A city that's famous for its blustery winters and hot chicken wings is predicted to be the hottest housing market this year, according to real estate marketplace Zillow
Buffalo's top ranking is the result of recent increases in the number of jobs created compared to the number of approved new home construction projects. It also is expected to maintain steady home values.
Zillow's Predictions For Hottest Housing Markets Of 2024
1. Buffalo, New York
2. Cincinnati
3. Columbus, Ohio
4. Indianapolis
5. Providence, Rhode Island
6. Atlanta
7. Charlotte, North Carolina
8. Cleveland
9. Orlando, Florida
10. Tampa, Florida
Zillow's list is based on analysis of forecast home value growth, recent housing market velocity (how long it takes for a home to go pending) and projected changes in the labor market, home construction activity and number of homeowner households.
Charlotte, last year's hottest market, remains near the top of the list in 2024 because of expectations for a modest increase in home values.
Of the markets Zillow studied, the coolest metro areas are expected to be New Orleans, Denver, Minneapolis, Houston and San Antonio, Texas, all of which are expected to see declines in home values. Zillow expects New Orleans to lead the pack with the typical home value falling by 6% in 2024.
Hartford, Connecticut, had the highest year-over-year home value growth in 2023 at 11%, but that rate is expected to drop to 0.7% this year.
Home value growth slowed in 2023, largely because mortgage interest rates hit their highest levels since 2008. Only 15 of the 50 largest markets are expected to see home values rise in 2024, and even the fastest-growing markets of 2023 are expected to see significant slowdowns this year.
Baby boomers and millennials are huge generations, and both are active in the housing market. Boomers are bucking the trend of previous generations who exited the housing market as they got older, and millennials are aging into their prime home-buying years as they hit their 30s.
Only 14 of the 50 largest markets are expected to see homeownership rise this year. Columbus is expected to see the greatest increase in homeownership with 11.4% more people forming households - assuming there are homes available for them to buy. Austin and Memphis, Tennessee, follow at 9.7% and 9.6%, respectively.
