As housing prices soared to record highs in 2023, many individuals began expanding their search to more affordable housing markets. One of the latest cities to emerge as a top destination for homebuyers is Buffalo, New York.
Zillow, a prominent real estate marketplace company, annually ranks the hottest and most in-demand housing markets, and in 2024, Buffalo claims the top spot. It's among seven cities that were not included in last year's ranking.
In 2024, Cincinnati secured the second position, followed by Columbus, Ohio, at No. 3. Indianapolis and Providence, Rhode Island, rounded out the top five at Nos. 4 and 5, respectively.
Charlotte, North Carolina, last year's leading market, slipped to No. 7, while Cleveland dropped from No. 2 in 2023 to No. 8 this year. Atlanta made significant strides, climbing from No. 9 in 2023 to No. 6 in 2024.
Zillow also highlighted Orlando and Tampa in Florida, ranked Nos. 9 and 10, respectively, which did not feature in last year's rankings.
Who's driving the purchasing trend? According to Zillow's findings, two demographic groups stand out as the most active participants in the housing market: baby boomers aged 60 to 69, and millennials aged 28 to 43.
For individuals aged 50 and above, particularly those living on fixed incomes, affordable housing is a primary concern, as highlighted in a 2023 report released by the Joint Center for Housing Studies at Harvard University. The report reveals that in 2021, nearly 11.2 million older adults (aged 65 and above) allocated more than 30 percent of their household income towards housing expenses.
While Zillow anticipates an improvement in affordability this year, it underscores that affordability will remain a critical factor influencing home purchase decisions.
In Buffalo, the median home value is estimated at $248,445, accompanied by an average mortgage payment of $1,792, which places it as the second most affordable city on Zillow's top 10 list (with Cleveland claiming the top spot). Conversely, Zillow's fifth-ranked city, Providence, stands as the most expensive on the list, boasting an average home value of $455,609 and an average mortgage payment of $3,288. As of January 10th, the average home value across the United States was $346,048.
Zillow's ranking encompasses the 50 most populous metropolitan areas in the nation, considering various factors outlined in its news release. These factors include the company's projections for home value growth, the speed of sellers securing contracts with buyers, the ratio of new jobs to new homes, and the percentage of homeowners within each area. Zillow determines its ranking through a comprehensive analysis of publicly available housing data, labor statistics, and surveys.
Here is the full list of hottest housing markets in 2024:
1.) Buffalo, New York
2.) Cincinnati, Ohio
3.) Columbus, Ohio
4.) Indianapolis, Indiana
5.) Providence, Rhode Island
6.) Atlanta, Georgia
7.) Charlotte, North Carolina
8.) Cleveland, Ohio
9.) Orlando, Florida
10.) Tampa, Florida
Zillow, a prominent real estate marketplace company, annually ranks the hottest and most in-demand housing markets, and in 2024, Buffalo claims the top spot. It's among seven cities that were not included in last year's ranking.
In 2024, Cincinnati secured the second position, followed by Columbus, Ohio, at No. 3. Indianapolis and Providence, Rhode Island, rounded out the top five at Nos. 4 and 5, respectively.
Charlotte, North Carolina, last year's leading market, slipped to No. 7, while Cleveland dropped from No. 2 in 2023 to No. 8 this year. Atlanta made significant strides, climbing from No. 9 in 2023 to No. 6 in 2024.
Zillow also highlighted Orlando and Tampa in Florida, ranked Nos. 9 and 10, respectively, which did not feature in last year's rankings.
Who's driving the purchasing trend? According to Zillow's findings, two demographic groups stand out as the most active participants in the housing market: baby boomers aged 60 to 69, and millennials aged 28 to 43.
For individuals aged 50 and above, particularly those living on fixed incomes, affordable housing is a primary concern, as highlighted in a 2023 report released by the Joint Center for Housing Studies at Harvard University. The report reveals that in 2021, nearly 11.2 million older adults (aged 65 and above) allocated more than 30 percent of their household income towards housing expenses.
While Zillow anticipates an improvement in affordability this year, it underscores that affordability will remain a critical factor influencing home purchase decisions.
In Buffalo, the median home value is estimated at $248,445, accompanied by an average mortgage payment of $1,792, which places it as the second most affordable city on Zillow's top 10 list (with Cleveland claiming the top spot). Conversely, Zillow's fifth-ranked city, Providence, stands as the most expensive on the list, boasting an average home value of $455,609 and an average mortgage payment of $3,288. As of January 10th, the average home value across the United States was $346,048.
Zillow's ranking encompasses the 50 most populous metropolitan areas in the nation, considering various factors outlined in its news release. These factors include the company's projections for home value growth, the speed of sellers securing contracts with buyers, the ratio of new jobs to new homes, and the percentage of homeowners within each area. Zillow determines its ranking through a comprehensive analysis of publicly available housing data, labor statistics, and surveys.
Here is the full list of hottest housing markets in 2024:
1.) Buffalo, New York
2.) Cincinnati, Ohio
3.) Columbus, Ohio
4.) Indianapolis, Indiana
5.) Providence, Rhode Island
6.) Atlanta, Georgia
7.) Charlotte, North Carolina
8.) Cleveland, Ohio
9.) Orlando, Florida
10.) Tampa, Florida