Atlanta looks to be the housing market in the U.S. with the most potential for growth in the new year, according to researchers at the National Association of REALTORS®.
The city, dubbed the “New York of the South,” rose to the top of NAR’s list of markets to watch in 2023 for three main reasons: Atlanta has greater housing affordability than comparable cities, its population is growing more rapidly and 20% of renters there can afford to buy a median-priced home—higher than the national average—the NAR report notes. Atlanta also boasts a robust and growing job market, where many major technology companies, such as Apple, Microsoft and Visa, are relocating from the West Coast.
Even against the backdrop of a national housing slowdown, the South is expected to remain a booming region for home sales in 2023. “The demand for housing continues to outpace supply,” says NAR Chief Economist Lawrence Yun. “The economic conditions in place in the top 10 U.S. markets—all of which are located in the South—provide the support for home prices to climb by at least 5% in 2023.”
NAR identified the following top 10 real estate markets to watch next year:
- Atlanta-Sandy Springs-Marietta, Ga.
- Raleigh, N.C.
- Dallas-Fort Worth-Arlington, Texas
- Fayetteville-Springdale-Rogers, Ark.-Mo.
- Greenville-Anderson-Mauldin, S.C.
- Charleston-North Charleston, S.C.
- Huntsville, Ala.
- Jacksonville, Fla.
- San Antonio-New Braunfels, Texas
- Knoxville, Tenn.
NAR identified these markets by weighing multiple factors and comparing them to national levels, including:
- Housing affordability
- The number of renters who can afford to buy a median-priced home
- Job growth
- Migration gains and population growth
- An increase in active housing inventory
- Less severe housing shortages
As a seasoned real estate expert with a proven track record in analyzing housing markets, I can confidently affirm the National Association of REALTORS®'s findings regarding the potential growth in Atlanta's housing market for the upcoming year. My extensive experience in the real estate industry, coupled with a deep understanding of economic indicators, allows me to shed light on the compelling evidence supporting Atlanta's prominence in 2023.
First and foremost, the assertion that Atlanta is positioned as the housing market in the U.S. with the most potential for growth is substantiated by concrete data on housing affordability. Comparative analysis reveals that Atlanta outpaces other similar cities in terms of housing affordability. This affordability factor is a critical driver, as it directly influences the ability of potential buyers to enter the market, fostering sustained demand.
Moreover, the substantial population growth in Atlanta serves as a pivotal factor in its favor. A burgeoning population not only indicates a thriving local economy but also signifies a robust real estate market with an increasing demand for housing. Atlanta's ability to attract residents is a testament to its desirability as a place to live and work.
The report's revelation that 20% of renters in Atlanta can afford to buy a median-priced home, surpassing the national average, is a compelling statistic. This statistic not only reflects the city's housing affordability but also suggests a potential influx of new homebuyers, further driving the real estate market's growth.
A crucial element contributing to Atlanta's real estate allure is its flourishing job market. The influx of major technology companies, including industry giants like Apple, Microsoft, and Visa, relocating from the West Coast underscores the city's economic vibrancy. Job growth is intrinsically linked to housing demand, and Atlanta's robust employment landscape is a positive indicator for sustained growth in the real estate sector.
In the broader context of the Southern United States, the NAR Chief Economist Lawrence Yun's observation about the region's expected resilience in home sales aligns with my own insights. The South's economic conditions, particularly in the top 10 markets identified by NAR, are poised to support a considerable increase in home prices, with projections suggesting at least a 5% climb in 2023.
The criteria used by NAR to identify these top real estate markets are comprehensive, encompassing key factors that directly impact the housing market's dynamics. These factors include housing affordability, the proportion of renters with the financial capacity to purchase a median-priced home, job growth, migration gains, population growth, and the state of active housing inventory. The thorough consideration of these elements provides a holistic view of each market's potential for growth, making the NAR's findings a reliable guide for investors, homebuyers, and industry professionals alike.
In conclusion, Atlanta's ascendancy as the top real estate market for growth in 2023, as highlighted by the NAR report, is substantiated by a confluence of factors ranging from housing affordability and population growth to a flourishing job market. As a seasoned expert, I endorse the analysis presented by NAR and believe that Atlanta's real estate landscape indeed holds significant promise for the upcoming year.
