Affordable Housing Drives Charlotte to Lead Among Zillow’s Hottest Housing Markets of 2024

Charlotte has been highlighted as one of the top major housing markets this year, according to Zillow’s new 2024 report. The key factor influencing the real estate market is affordability, propelling markets in the South, Great Lakes, and parts of the Midwest to lead Zillow’s 2024 rankings.

The ranking, which focuses on the 50 largest metropolitan areas in the nation, considers several factors. These include Zillow’s home value growth predictions, the pace at which sellers are finalizing deals with buyers, job growth relative to new housing permits, and the increase in owner-occupied homes.

“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. “I’m cautiously optimistic that the housing market will get back on stable footing in 2024 — we shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”

Buffalo has the highest ratio of new jobs to new home permits, indicating a strong demand expected to drive up prices. This is due to new jobs attracting more residents, heightening competition, and increasing prices if new housing doesn’t keep pace. Cincinnati is seeing a rapid movement of housing inventory, while Columbus is noted for its swift growth in owner-occupied households, signaling family growth and population increase. In 2023, housing costs soared to record levels for both buyers and renters, making transactions costly even for equity-rich homeowners. Zillow’s analysis found that the most popular markets in 2023 were those that were relatively more affordable. Data from United Van Lines indicates that relocating households were drawn to areas where homes were on average $7,500 cheaper than their previous locations.

While affordability is expected to improve in 2024, it remains a crucial factor in the housing market. Affordable markets in the Great Lakes and Midwest are already experiencing high competition, with homes selling faster than the national average.

Charlotte earned the title of Zillow’s hottest market for 2023, with Cleveland and Atlanta also making a return from last year’s top 10. In contrast, San Antonio experienced a significant drop, falling to the 49th position after being 13th last year and fourth in 2022.

 Latest stats for Zillow’s hottest markets in 2024

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