Homes are selling faster than the country's average in the relatively affordable U.S. real estate market — in some cases, as fast as 11 days.
Homebuyers looking for affordable housing and water facilities would do well to look to the Upper Midwest and Great Lakes regions, as well as the South, where relatively low prices, job growth, and stiff competition have put more metropolises on Zillow's list of the hottest real estate markets for 2024.
"Reasonable housing prices and strong employment in the U.S. provide a real opportunity for promising young people to buy a home and start accumulating assets," said Anushna Prakash, data scientist at Zillow
In 2022, the hottest real estate markets were mostly distributed in the Sun Belt, and in 2023 the South was the center of the action, and this year marks a shift to the East and North, including three cities in Ohio.
What makes these U.S. real estate markets hot?
To list the hottest real estate markets, Zillow analyzed the 50 largest metro areas in the U.S. as follows:
1. Expected U.S. home price appreciation from December 2023 to November 2024.
2. The expected change in the appreciation of U.S. property values starting in 2023.
3. New jobs allowed for each new housing unit.
4. An estimate of the number of new families owning their own homes.
5. The speed of real estate in the United States.
New jobs often attract new residents, while competition increases, and U.S. home prices** unless new construction can keep up with new demand. The increase in the number of owner-occupied households is a sign of family formation and population growth.
"Housing costs in the U.S. will reach record highs in 2023, and while affordability may improve in 2024, it is expected to remain the biggest challenge for buyers in 2024," Anushna Prakash said.
While cautiously optimistic that the U.S. housing market will return to stability in 2024," she said. "We shouldn't see the **drastic** caused by the early days of the pandemic or the rapid rise in mortgage rates in recent years. ”
In the moderate Great Lakes and Midwest markets, competition to buy a home has intensified, with sellers finding buyers faster than the national average, and here are a few of the top 10 most popular cities.
Top 10 Most Popular Cities in the U.S. Real Estate Market in 2024: 1Buffalo, NY.
After years of population decline, the city has been rejuvenated both in terms of population and urban facilities. Known for its epic blizzards and proximity to Niagara Falls, one of the world's greatest natural wonders, the city has seen a 5% year-over-year increase in home values. A typical home is now worth $248,445 and can be sold in just two weeks on the market.
2.Cincinnati, Ohio.
Located in a river valley surrounded by mountains, Cincy is famous for its beer. The value of homes in 2023 reached $270,826, an increase of 5% from the previous year. But they are expected to remain unchanged until 2024, with homes sold in about 11 days.
3.Columbus, Ohio.
Owner-occupied homes in Ohio's capital are expected to grow by 114%, the largest owner-occupied home in the United States, and a sign of family formation and population growth. Home values are up to $301,138, up 5% year-over-year, and home values are expected to remain unchanged in 2024.
4.Indianapolis.
Indianapolis is a seaside city located in the heart of Husier State along the White River, and is famous for its racing cars. A typical home** is $268,125, a 2% increase from the previous year. New** sales are available within 19 days.
5.Providence, Rhode Island.
Home to Brown University and the Rhode Island School of Design, this seaside city has a feel that is both quaint and sophisticated. In 2023, homes are worth $455,609,** 7%. Home prices are expected to remain unchanged this year, but demand remains strong and homes are on sale for 14 days.
6.Atlanta, Georgia.
This legendary city is rich in history, vibrant street art, and world-famous hip-hop culture. Atlanta home values increased 2% to $386,122 in 2023, and homes were sold in 26 days.
7.Charlotte, North Carolina.
Charlotte is known as Zillow's hottest real estate market in 2023, with typical home values climbing 1% to $371,844 in 2023, with homes sold in about 16 days.
8.Cleveland, Ohio.
Known for attractions like the Rock and Roll Hall of Fame and the Theater District after New York City, Cleveland has a 2023 home price **6% and a typical home value of $215,597. Values are expected to remain flat this year.
9.Orlando, Florida.
Tourism and hospitality are the lifeblood of this city in the heart of Florida, home to Disney World and attracting tens of millions of visitors each year. Homes here go from listing to being for sale in about 23 days. Although home values grew year-over-year in 2023, pushing typical home values to $388,048, home prices are expected to decline by about 1% in 2024.
10.Tampa, Florida.
After being at the top two years ago, it slipped to No. 10 on the list. A diverse economy and an average of 244 days of sunshine a year should continue to attract newcomers this year. A typical home is worth $375,338, about the same as the same period last year. The**Tampa home values are up 2% in 2024.