U.S. cities where housing markets are growing fastest (2024)

FAQs

Where is the fastest growing housing market in the US? ›

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 ...

Key Findings: The hottest housing markets include those markets in North Carolina, Colorado and Texas that were also popular during the pandemic, including Raleigh and Durham, Denver and Austin.

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.

Seattle, San Jose, Austin and Phoenix are among the metros with the fastest-slowing housing markets as high mortgage rates, tech turmoil and the lack of homes for sale deter buyers.

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.

Markets in Georgia, Tennessee, Florida and North Carolina are the strongest for sellers. Home values are decreasing across much of the U.S., but there has been little change in the Southeast. Other factors important to homeowners are appreciation, job growth, local population growth and unemployment rates.

What state has the best housing market 2023? ›

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 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 ...

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.

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

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

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. While considered the hottest market, activity may be less than what buyers and sellers saw in Tampa last year, says Prakash.

Some of the most popular pandemic boomtowns such as Phoenix and Seattle, plus perennially popular West Coast cities like San Jose and San Francisco, posted home price declines of more than 10% from their 2022 peaks, according to December data from mortgage technology and data provider Black Knight Inc.

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

Colonial. Colonial-style homes have the highest resale factor when all other elements are equal. These two-story homes that often have a boxlike appearance are popular because of the amount of functional living space that they often have.

What state makes the most money in real estate? ›

Story at a glance

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

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

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The largest decrease in home prices will occur in Austin, where values are projected to slump 19% by late 2024 compared to late 2022, according to the note. Prices are expected to sink in Phoenix by 16%, San Francisco by 15% and Seattle by 12%.

At the end of 2022, the Florida Business Observer reported that home sales had fallen by nearly 40% in the publication's home state. At a glance, that puts Florida on par with the rapidly cooling real estate market in the country as a whole.

The Lowest Home Prices Are Typically in January

Median sales prices are more affordable between September and February than in other months of the year. For example, January 2022 had a median price of $377,454, which peaked at $432,812 in May 2022.

Seattle has one of the nation's fastest-cooling housing markets, with median sales prices down nearly 11% since April, according to the latest RE/MAX National Housing Report. The details: Seattle's active housing inventory in October was up 130% year-over-year, the largest increase recorded so far in 2022.

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.

Which 3 US 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.

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.

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.

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.

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.

"Let the Land rejoice, for you have bought Louisiana for a Song." The Louisiana Purchase has been described as the greatest real estate deal in history. In 1803 the United States paid France $15 million for the Louisiana Territory--828,000 square miles of land west of the Mississippi River.

Texas places four major metros in the top 15, while three New York metros are represented—including Rochester, which has the nation's highest property taxes at a 2.4% effective rate. The data used in this analysis is from the U.S. Census Bureau.

New York has always been expensive, but in 2022 it became the joint-most expensive city in the world—alongside Singapore—according to a survey by EIU, our sister company. The story on America's west coast is similar: Los Angeles shares the fourth spot with Hong Kong.

Most expensive ZIP codes in the U.S.

The most expensive ZIP code in terms of home values for all homes in the U.S. is 94027, in Atherton, California, with a 12-month average value of more than $7.7 million.

What is the best date to close on a house? ›

If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).

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.

"Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming. "And even if they do go down, it won't be back to the rates of yesteryear. 6% mortgage rates used to be normal, and that's more reasonable to expect too."

In my opinion, real estate is one intelligent option to consider in 2023, as it often has excellent returns, tax advantages and provides diversification even in the face of a challenging economic climate. Real estate also has the potential to compound your investment.

Mortgage Bankers Association: The trade group's latest forecast has U.S. home prices, as measured by the FHFA US House Price Index, falling 0.6% in 2023 and another 1.4% dip in 2024. It then expects national home prices to rise 2.1% in 2025. (Forecast updated on April 17, 2023).

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.

Farmington, N.M., has the fastest-rising housing costs in the United States, according to a new report from the National Association of Realtors (NAR) scanning home prices across the nation.

Studies have shown that for the past 40 years, housing supply has not kept pace with demand, resulting in a housing shortage ranging between 2 million and 6 million homes. Yet across America, a combination of recalcitrant homeowners and outdated zoning laws routinely block attempts to build more housing.

Seattle has one of the nation's fastest-cooling housing markets, with median sales prices down nearly 11% since April, according to the latest RE/MAX National Housing Report. The details: Seattle's active housing inventory in October was up 130% year-over-year, the largest increase recorded so far in 2022.

Where are home prices most inflated? ›

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.

At a state level, Hawaii, South Carolina and North Carolina were the most overvalued housing markets, Fitch said.