Top 10 US Cities For Buying A New Home In 2024
The top 10 US cities for buying a new home in 2024 come with the exciting opportunity to explore those cities that offer a promising real estate market in 2024.
Author:Paolo ReynaReviewer:James PierceDec 27, 20239.2K Shares211K Views
Thetop 10 US cities for buying a new home in 2024come with the exciting opportunity to explore those cities that offer a promising real estate market in 2024.
As the landscape of housing preferences and economic conditions evolves, certain cities stand out for their affordability, growth potential, and overall appeal to prospective homebuyers.
In this guide, we delve into the top 10 US cities that are poised to be ideal destinations for those looking to invest in a new home this year.
Where Will Homebuyers Go In 2024?
The real estate landscape in 2024 is defined by two distinct trends: the emergence of affordable midwestern and northeastern alternatives to costly major cities, and the resurgence of western metropolitan areas that faced significant sales declines in 2023.
Surprisingly, despite the renowned expense of California, half of the cities securing spots in the top 10 are located within the state, including the Los Angeles and San Diego regions. This anomaly is attributed to the sales slump experienced across much of California in 2023.
With the Federal Reserve scaling back on rapid rate increases and a projected decline in mortgage rates, Realtor.com anticipates a rebound in select Southern California markets as new inventory becomes available.
There are a number of compelling reasons why homebuyers will flock to the midwestern and northern cities highlighted by Realtor.com. A key factor is their median housing prices, which typically fall below the national median of $431,000.
These areas have displayed resilience against the impact of high mortgage rates, given that many homeowners have already paid off their loans, providing a unique advantage.
These cities offer an appealing combination of a high quality of life at a lower cost, coupled with proximity to major metropolises. For instance, Worcester, Massachusetts, located near Boston, stands out in this regard.
Residents enjoy abundant cultural amenities, recreational opportunities, and quality schools, making these areas attractive to homebuyers seeking urban features at more affordable small-town prices.
Moreover, many of these metropolitan areas boast robust job markets, with unemployment rates in all midwestern and northeastern metros, except Toledo, Ohio, projected to be at or below the expected national rate of 4.2% by the end of 2024. This economic stability enhances the overall appeal of these locales for prospective homebuyers.
Will Home Affordability Get Better In 2024?
When asked to predict whether house prices would rise or fall in the next year, some experts have conflicting predictions. According to recent estimates from Morgan Stanley, prices might decline by as much as 5% by the end of 2024 if interest rates stay high. at the same token, Moody's anticipates a 3.5% drop in prices at that point.
However, by mid-2024, Zillow projects a 4.9% increase in prices, while the National Association of Realtors projects a 2.6% increase in house prices through 2024.
Mortgage interest rates are also completely unpredictable. This could be the last interest rate hike from the Federal Reserve, according to the most recent statistics from the US Bureau of Labor Statistics, which revealed that inflation has begun to decrease.
Also, make sure to look at the top mortgage lenders that we have selected. By the end of 2025, mortgage interest rates might reach 5.5%, according to the Mortgage Bankers Association. That's a big drop from where they are now, suggesting that 2024 would be a more favorable year to purchase a home.
Housing Market Predictions For 2024
According to Zillow's analysis, SmartAsset has ranked in the top 2,000 US zip codes in terms of expected house price rises. Hotspots for growth include Miami and Knoxville, according to the research. Rio Grande City, TX, saw the highest rise at 12.3%.
There is room for development in the 37918 and 37920 neighborhoods of Miami and Knoxville, respectively, with the former seeing an 8.3% rise and the latter a 9.5% increase.
North Carolina's Winston-Salem, North Carolina, South Carolina's Myrtle Beach, Georgia's Savannah, and North Carolina's Charlotte all had increases of 7.8 percent, putting them squarely in the top 50 of the surge in the South.
Neighborhoods including Washington Heights, Fort George, and Jamaica in New York City are expected to have a 7% or higher spike by next summer.
Also, major cities are seeing significant expansion; for example, the 60623 neighborhood in Chicago is projected to expand by 4.9%, the 85009 region in Phoenix by 6.9%, and the 94121 area in San Francisco by 1.7%.
Some notable areas in California that have seen rises include Rancho Palos Verdes, Goleta, North Tustin, Encinitas, and San Diego's Carmel Valley neighborhood.
Top 10 US Cities For Buying A New Home In 2024
Nashville, Tennessee
Nashville, Tennessee, renowned as "Music City," is not only celebrated for its vibrant music industry but also for its dynamic real estate market. In March, the city witnessed a substantial surge with 6,071 active listings, marking an impressive 299% increase from the previous year.
The combined real estate value in Nashville stands at a substantial $209 billion, equivalent to the GDP of New Zealand. With a median home value of $265,000, there is ample real estate for agents to capitalize on potential commissions.
Despite Nashville's relatively low annual median real estate agent salary of $31,550, Tennessee's overall low cost of living, ranking tenth on the 2022 Annual Average Cost of Living Index, compensates for this.
Huntsville, Alabama
Huntsville, Alabama, home to NASA's Marshall Space Flight Center and esteemed universities, experiences a high demand for housing. In March, active property listings in Huntsville soared to 1,446, showcasing an impressive 312% increase from the previous year.
Real estate agents in Huntsville can expect an annual median salary close to the national median at $48,980. Notably, the 90th percentile of agents has the potential to earn up to $204,750, and with Alabama boasting the fourth lowest cost of living among all states, agents have substantial earning potential.
San Jose, California
San Jose, California, the largest city in Silicon Valley, offers real estate agents access to a staggering $568 billion worth of real estate, with a remarkable median home value of $1.1 million.
Despite the relatively high cost of living in San Jose, agents can anticipate a median annual salary of over $60,000, with those in the 90th percentile approaching $130,000. In March, the San Francisco Bay Area, including San Jose, reported 870 active listings, representing a 10% increase from the previous year.
Raleigh, North Carolina
Raleigh, North Carolina, part of the thriving Research Triangle, consistently ranks among the best places to live. Boasting a high quality of life, low cost of living, and growing job opportunities, Raleigh exhibits the fourth-fastest-growing economy among U.S. cities, with a 1.6% 2023 GDP growth rate.
The Raleigh-Cary region had 2,597 active property listings in March, reflecting a substantial 273% increase from the previous year. While the median annual agent salary in Raleigh is $38,530, there is considerable growth potential, and agents in the 90th percentile have the opportunity to earn over six figures.
Salt Lake City, Utah
Salt Lake City, Utah, renowned for its breathtaking natural beauty, stands as the capital and largest city of the state. In recent years, the real estate market in Salt Lake City has experienced remarkable growth, fueled in part by its burgeoning tech sector, often referred to as “Silicon Slopes.”
Agents operating in Salt Lake City can anticipate an annual median salary of $48,520, slightly surpassing the national median salary of $48,340. The income potential for agents in this vibrant city is promising, as Salt Lake City holds the 50th position among the most valuable cities in the U.S., boasting a total real estate value of $103 billion and a median home value of $312,000.
Furthermore, Salt Lake City ranks 51st for the highest number of households, and as of March 2023, it recorded 1,546 active listings, marking a substantial 170% increase from the previous year. Notably, the city is the sixth fastest-growing in the nation, based on 2023 GDP growth.
Seattle, Washington
Seattle, Washington, the largest city in the Pacific Northwest with a population exceeding 700,000, offers a favorable environment for real estate agents. Home to tech giants like Microsoft and Amazon, and graced with stunning mountain and ocean views, Seattle attracts a continuous influx of individuals seeking homes.
Real estate agents in the Seattle-Tacoma-Bellevue region can earn a median annual salary of $61,520, significantly surpassing the national median. While the cost of living in Washington ranks 40th nationwide, Seattle is the eighth most valuable U.S. city, boasting a total real estate value of $700 billion—equivalent to the value of Meta (formerly Facebook) or the GDP of Switzerland. The median home value in Seattle stands at $498,000.
With the 14th highest number of households, the Seattle region had 3,105 active listings in March, reflecting a notable 66% increase from the previous year. Additionally, Seattle ranks as the third fastest-growing U.S. city in 2023 based on GDP.
Austin, Texas
Austin, Texas, emerges as another excellent option for real estate agents, serving as the capital of Texas with a population nearing 1 million. Home to major companies like Tesla, Apple, and IBM, Austin boasts a thriving real estate market.
The city's active listings in March reached an impressive 6,531, representing a remarkable year-over-year increase of 312%. Austin holds a total real estate value of $248 billion and claims the title of the second-fastest-growing city in the U.S., with a 2023 GDP growth rate of 2.8%.
Real estate agents in Austin can expect to earn a median annual salary of $59,770, surpassing the national median by over $10,000—a noteworthy accomplishment for a city situated in a state with the 15th lowest cost of living.
Houston, Texas
Houston, Texas, with a population exceeding 2.3 million, stands as the fourth-largest city in the U.S. Renowned as the "Energy Capital of the World," Houston hosts over 500 oil and gas companies, contributing to a robust real estate market. Ranking as the 18th fastest-growing city in the U.S., Houston boasts $535 billion in real estate value and a median home value of $211,000.
March witnessed a remarkable 17,407 active listings in Houston, showcasing a 63% increase from the previous year. While the median annual salary for agents in Houston is $38,340, those in the 90th percentile have the potential to earn over $100,000. Considering Texas has the 15th lowest cost of living in the U.S., agents can retain more of their salary.
Denver, Colorado
Denver, Colorado, the capital city with a population exceeding 700,000, serves as a major transportation hub and offers numerous outdoor attractions. The city ranks as the eighth-fastest growing in the U.S., fueled by a burgeoning tech industry.
Denver's real estate market boasts a median home value of $430,000 and a total real estate value of $439 billion, comparable to JPMorgan Chase & Co or Argentina's GDP.
Despite a relatively high cost of living, agents in Denver can anticipate a median annual salary of $61,480, reaching over $130,000 for those in the 90th percentile. Active property listings in Denver reached 3,429 in March, marking an impressive 86% increase from the previous year.
Oklahoma City, Oklahoma
Oklahoma City, Oklahoma, emerges as one of the fastest-growing cities in the U.S., experiencing a 2.2% population growth since 2020. A business-friendly environment and low tax rates support the city's robust economy, which contributes to its expansion.
Agents in Oklahoma City earn a median annual salary of $38,350, with those in the 90th percentile reaching up to $160,200. Benefiting from the second lowest cost of living among U.S. states, agents can make their salaries go further.
March witnessed an encouraging 129% increase in active property listings in Oklahoma City, reaching 2,979. This surge indicates ample opportunities for agents to expand their business in this thriving city.
FAQs - Top 10 US Cities For Buying A New Home In 2024
Which U.S. Cities Are Projected To Be The Most Affordable For Purchasing A New Home In 2024?
To determine affordability, factors such as median home prices, cost of living, and economic conditions are considered.
What Are The Key Features That Make A City Suitable For Buying A New Home In 2024?
Factors like job opportunities, quality of life, amenities, and growth potential play a crucial role in evaluating a city's attractiveness for homebuyers.
How Do Real Estate Experts Assess The Market Conditions For Homebuyers In 2024?
Real estate experts typically analyze trends in housing inventory, interest rates, and economic indicators to assess market conditions for homebuyers.
Which Cities Are Expected To Experience The Highest Growth In Home Values In 2024?
Cities with strong economic growth, high demand, and limited housing supply are likely to see significant increases in home values.
What Role Do Economic Factors Play In Determining The Best Cities For Buying A New Home In 2024?
Economic factors such as job market stability, GDP growth, and overall economic health contribute to the desirability of a city for homebuyers.
Final Thoughts
The real estate landscape in 2024 presents a spectrum of opportunities for individuals aspiring to become homeowners.
Whether it's the allure of burgeoning job markets, the promise of a high quality of life, or the potential for property value appreciation, these top 10 cities showcase diverse attributes that cater to various preferences.
As you embark on your homebuying journey in 2024, consider the unique offerings each of these cities provides, ensuring a well-informed and gratifying investment in your new home.
Paolo Reyna
Author
James Pierce
Reviewer
Latest Articles
Popular Articles