The Best and Worst Housing Markets of 2024
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
It’s no secret that the U.S. housing market has been tumultuous for the past few years. Low inventory and high sales prices have made it difficult and stressful for prospective homebuyers to find a home that is reasonable for their family and budget. I went through the process recently and am beyond glad to be on the other side.
As a first-time homebuyer, I was often told to “wait” and “keep renting,” but ultimately, I decided it was the right time to buy a house. Sadly, the rental market has also been seeing a price rise. So, if you’re ready to tip your toe into the housing market, it’s time to look at the best and worst markets around the U.S.
In this article
Overview of the best housing markets in the U.S.
Housing Market | Best for |
Buffalo, NY | Stable home prices |
Cincinnati, OH | Fast-selling homes |
Columbus, OH | Strong economic growth |
Indianapolis, IN | Affordability |
Providence, RI | Steady housing demand |
Atlanta, GA | Housing options |
Charlotte, NC | Strategic location |
Cleveland, OH | Revitalization efforts |
Orlando, FL | Tourism sector |
Tampa, FL | Economic growth |
Use Quicken Loans to Check Top Lender Rates
- Powerful home equity solutions
- Get transparent rates from providers
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience
The best housing markets in the U.S.
As we enter 2024, the real estate market shows signs of change. According to Zillow, after years marked by low inventory, high prices, and elevated mortgage rates, a cooling trend is expected.
This year, homebuyers are focusing on markets less affected by these challenges. Zillow's list of top housing markets, mainly in the Midwest, Great Lakes, and South, with Providence, Rhode Island as the East Coast exception, highlights cities with strong job markets and stable home value growth.
Buffalo, New York, leads this list, recognized for its steady home prices and job growth, followed by Cincinnati, noted for its rapid home sales. This article will explore these emerging hotspots and the factors making them attractive in the current market.
Buffalo, New York
Buffalo, known for its rich history and vibrant culture, is experiencing a surge in its housing market. The city's affordability and growing job sector, particularly in healthcare and education, make it an attractive option for homebuyers. Its scenic beauty, including proximity to Niagara Falls and a range of outdoor activities, adds to its appeal.
Buffalo's real estate market is characterized by stable home prices, a contrast to the volatility seen in many other regions. This stability and a relatively low cost of living attract buyers looking for value and a slower-paced lifestyle. The city's efforts in revitalizing downtown areas have also spurred interest.
Buffalo's housing market benefits from its balanced approach to new home construction, which keeps inventory levels in check without overwhelming the market. This careful management helps maintain affordability and prevents overheating in more aggressive markets.
Median sale price in Buffalo: $226,708
Cincinnati, Ohio
Cincinnati blends urban and suburban lifestyles, offering diverse neighborhoods that cater to various preferences. The city is known for its strong sense of community, historic architecture, and a burgeoning arts scene. Its economic foundation in industries like finance, manufacturing, and health services makes it a robust job market.
The city's real estate market is particularly dynamic, with homes selling rapidly, often within five to six days in 2023. This brisk pace indicates a high demand for housing, driven by Cincinnati's quality of life and economic opportunities. Reasonable home prices also support the market compared to other major cities.
Cincinnati's attractiveness is further enhanced by its educational institutions and family-friendly amenities, including parks and cultural attractions. The blend of affordable housing, economic stability, and quality of life make it a top choice for homebuyers in 2024.
Median sale price in Cincinnati: $249,981
Columbus, Ohio
Columbus, the state capital of Ohio, is renowned for its innovative spirit and economic vitality. The city is a hub for education, with Ohio State University at its core and a growing technology sector. Its diverse population and thriving cultural scene make it an exciting place to live.
The housing market in Columbus is buoyed by its economic growth, particularly in the tech and education sectors, attracting professionals and families alike. The city's real estate is diverse, offering everything from urban apartments to suburban homes, catering to various preferences and budgets.
Columbus's strategic location, quality of life, and focus on sustainable development contribute to its real estate appeal. The city's investment in public infrastructure, green spaces, and community amenities further solidifies its position as a desirable housing market.
Median sale price in Columbus: $274,842
Indianapolis, Indiana
Indianapolis, famous for the Indy 500, offers a unique mix of sports culture, vibrant arts, and a burgeoning food scene. The city's affordable cost of living and a growing job market, especially in sectors like technology and healthcare, make it an attractive destination for homebuyers.
Indianapolis's housing market is characterized by its affordability and range of options, from downtown condos to suburban homes. The city's commitment to community development and public projects, like expanding greenways and parks, enhances its livability.
Indianapolis's central location in the Midwest and robust transportation network make it accessible and convenient to live. The city's focus on quality of life, economic opportunity, and affordable housing options contribute to its booming housing market.
Median sale price in Indianapolis: $236,254
Providence, Rhode Island
Providence combines a small town's charm with a larger city's amenities. Known for its rich history, prestigious educational institutions like Brown University, and a thriving arts scene, Providence attracts a diverse population. Its coastal location offers unique beauty and recreational opportunities.
The real estate market in Providence is driven by its strong academic and cultural presence, which sustains a steady demand for housing. The city's architectural diversity, from historic homes to modern lofts, appeals to various tastes and budgets.
Providence's economic landscape stabilizes its housing market, including the healthcare and education sectors. The city's focus on revitalization and development, particularly in downtown and waterfront areas, continues to attract homebuyers looking for a blend of history, culture, and growth.
Median sale price in Providence: $425,818
Atlanta, Georgia
Atlanta, named Money's Best Place to Live for 2022-2023, is a bustling metropolis known for its southern charm, diverse population, and strong economic growth. The city's thriving job market, particularly in sectors like technology, media, and healthcare, attracts professionals.
The housing market in Atlanta is buoyed by its status as a cultural and economic hub. The city offers a variety of housing options, from high-rise apartments to historic homes catering to different lifestyles. Atlanta's investment in public transportation and urban development adds to its appeal.
Atlanta's rich cultural scene, including music, arts, dining, green spaces, and mild climate, contribute to its quality of life. These factors and a relatively affordable cost of living make Atlanta an attractive option for a diverse range of homebuyers.
Median sale price in Atlanta: $410,089
Charlotte, North Carolina
Charlotte is known for its vibrant banking sector, which makes it the second-largest banking center in the United States. The city's steady economic growth, particularly in the finance, technology, and energy sectors, attracts professionals from various fields. Charlotte's mix of urban and suburban lifestyles appeals to a wide demographic.
The housing market in Charlotte benefits from the city's economic stability and growth. With a range of housing options, from uptown condos to suburban residences, the city caters to diverse housing needs. Charlotte's focus on community development, including parks and cultural venues, adds to its livability.
Charlotte's strategic location in the Southeast and its modern infrastructure and commitment to growth make it a desirable location for homebuyers. The city's blend of economic opportunity, quality of life, and affordable housing options drive its booming real estate market.
Median sale price in Charlotte: $419,900
Cleveland, Ohio
Cleveland, situated on the shores of Lake Erie, is known for its rich cultural heritage, including music and arts. The city has a strong healthcare and education sector, with institutions like the Cleveland Clinic enhancing its reputation. Cleveland's affordable cost of living and diverse neighborhoods make it attractive to a wide range of homebuyers.
The real estate market in Cleveland is marked by its affordability and variety of housing options. The city's ongoing efforts to revitalize neighborhoods and invest in public amenities, like parks and cultural institutions, boost its appeal as a living place.
Cleveland's housing market benefits from a balanced approach to development, maintaining affordability while fostering growth. The city's commitment to sustainability and community-focused projects contribute to its attractiveness as a thriving housing market.
Median sale price in Cleveland: $122,000
Orlando, Florida
Orlando, famous for its theme parks and tourism industry, is more than a vacation destination. The city's growing tech and healthcare sectors, with a vibrant arts scene and diverse population, make it a dynamic place to live. Orlando's warm climate and outdoor recreational opportunities add to its appeal.
The housing market in Orlando is driven by its strong tourism sector and diversified economy, attracting domestic and international homebuyers. The city offers many housing options, from luxury condos to family-friendly suburban neighborhoods.
Orlando's focus on economic growth and innovation and its commitment to community development and sustainability make it an attractive housing market. The city's quality of life, bolstered by its entertainment options, cultural diversity, and educational institutions, continues to draw many homebuyers.
Median sale price in Orlando: $385,096
Tampa, Florida
With its beautiful beaches and sunny climate, Tampa is a desirable destination for those seeking a coastal lifestyle. Sectors like finance, healthcare, and technology bolster the city's economy. Tampa's blend of urban and suburban settings and its cultural diversity appeal to various homebuyers.
The real estate market in Tampa is vibrant, driven by the city's economic growth and quality of life. Housing options range from waterfront properties to modern urban apartments, catering to different preferences and lifestyles. Tampa's investment in infrastructure and community amenities enhances its livability.
Tampa's strategic location on Florida's Gulf Coast and its focus on sustainable development and vibrant community life contribute to its booming housing market. The city's natural beauty, economic opportunity, and diverse housing options make it a top choice for homebuyers.
Median sale price in Tampa: $459,000
Use Quicken Loans to Check Top Lender Rates
- Powerful home equity solutions
- Get transparent rates from providers
- TrustPilot Rating 4.6 out of 5
- Connect with lenders for $0
- 100% online experience
Summary of best housing markets in the U.S.
City | Median Price per Square Foot | Median Sale Price | Average Time on Market |
Buffalo, N.Y. | $124 | $226,708 | 57 days |
Cincinnati, OH | $161 | $249,981 | 46 days |
Columbus, OH | $186 | $274,842 | 47 days |
Indianapolis, IN | $140 | $236,254 | 64 days |
Providence, RI | $242 | $425,818 | 36 days |
Atlanta, GA | $263 | $410,089 | 60 days |
Charlotte, NC | $244 | $419,900 | 54 days |
Cleveland, OH | $83 | $122,000 | 54 days |
Orlando, FL | $246 | $385,096 | 55 days |
Tampa, FL | $294 | $459,000 | 60 days |
The worst housing markets in the U.S.
When buying a house, it’s important to keep the stability of the housing market and of the area’s economy in mind. Even if you do not intend to invest in the real estate market seriously, your new home is an investment. When it comes time to sell the home, you want to ensure that it has retained its value at the very least. Ideally, your home value will grow when you buy and sell it. Zillow feels these markets will cool the most in 2024, based on expected annual home value declines:
- New Orleans
- San Antonio
- Denver
- Houston
- Minneapolis
FAQs
What do I need to know about interest rates?
Home prices aren’t the only thing you need to consider when figuring out your budget. The Federal Reserve has been raising interest rates (also referred to as “Fed hikes”), which has raised the average mortgage payment for new homeowners. To find out your interest rate on a mortgage, you can apply for a pre-approval. This will provide you with the interest rate that you qualify for (based on rates at the time of your application) and the mortgage amount that you’re pre-approved for.
How do I find a realtor?
There are a few ways you can find a realtor. Many people find their realtor through word of mouth, so don’t hesitate to ask friends and family who they’ve used. If you already have a relationship with a bank or mortgage lender, they might be able to recommend some realtors in your area. Or, you can search online for realtors in your area.
A good realtor will be familiar with home prices and sales in the area. Experienced realtors might also have some insight into the home price growth in the area as well as the growth of home values in the area.
Should I keep renting instead?
There comes a point when most renters start considering buying a home. Unfortunately, there’s no easy answer to this question. If you’re trying to decide between renting or buying, you should consider your personal and financial goals. There are some benefits to renting — you typically save money because you’re not responsible for home repairs or property taxes. However, renting isn’t always more affordable than owning a home. It doesn’t hurt to apply for a mortgage pre-approval and investigate your options further. The most important thing to remember is to take your time and don’t feel pressured to place an offer on a home that is outside of your budget or isn’t going to work for you.
How have housing prices in metro areas changed year-over-year since the pandemic?
Since the onset of the pandemic, many metro areas have experienced significant changes in housing prices, with a year-over-year increase in the median home price observed in numerous regions. Factors contributing to this trend include a surge in demand for single-family homes, low inventory, and changing work-from-home policies. However, the rate of home price growth varies widely among metro areas, with some markets cooling off while others continue to see prices rise.
What impact have federal (Fed) interest rate hikes had on mortgage payments and the housing market?
Fed interest rate hikes have directly impacted mortgage payments, making home buying more expensive for potential buyers. Higher interest rates result in increased monthly mortgage payments, which can cool down demand in the housing market by making it less affordable for people to purchase homes. This can slow down home price growth in some areas, affecting both buyers and sellers.
Are renters in certain metro areas becoming more inclined to buy due to changes in the housing market last year?
In some metro areas, changes in the housing market over the last year, including adjustments in home prices and mortgage rates, have influenced renters' decisions to buy. In markets where home price growth has moderated or where rental prices have significantly increased, renting may become less attractive, prompting some renters to consider buying as a more stable and financially prudent option.
How does the median home price in the best and worst housing markets compare to last year?
The median home price in the best housing markets has generally continued to rise, albeit at a potentially slower pace than during the peak pandemic years, driven by strong demand and limited supply. Conversely, in the worst housing markets, prices may have stagnated or even declined year-over-year, reflecting reduced demand, higher inventory levels, or economic factors affecting those specific regions.
What advice do real estate agents offer to buyers navigating the current housing market fluctuations?
Real estate agents typically advise buyers to thoroughly research the housing market dynamics of their targeted metro area, including trends in home price growth, inventory levels, and mortgage rates. They may suggest considering a variety of factors, such as location, type of home (e.g., single-family vs. condo), and long-term financial commitments. Additionally, agents emphasize the importance of pre-approval for mortgages, being flexible with one's wishlist, and preparing for possible Fed rate hikes that could affect buying power.
Why you should consider investing in the housing market
Despite the high mortgage rates, people will continue buying and selling homes. The housing market has cooled compared to just a couple of years ago. There is more inventory and fewer buyers to compete with. And despite the mortgage rates, home values continue to rise in many country areas.
First-time homebuyers still have access to first-time homebuyer programs, which can come with lower interest rates or down payment requirements. This can be especially helpful if you’re looking to buy in an area with steady growth. Additionally, mortgage rates are expected to decrease eventually. When this happens, the market will likely get more competitive again. This can put homeowners in a good position to profit from selling their homes.
Related:
The bottom line
Buying a home is one of the biggest financial decisions you will ever make. As with many of life’s milestones, there is never a perfect time to buy a house. It’s a personal decision that should be made according to your needs and financial status.
When you consider purchasing a home, it’s important to consider the trends in the area. Housing market rankings from major publications can be helpful, but they generally don’t cover every market in the country. Your realtor can help you learn more about your local housing market trends.
If you’re considering a move or investing in non-owner-occupied real estate, reviewing the best housing markets in the country can be extremely helpful. No matter where you decide to invest in real estate, be sure to take the time to study the trends and projections for the area. There are no guarantees in life or real estate, but the growth of these markets indicates that they are good investments for the future.
*Median sales prices from Realtor.com.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Share this article
