3 US states have the most vulnerable housing markets, by far (2024)

FAQs

Which 3 states have the most vulnerable housing markets by far? ›

New Jersey, Illinois and California lead the nation with markets where properties are vulnerable amid a housing downturn and possible upcoming recession, according to a new report from real estate analytics company Attom.

The report shows that inland California, Illinois, New Jersey, and Delaware continued to have some of the highest concentrations of the most-at-risk markets in the country, with the biggest clusters in the New York City and Chicago metropolitan areas. Southern and midwestern states remained less exposed.

The combination of record-fast home value growth to start the year and a record number of newly built homes increased the total market value of residential real estate in the U.S. in 2022, despite price drops to end the year. California remains untouchable on its perch as the most valuable housing market in the country ...

At the state level, Oklahoma, Iowa, and Alaska have the most stable housing markets, as measured by the probability that a buyer purchasing a home at any point between 2000 and present would have experienced a greater-than-5% price drop following the purchase.

1. West Virginia. With a Zillow Home Value Index of $146,578, West Virginia is the most affordable state to buy a house in the US. Despite its low home prices, the state boasts natural beauty and outdoor recreation opportunities, making it an attractive option for homebuyers on a budget.

The combination of record-fast home value growth to start the year and a record number of newly built homes increased the total market value of residential real estate in the U.S. in 2022, despite price drops to end the year. California remains untouchable on its perch as the most valuable housing market in the country ...

Where is the hottest housing market in the US? ›

Mississippi has the largest HUD households with an average 2.4 residents per housing unit. New Hampshire has the smallest households with an average 1.7 residents. Utah has the smallest number of HUD residents per capita at 1.12%.

California's chronic shortage of housing manifests itself in sky-high housing costs, the nation's worst poverty and its highest level of homelessness.

In the U.S., Miami was the city with the highest risk of a housing bubble and reported the highest house prices and rental growth of all the cities in the study. For the rest of the country, the Magic City was followed by Los Angeles, San Francisco, Boston, and New York.

According to a report from the National Multifamily Housing Council, the U.S. will be 4.3 million apartments short of meeting the demand for housing by 2035.

The cheapest states to live in are Mississippi, Oklahoma, Kansas, Alabama, Georgia, Missouri, Iowa, Indiana, West Virginia, and Tennessee. Mississippi is the cheapest state to live in in the US, with a cost of living index of 85. The second cheapest state to live in is Oklahoma, with a cost of living index of 85.8.

Where have home prices dropped the most in the US? ›

Leading the nation with the largest drop from the 2022 peak is San Francisco, where home prices have fallen nearly 17%.

Texas replaced California in 2023 as the strongest housing market by state. With an existing home inventory of 83,222, the available houses for sale have more than doubled since last year. It has seen a drop of about 6% in new construction and is now at 248,648 since 2022.

The housing market's crash during the Great Recession led the industry to pull back on construction for many years, and materials and labor shortages during the height of the pandemic fueled another slowdown.

The imbalance between supply and demand; resulted from of strong economic growth creating hundreds of thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.

The city of Toronto has the highest risk of a housing bubble, according to a recent survey released by investment bank UBS. Other cities at a high risk include Frankfurt, Hong Kong, Munich, Zurich and Vancouver.

All the cities on this graphic are classified as severely unaffordable⁠—and, for the 12th year in a row, Hong Kong takes the top spot as the world's most unaffordable housing market, with a score of 23.2.

San Jose, California; San Diego, California; Austin, Texas; and Phoenix, Arizona, will likely see noticeable increases before drastic decreases of more than 25%.

In four cities in particular, supply levels are above pre-pandemic levels, the bank said, which will result in greater price declines than the national average. They include: Phoenix, Arizona; San Francisco, California; Seattle, Washington; and Austin, Texas.

By the fourth quarter of 2024, the firm expects home prices to fall 19% in Austin, 16% in Phoenix, 15% in San Francisco, and 12% in Seattle.

Homebuyer.com data analysis indicates that, for first-time home buyers, June 2023 is a good time to buy a house relative to later in the year. This article provides an unbiased look at current mortgage rates, housing market conditions, and market sentiment.

What is the hottest real estate in the USA? ›

That's the takeaway from a new Bankrate analysis of nearly 200 housing markets around the country. The personal finance website ranked the top most attractive and active housing markets and found that Gainesville, Georgia, was No. 1.

Charlotte, a 211-mile drive from the sands of the Atlantic Ocean, nabbed the top spot on our list of the hottest housing markets for 2023 due to its forecasted annual home price growth.

The Bay Area has the worst performing housing market in the nation, according to a new report.

Home prices in some US cities are finally cooling, with Seattle's housing market slowing faster than any other in the country. The 10 fastest-cooling markets are almost entirely in the West, with Seattle, Las Vegas, and the three California cities of San Jose, San Diego and Sacramento leading the way.

Charlotte is expected to be the hottest housing market in 2023, followed by Cleveland, Pittsburgh, Dallas, and Nashville. Zillow's list is based on analyses of forecasted home value growth, recent housing market activity, and expected changes in the labor market, home construction, and homeowner households.

Mississippi

Mississippi, “The Magnolia State,” is the birthplace of Elvis Presley and the delta blues. It's also the cheapest state to buy a house in 2023. As of 2020, the total state population was 2,961,279, making it the 32nd most populated state. The most populated city is Jackson, with 153,701 residents.

Regarding affordability, the report indicates that Connecticut, Massachusetts, and New Jersey are the most affordable states with Arizona, Nevada, and Florida being the least affordable.

John Malone is the largest private landowner in the United States. Malone made his fortune as a media tycoon, building the company Tele-Communications, Inc, or TCI, and acting as its CEO before selling it to AT&T for $50 billion in 1999.

California leads the nation for fastest home sales, with the average property snapped up in just 52 days. Compare that to Vermont, the slowest of all 50 states, where it takes nearly half a year — 161 days on average — just to lock down a buyer.

Where is the hottest real estate market in the world? ›

Back in 2020, Hong Kong was crowned the “world's most expensive real-estate market” by CBRE Global Living, calculating the average property prices to be in the range of $1.25 million.

After rising sharply for years, home prices decreased year-over-year in February 2023 for the first time in more than a decade — and continued to drop in March and April. The decrease is relatively modest, though: While the heated market has cooled down, it's not likely to experience a sharp drop.

The most overvalued markets to rent a home are mostly found in California and Florida. You'll pay the most to buy a median-price home versus renting a home in California, as well as MSAs in Oregon, Washington, Colorado, Idaho and Utah.

The most worrying one is that 3.2 million tenants in California are rent burdened, which means people are spending 30 percent or more of their income on housing costs. No other state in the nation has more rent-burdened residents. In addition, the O.C.

Hawaii and California are the LEAST affordable places to live in the U.S as incomes fail to keep up with soaring property prices.

About six-in-ten U.S. adults living in urban areas (63%) say that the availability of affordable housing in their community is a major problem, compared with 46% of suburban residents and 40% of those living in rural areas.

"While many parts of the U.S. are experiencing price declines, home values have held steady in the Southeast." Bankrate said Gainesville ranked No. 1 because homes in the area have appreciated 40% in one year, higher than any other location in the analysis.

Where are the most overvalued housing markets in the country? ›

The most overvalued markets to purchase a home tend to be in California, but also include Seattle, Washington, and “Zoom towns” such as Boise, Idaho, and Greeley, Colorado. The most overvalued markets to rent a home are mostly found in California and Florida.

Story at a glance

California currently has the largest deficit of homes at 980,000.

The housing crisis in California affects residents of all races and ethnicities, but the lack of affordable housing is particularly acute for African Americans and Latinos.

There is a shortage of 7.3 million affordable and available rental homes for renters with extremely low incomes in the US, up 8 percent from 6.8 million in 2019. The lack of housing options for renters with extremely low incomes are driving the overall affordable housing shortage across the country.

The imbalance between supply and demand; resulted from of strong economic growth creating hundreds of thousands of new jobs (which increases demand for housing) and the insufficient construction of new housing units to provide enough supply to meet the demand.

In the U.S., Miami was the city with the highest risk of a housing bubble and reported the highest house prices and rental growth of all the cities in the study. For the rest of the country, the Magic City was followed by Los Angeles, San Francisco, Boston, and New York.