projects in order to receive a green card. It would also allow some investors to stay in the U.S. as they wait for their visas, according to the Journal.

EB-5 allows foreign investors the ability to obtain a green card in exchange for investing and creating jobs in the U.S. Developers latched onto the program as a way to obtain cheap financing for ground-up construction, but investor demand has waned due to visa backlogs and fraud and misuse in the program.

Under the new EB-5 regulations, investment requirements rose to $900,000 from $500,000 for a project in a low employment zone, which are known as targeted employment areas. The investment amounts also climbed to $1.8 million from $1 million in all other areas.

The new rules also prohibit developers from what had become a common practice of tacking on a sliver of a targeted employment area to a project that is in a wealthier area in order to qualify for the lower amount.

But opponents of the new rules say that it will discourage investment and ultimately cut down on development. A Florida regional center recently went to federal court to seek in order to halt enforcement, alleging the new rules violate the U.S. Constitution, were not property reviewed for potential fallout and would end up killing his business.

Nicholas Mastroianni II, chief executive of U.S. Immigration Fund — an EB-5 regional center — gave Graham a $5,000 campaign contribution in September and Aaron Grau of the EB-5 trade group Invest in the USA, donated $2,000 to the senator, according to the Journal, citing the Center for Responsive Politics. [WSJ] — Keith Larsen

Trump Org blasts NYC mayor for criminal referral of tax findings

Mayor Bill de Blasio, 40 Wall Street, and President Donald Trump (Credit: Getty Images, 40 Wall St. via the Trump Organization)

Mayor Bill de Blasio, 40 Wall Street, and President Donald Trump (Credit: Getty Images, 40 Wall St. via the Trump Organization)

The Trump Organization blasted the New York City mayor for saying his probe of the company turned up evidence of a possible crime.

Following a news report late last year that President Donald Trump’s development firm reported different income figures to lenders and the government for the same real estate, Mayor Bill de Blasio launched an investigation. The mayor said Friday that some of his administration’s findings had been referred to Manhattan District Attorney Cyrus Vance for possible criminal prosecution.

A spokesperson for the Trump Organization lashed back Monday, saying the mayor is the “last person to be pointing fingers,” given the “rash of investigations” against the mayor’s presidential campaign, which ended in September. (Previous fundraising efforts by de Blasio were also scrutinized by Vance and federal prosecutors, resulting in harsh criticism but no charges.)

“The allegations are unfounded and clearly motivated by politics,” the Trump spokesperson said in a statement to The Real Deal.

The mayor’s office followed up with its own barb.

“President Trump is a con artist and his refusal to release his tax returns says more than enough about what he is trying to hide,” Freddi Goldstein, the mayor’s press secretary, said in a statement.

In October, ProPublica and WNYC reported that the Trump Organization had reported lower income figures at some of its buildings to the Department of Finance, which oversees property taxes, than it did to potential lenders.

The ProPublica-WNYC report cited experts that suggested the practice used at the Trump Organization’s 40 Wall Street could amount to fraud.

On Friday, de Blasio said during an interview with WNYC that “at least one piece of what was found was serious enough to be referred to the D.A.” A person familiar with the probe said it was passed on to Vance in November.

A spokesperson for the district attorney’s office said the office does not confirm investigations, and declined to comment further.

Landlords of all sizes challenge their property assessments in an effort to lower their real estate taxes, including by arguing that they do not produce as much income as the assessment assumes. Reporting robust income to lenders can entice them to provide larger loans to the property owner. In the case of a discrepancy between the two income numbers, prosecutors could evaluate whether there was an attempt to defraud either the government or the lenders.

Silicon Prairie could be the Silicon Valley of the 2020s

Kansas City (Credit: iStock)

Kansas City (Credit: iStock)

Denizens of the Midwest and the South, take heed: tech bros in zip-up hoodies may be at their standing desks, searching for their perfect startup office in your city right now.

Affordability, less competitive markets for talent, and liveability all make metros like Kansas City, Oklahoma City, and St. Louis ripe for tech industry growth, a new study from Zillow suggests. The study measured those and other factors that could appeal to startups and growing tech companies in 42 metro areas around the country.

Traditional tech markets like San Francisco and Seattle, as well as large cities that have experienced rapid growth recently in the sector, including Los Angeles and New York, were at the bottom of the list.

“Rapid housing cost growth in these areas and a saturation of firms competing over limited pools of tech talent may instead push tech companies to shift their gazes elsewhere,” the report said.

By comparison, the cities that landed on the top of the list tend to have a healthy stock of lower-priced homes, growing economies, and less drastic shortages of college-educated workers.

The study also measured how “hot” each city was by comparing the number of locals searching for homes outside that metro area with the number of outsiders searching for homes within it. By that definition, Las Vegas, Jacksonville, and Tampa ranked the “hottest” markets in the country.

Generally, more people are looking to get out of traditional tech hubs than they’re trying to get in — the Bay Area, New York, and Washington, D. C. all have between four and five people looking for homes outside those areas for everyone one person looking for a home in those areas.

Commute times and internet speeds also factored into the ranking. Kansas City, Zillow’s top pick for growth, has some of the best internet infrastructure in the country and relatively short commutes. Raleigh and Salt Lake City also ranked high in those respects. [Zillow]Dennis Lynch