Where is the hottest real estate in the US? (2024)

Where is the hottest real estate in the US?

San Jose, Oakland, and San Diego rank as the top three hottest housing markets among large cities—defined as cities with populations of 350,000 or more. One factor that is likely contributing to increasing prices in these states is the difficulty of adding housing supply.

San Jose, Oakland, and San Diego rank as the top three hottest housing markets among large cities—defined as cities with populations of 350,000 or more. One factor that is likely contributing to increasing prices in these states is the difficulty of adding housing supply.

State of play: Columbus, Ohio; Indianapolis; Providence, Rhode Island; Atlanta; Charlotte, North Carolina; Orlando, Florida; and Tampa, Florida, also top this year's ranking of Zillow's hottest housing markets of 2024. Meanwhile, New Orleans, San Antonio, Denver, Houston and Minneapolis sit at the bottom.

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.

Buying in California and Hawaii can cost up to 60% or more of local per-capita incomes. Due to Hawaii being both popular and expensive, the housing market in the Kahului-Wailuku-Lahaina MSA is overvalued compared with local per capita incomes.

The most undervalued markets to purchase a home continue to be located predominantly in the Midwest and the East Coast, led by Detroit, Cleveland, Philadelphia, St. Louis and Oklahoma City.

“The housing market is off to a good start this year, as consumers benefit from falling mortgage rates,” said NAR chief economist Lawrence Yun in the association's December pending home sales report. NAR forecasts that sales will rise by 13 percent in 2024.

Of the 10 metro areas where home-price appreciation was growing the fastest, eight were in the Midwest. The five metro areas where home prices grew the fastest in January were: Indianapolis, Ind.; Grand Rapids, Mich.; Milwaukee, Wisc.; Cleveland, Ohio; and Providence, R.I.

While it's true that recessions can create opportunities to purchase homes at potentially lower prices, it's not guaranteed. Waiting for a recession to buy a house may not be the best strategy as home prices could remain high regardless of a recession.

Topping the list of the most expensive city to buy a home in 2023 is Hong Kong. With a staggering house price to annual income ratio of 18.8, it's no surprise that owning a home in this bustling metropolis comes at a premium.

Where in us are house prices dropping?

States with falling home prices

Between the second quarters of 2022 and 2023, home prices fell the most in Nevada, decreasing by 5.3%, followed by Utah (-4.5%) and Idaho (-4.1%).

No, the property prices in Florida were up by 4.5% YOY in January 2024. However, you can still find some of the cheapest places to live in Florida. With a 66.3% rise in the past five years, exploring budget-friendly cities is crucial amid the current scarcity of available properties in FL.

Within Florida, Tampa Bay has one of the most overpriced housing markets in the nation, according to new research from Florida Atlantic University. Extremely low mortgage rates drove our red-hot housing market, particularly during the epidemic, and intensified bidding wars.

Cape Coral emerged as the most overvalued housing market in the country, with buyers paying a 47.99 percent premium on the typical home, according to August data from the Top 100 U.S. Housing Markets. Other measured metropolitan areas in Florida that also made the top 10: No.

In 2024, inflation is expected to nearly hit the Federal Reserve's 2% target rate, though that will likely come with slower economic growth, the nonpartisan Congressional Budget Office said in December.

Texas Housing Market Overview

In January 2024, home prices in Texas were up 1.2% compared to last year, selling for a median price. On average, the number of homes sold was up 5.8% year over year and there were 18,481 homes sold in January this year, up 17,560 homes sold in January last year.

Median Sold Price

Based on all homes sold in the last 12 months. Homes in Las Vegas have sold for 3% less than they did a year ago. Summary: The median home sold price in Las Vegas was $405,014 in February 2024, down 3% from last year, and the median price per square foot was $241.

1. Commercial Real Estate: Commercial properties, such as office buildings, retail spaces, and industrial warehouses, can offer substantial income potential, especially in prime locations with high demand. Long-term leases with businesses and corporations can provide stable cash flow.

A variety of factors have contributed to higher sale prices, including interest rates, low inventory and inflation. Here's more about market conditions and which outside influences affect home prices, plus tips on how to become a homeowner without breaking the bank.

55% of renters in California are cost burdened, compared to 50% in the US; 38% of homeowners in California are cost burdened, compared to 28% in the US. California has higher rates of cost-burdened households than the US as a whole. in ten mortgaged homeowners—spend 30% or more of their household income on housing.

What is the fastest growing real estate market in Florida?

Florida real estate market predictions have scoped out amazingly well, as the state is home to four of the top highest-growing real estate markets in the country. These include - Miami, Tampa, Orlando, and Jacksonville which have shown tremendous growth in market valuation.

The most undervalued markets to purchase a home continue to be located predominantly in the Midwest and the East Coast, led by Detroit, Cleveland, Philadelphia, St. Louis and Oklahoma City. The most undervalued markets to rent a home are also concentrated in the Midwest, led by Omaha, St.