This Year’s Most Desirable Housing Markets

According to analysis by Zillow, Buffalo, NY will be the hottest housing market in 2024. The report finds affordability is the key issue in the current real estate market. As a result, lower-cost homes in the Great Lakes, Midwest, and Southern regions are making those areas more desirable for home buyers.

“Housing markets are healthiest where affordable home prices and strong employment are giving young hopefuls a real shot at buying and starting to build equity,” said Anushna Prakash, data scientist for Zillow Economic Research.

This Zillow report on the hottest markets considers a few factors. These include: the forecast for local home value growth; the speed at which home sellers are entering contracts with buyers; job growth per new home permitted; and job growth in owner-occupied households. These factors help explain Buffalo leading the list, as it boasts the highest number of new jobs per new home permitted, which is an indication of expected demand.

In Cincinnati, deemed the second hottest market, housing inventory is moving quite quickly. Columbus, which is three on the list, is home to the fastest expected rise in owner-occupied households. This factor indicates family formation, which results in population growth.

Housing costs hit record highs in 2023. Yet, competition for homes remains high in affordable areas such as the Great Lakes and Midwest markets.

In Buffalo, the typical home value is reported at approximately $248,000, with typical monthly rent reported at $1,250. Cincinnati and Indianapolis, numbers two and four on the list respectively, are almost identical in housing costs.  Home values in those areas are approximately $270,000, and monthly rents are typically in the $1,900 range. Columbus is a bit higher, with housing values typically $300,000 and rents close to $2,200 per month. Finally, Providence, which is number five on the list, jumps to $455,000 for home value and almost $3,300 for monthly rent.

Despite the rise over the past few years of both home prices and monthly rents, this report indicates affordability could improve in all markets across the country if mortgage rates ease and wage gains continue.