The housing market has been challenging in recent months, with high mortgage rates, low inventory, and soaring prices making it difficult for many Americans to become homeowners. However, there are some cities that offer a different housing market landscape and are worth considering for homebuyers, according to data from Realtor.com.
These cities stand out for their affordability and quality of life. Six out of the 10 metropolitan areas examined have median home list prices lower than the national average of $429,500 in September. Additionally, seven of these markets feature a price per square foot below the national median of $222.
What makes these cities appealing is not just their lower prices, but also the better quality of life they offer. Dottie Herman, vice chair and former CEO for Douglas Elliman Real Estate, explains that factors like affordability, lower taxes, larger properties, favorable weather conditions, and access to mid-to-large-size cities are drawing more people to these areas.
Moreover, with the rise of hybrid and remote work schedules, employees no longer need to live close to their job. This flexibility allows them to explore cities that were previously out of reach.
Realtor.com economist Jiayi Xu emphasizes the critical role of affordability in shaping home buying decisions, stating that the list of housing markets reflects this importance.
Here are 10 cities to keep an eye on if you’re planning to buy a home in 2024, according to Realtor.com:
1. Chicago-Naperville-Elgin, Illinois, Indiana, and Wisconsin: Chicago offers a range of “in-town” properties, with opportunities for short-term rentals or timeshare arrangements, allowing homeowners to enjoy city attractions and amenities.
2. Atlanta-Sandy Springs-Alpharetta, Georgia: Despite its median list price being slightly below the national average, Atlanta offers more square footage for each dollar, giving homebuyers better value for their money.
3. Myrtle Beach-Conway-North Myrtle Beach, South Carolina: Home prices in this coastal metro have dipped but are on the rise again, making it an attractive location for potential buyers.
4. Dallas-Fort Worth-Arlington, Texas: Dallas offers growth, diversity, and a promising future, with projected population growth and increasing property values.
5. Minneapolis, Minnesota — St. Paul-Bloomington, Wisconsin: Minneapolis remains priced 5% below the national average in terms of square footage, offering affordability to potential homebuyers.
6. Phoenix-Mesa-Chandler, Arizona: Despite being one of the pricier markets on the list, Phoenix still offers more affordable housing compared to other big western metros like San Francisco and Los Angeles, along with a warm climate.
7. Kansas City, Missouri, and Kansas: Kansas City has outperformed its neighboring city, St. Louis, making it an appealing location for homebuyers.
8. Memphis, Tennessee: Memphis is the most affordable metro market in Tennessee, with stable home prices and a favorable market.
9. Tampa-St. Petersburg-Clearwater, Florida: Tampa offers higher price tags, but the allure of warmer weather is a significant draw for homebuyers, as climate plays a key role in relocation preferences.
10. Charlotte-Concord-Gastonia, North Carolina, and South Carolina: Cities like Raleigh, Charlotte, and Greensboro offer a relatively low cost of living, a healthy job market, and are expected to be ripe for investors in 2024.
These cities provide opportunities for potential homeowners to find affordable housing options, alongside a variety of amenities, good quality of life, and growth potential in the coming years.
