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[video] Trulia, Zillow Offer, Good News, Bad News for 2014 Housing

Stocks in this article: XHB ^DJI



Finally, Trulia predicts that rental demand will shift from single-family rentals to urban rentals. With investor activity slowing, coupled with the fact that fewer homes are going into foreclosure, the supply of single-family rentals should cool. Meanwhile, young adults who move out of their parents homes to form new households are more likely to choose urban, apartment-style rentals and multi-family construction is much higher.

"The shift in rental activity from suburban single-family to urban apartments would be yet another sign of housing recovery," noted Kolko. That would mean that household formation, which is still well below its pre-bubble normal, is recovering. Household formation is one of the biggest underlying drivers of housing demand.

Trulia also released its top 10 markets to watch, with Bethesda- Rockville- Frederick, MD, Charlotte NC-SC and Denver, CO topping the list.

Read what Zillow has to say about the 2014 market for housing.

-- Written by Shanthi Bharatwaj in New York.



Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
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