Seattle area rents expected to go up 3.5 percent this year

Seattle will be the third-hottest housing market in the country in 2018, based on analysis by Zillow.

Seattle has been named by Zillow as the third-hottest housing market in the United States for 2018.

San Jose, Calif., and Raleigh, N.C., took the top two spots.

Zillow determined its list based on quickly-rising home values and rental prices, low unemployment rates, steady income growth and strong job opportunities with lots of people moving to the area.

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Of all the cities on the list, Seattle has the highest forecasted rental appreciation, with rents in the metro expected to increase another 3.5 percent over the next 12 months.

Five Seattle neighborhoods are expected to see the fastest rental appreciation in 2018.

- Totem Lake – 9.1%

- Belltown – 8.8%

- Houghton – 8.4%

- Riverview – 8.2%

- Kingsgate – 8.1%

Zillow senior economist Aaron Terrazas suggests that the high cost of living in Seattle is "is offset to a large degree by well-paying tech jobs."