Most Expensive Housing Markets in the US 2023 (2024)

FAQs

Most Expensive Housing Markets in the US 2023? ›

As per the ECA International's Cost of Living Rankings 2023, New York City is the world's most expensive city to live in as an expat. The rising cost of rented properties and inflation are the primary factors behind New York City topping ECA International's latest Cost of Living Rankings.

As per the ECA International's Cost of Living Rankings 2023, New York City is the world's most expensive city to live in as an expat. The rising cost of rented properties and inflation are the primary factors behind New York City topping ECA International's latest Cost of Living Rankings.

According to the CoreLogic HPI Forecast, home prices are projected to continue their upward trajectory. The forecast indicates an expected month-over-month increase of 0.8% from March 2023 to April 2023 and a year-over-year increase of 4.6% from March 2023 to March 2024.

The first reason why June 2023 is an excellent time to buy a house is that mortgage rates are falling back into the 6s and are likely to hold. According to Freddie Mac, 30-year fixed-rate mortgage rates averaged 6.57 percent to open the month, and dropped 0.375 percentage points when Congress reached a budget deal.

1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

One of the most popular states to move to in 2023 is Texas, and for good reason. This state boasts an impressive job market since it is home to many tech companies, startups, and artistic hubs.

Soaring inflation and rising accommodation costs were cited as reasons for New York topping ECA International's Cost of Living Rankings for 2023, while Geneva and London remained in third and fourth places. Lower Manhattan in New York.

Key points. Inflation seems to be slowing, and some things could start to get cheaper in 2023. The cost of real estate, rental, cars, and gas could fall, at least a little. Don't get too excited about potential price drops, as there's still a lot of uncertainty about the economy.

Will 2024 be a good time to buy a house? ›

With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.

It's also worth noting that while foreclosure rates are up year-over-year, experts do not expect to see a wave of foreclosures in 2023, even where home values are depreciating, as many homeowners have substantial equity due to progressive home price appreciation in recent years.

Fannie Mae expects U.S. home prices to fall -1.2% between Q4 2022 and Q4 2023, and then another -2.2% between Q4 2023 and Q4 2024.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

Chief Economist at First American Financial Corp, Mark Fleming, says an interest rate drop may not happen for several months. "Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming.

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

Mississippi is the state with the lowest cost of living in the US, with a cost of living index of 85. This means that the cost of living in Mississippi is 15% lower than the national average. The state has a low cost of housing, groceries, and utilities.

The three cheapest states to move to in terms of housing costs are: West Virginia, with an average price of $123,000; Mississippi, with an average price of $125,000; and Arkansas, with an average house price of 133,600. You can view the 10 cheapest states to move to below.

In its report, Niche also ranked the cheapest places to live in the U.S. At the top of the list this year is Brownsville, Texas. Brownsville has been steadily rising in Niche's Lowest Cost of Living ranking over the past few years, placing number six in 2021, number three in 2022 and finally, number one in 2023.

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming. The full list is below.

Which US state has best quality of life? ›

“We realized no one had done a comprehensive quality-of-life comparison between states; other studies made comparisons across countries only.” Massachusetts and Minnesota were the two states with the highest living standards in the U.S., according to the study.

The states that attracted the most new residents in 2022 are Florida, Texas, North Carolina and South Carolina, followed by other states in the South and West.

1. Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.

Georgetown, Texas: The Fastest-Growing City in the Nation

With an impressive growth rate, Georgetown leads all cities and towns with a population of at least 50,000.

According to the Human Development Index, some countries provide a better quality of life than others. The Human Development Index (HDI) is calculated based on three main factors: life expectancy, education, and per capita income. In 2021, Switzerland was ranked first in the HDI, followed closely by Norway and Iceland.

Food prices are projected to rise in 2023, albeit at a slower pace than they did in 2022, according to the USDA.

While it's widely expected that the inflation rate will continue to decline throughout 2023, it's not yet clear when it might drop to the Federal Reserve's target rate of 2%, if at all.

What will 2023 look like financially? ›

In 2023, economic activity is projected to stagnate, with rising unemployment and falling inflation. Interest rates are projected to remain high initially and then gradually decrease in the next few years as inflation continues to slow.

“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

Key Takeaways. The best age to buy is when you can comfortably afford the payments, tackle any unexpected repairs, and live in the home long enough to cover the costs of buying and selling a home. Legally, you must be at least 18 in most states to buy a home.

Paying off your mortgage early can save you a lot of money in the long run. Even a small extra monthly payment can allow you to own your home sooner. Make sure you have an emergency fund before you put your money toward your loan.

What happens to my mortgage if the housing market crashes? A housing market crash won't affect your existing fixed-rate mortgage. However, if the value of your home drops below your purchase price, then you'll be making payments that are greater than the worth of your property.

A downturn in general economic activity leads to less disposable income, job losses, and fewer job openings, which decreases the demand for housing. A recession is particularly dangerous. Demand is exhausted, bringing supply and demand into equilibrium and slowing the rapid pace of home price appreciation.

However, believe it or not, home prices usually tend to drop in a recession. But they don't always decline in every downturn. Home prices dropped four out of five times in the last five recessions. They usually fall at an average of 5% each year the economy remains in a recession.

Mortgage Interest Rate predictions for September 2024. Maximum interest rate 5.76%, minimum 5.42%. The average for the month 5.61%. The 30-Year Mortgage Rate forecast at the end of the month 5.59%.

Overall, the Florida housing market is likely to remain strong in 2023, with continued demand for homes and steady price growth. However, the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers.

Should you flip a house in 2023? ›

Is House Flipping Profitable in 2023? Yes! If you get the basics right, flipping homes in California is easier in 2023 than flipping homes in 2021's competitive market. You Make Money When You Buy Your Flip: Stick to the home flipper's 70% rule.

If you're looking for a long-term investment, real estate may be the better option. There are no guarantees, but real estate tends to appreciate in value over time. If you're looking for a more passive investment, stocks may be the way to go.

Economic factors, such as inflation, have a direct impact on the real estate market. As with other goods and services, real estate prices may rise alongside inflation. This is due to the fact that real estate is commonly considered a safe and stable investment that can be used to combat the effects of inflation.

Economists have long expected the Fed would likely stop raising interest rates at some point in 2023, but “where” rates peak — a level known as the “terminal” rate — is actually more important than “when.”

“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).

The best time to buy a car is usually around the end of the year since salespeople will be trying to meet their quotas and may offer steep discounts. However, you should also consider holidays — like Black Friday — and the beginning of the week.

If you're shopping for a used car, the early months of the year — January and February — are a good time to ship. You may see more vehicles on the market then as people sell their old vehicles after buying new ones over the holidays. That increased supply can lower prices, making it a good time to buy.

Top 10 Most Expensive States to Buy a House in the US

The top 10 most expensive states for home values, according to the Zillow Home Value Index, include Hawaii, California, the District of Columbia, Washington, Massachusetts, Colorado, Utah, Oregon, New Jersey, and Idaho.

What is the best state in 2023? ›

The latest edition of the Best States rankings project finds a new No. 1 and a strong showing from the West and Midwest in the top 10. Utah has taken the No.

Hawaii. Hawaii is truly a paradise, but it is also the most expensive state in America to live in. The cost of living in Hawaii overall is 86% higher than the national average, and the cost of housing in Hawaii is a jaw-dropping 207% above the national average.

Average home price in the United States: $436,800

The median home sales price is $436,800 as of the first quarter of 2023. That's a 32% increase from 2020, when the median was $329,000.

According to worldpopulationreview.com, Hawaii is the most expensive state to live in, with its housing costing three times the national average. New York and California rank as the second and third most expensive states in which to live, respectively.

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

St Louis, Missouri is the top-rated city in the U.S. for people looking to start over. New York City is the most difficult city to move to for a fresh start. Hartford, Connecticut has the best social scene score. Birmingham, Alabama has the best cost of living score compared to other cities we studied.

1. California

California, the nation's most populous state, has the largest state GDP of $3,599,103,000,000. California's median household income is $78,672, the seventh-highest in the U.S.

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.

What US city has the most expensive housing? ›

The most expensive city in the U.S. in terms of housing costs is San Jose, California. It combined the highest monthly housing costs in our study with the second-highest home values, but San Francisco wasn't far behind.

The Average US Home Could be Worth $382,000 by 2030

House prices in the US have risen by 48.55% in the last ten years (from $173k to $257k) and if they continue to grow at this rate for another decade, the average US home will be worth $382k by 2030. But across such a vast country, the picture inevitably varies.