Even if rising home ownership costs make it impossible for buyers to afford, some property markets will remain hot in 2023, mainly due to their relative affordability relative to the rest of the country. USA. a new forecast found.
The top spots also have another thing in common: They’re all in the South.
Based on a variety of factors, including home affordability, job growth, migration rates and housing supply, the National Association of Realtors (NAR) analyzed 179 markets to determine which would be the most profitable. bring the highest value to the buyer. The data looks back a year to October 2022 and reflects expected demand from buyers in 2023.
The median home price in some of these markets is no less than the national average of $398,500. However, these cities score well on other metrics such as job growth or housing supply.
Here are the 10 best places to buy a home in 2023, according to NAR:
1. Atlanta-Sandy Springs-Marietta, Georgia
Average house price: $371,200
With big tech companies like Apple, Microsoft and Visa opening offices in Atlanta in recent years, the city has a thriving job market.
The Atlanta metro area remains relatively affordable compared to other areas in the country. More than 20% of renters can afford a median-priced home in the area, based on a calculation that includes a 10% down payment. the national average is 15.1%.
2. Raleigh, North Carolina
Average house price: $460,500
A fast-growing tech hub with low unemployment, Raleigh has seen home prices increase by nearly 30% since 2020. With a median home price of nearly $500,000, it’s the most expensive market. among the top 10 markets for 2023.
However, “local listing prices are down from this summer’s high, inventory has increased by 188% over the past 12 months, and unemployment in Raleigh is lower than it was before the pandemic.” , said Jay Nelson, communications director for Raleigh Regional. broker association, in a recent interview with The News & Observer.
3. Dallas-Fort Worth-Arlington, Texas
Average house price: $390,100
Dallas-Fort Worth is another emerging tech hub in the United States, with job growth nearly twice as high as the national average, of 3.4% year-over-year since October of last year. 2022.
While the housing supply is less than the national average, inventory increase in 2022with active listings tripling the national average, according to NAR data.
4. Fayetteville-Springdale-Rogers, Arkansas-Missouri
Average house price: $328,400
Home to three Fortune 500 companies — Walmart, Tyson Foods and JB Hunt Transport Services — the metropolitan area ranks second among the NAR’s top 10 rankings for housing affordability.
It is also a growing market, with an annual population growth of 2% — much higher than the national average of 0.01%.
Housing is also cheap, with prices second only to Huntsville, Alabama, on this list. The percentage of renters who can afford the typical home is nearly double the national average.
5. Greenville-Anderson-Mauldin, South Carolina
Average house price: $335,400
While housing affordability is on par with the national average, job growth in the sector has been strong, especially for high-paying IT jobs like computer programming or web development.
There are also more homes to choose from as housing supply in 2022 is more than double the national average.
6. Charleston-North Charleston, South Carolina
Average house price: $416,800
Out of the top 10 rankings, the Charleston area is second only to Raleigh in terms of highest median home prices. It is also well below the national average when it comes to affordability.
However, this fast-growing market has migration rates and job growth nearly twice the national average.
7. Huntville, Alabama
Average house price: $327,500
Alabama’s most populous city is the most affordable area for homes on this list. Just under 30% of renters can afford a regular home with a 10% down payment, nearly double the national average.
According to NAR, increasing job opportunities and low cost of living will continue to attract more workers into 2023.
8. Jacksonville, Florida
Average house price: $398,000
Like many Florida cities, Jacksonville became a migration hotspot during the pandemic, with house prices skyrocketing almost 58% since the beginning of 2020.
According to the NAR, home prices in Jacksonville are roughly on par with the average in the US, but more affordable than in other areas of the state.
Eligible income to buy a mid-priced home with a 10% down payment is about $98,000. That’s less than most major metropolitan areas statewide, including Miami, where income qualifies with a 10% down payment of $140,000.
Jacksonville also has a strong job market and a good housing supply compared to the rest of the country.
9. San Antonio-New Braunfels, Texas
Average house price: $342,700
San Antonio becomes migration hotspot during pandemic, especially from Californiawhere house prices and cost of living tend to be more expensive.
The city has also become a destination within the state of Texas. Many potential home buyers have immigrated to San Antonio from nearby Austinlargely due to lower house prices.
In San Antonio, residents earning $85,000 qualify for a mid-priced home, including a 10% down payment, far below the $130,000 requirement in Austin. Employment growth was also stronger than the national average.
10. Knoxville, Tennessee
