In this article, we will be navigating through the 25 fastest-growing real estate markets in the US. If you wish to skip our detailed analysis, you can move directly to the 5 Fastest Growing Real Estate Markets in the US.
Real Estate Overview and Trends in Growing Real Estate Markets
Homebuyers remained subjected to unfavorable real estate conditions during 2023. As mortgage rates climbed, home prices soared. Home inventory levels were historically low which further reduced the probability of finding a new home. Existing homeowners were reluctant to sell their houses since they had to pay a higher mortgage on a new home. The demoralizing housing scenario in the United States left many Americans including first-time home buyers deprived of the ability to purchase a new home. Some of the expensive housing markets during 2023 have also been covered.
Despite challenges, 2024 seems to mark a recovery for the US housing market. Mortgage rates are easing which has improved the confidence of both builders and buyers. Certain real estate markets in the country have been forecasted to rapidly grow and rebound in 2024. While falling mortgage rates are expected to drive growth in western metros, affordability will be the driving factor for midwestern and northeastern metros. Growth in sales is the main indicator of the overall market progress. As reported by Realtor, double-digit sales growth in 2024 has been projected for metros which tend to be expensive markets in the West. Some of these include Oxnard, Las Vegas, San Diego, and Sacramento.
On the other hand, affordability is the other major factor driving the market growth in the midwestern and northeastern metros. These metros offer cheaper prices as compared to large urban areas. As recorded in October 2023, the median listing price in most of these metros was lower than the national average. Underpriced housing markets in the US have also been previously discussed. Furthermore, a larger portion of people are safe from the mortgage effect in these metros since they live in homes without a mortgage. Another factor contributing to the real estate market in these places is the standard of life they have maintained through amenities. Apart from opportunities for education and recreation, employment options are diverse and many. It has been forecasted that most of these metros will have their unemployment rates lower than the national average, by the end of 2024.
Home Builders Contributing to New Construction
While the real estate market makes a recovery, American homebuilders continue to cater to the diverse needs of homebuyers across the country. Some of these include LGI Homes, Inc. (NASDAQ:LGIH), KB Home (NYSE:KBH), and Lennar Corporation (NYSE:LEN). You can also take a look at the largest homebuilders in USA.
LGI Homes, Inc. (NASDAQ:LGIH) engages in the design, construction, and sale of homes across 36 markets in 21 states. The company has closed more than 65,000 homes in its history. On February 8, LGI Homes, Inc. (NASDAQ:LGIH) reported the grand opening of its new community “Whisper Ridge” in Hilliard, Florida. Prices for new homes start in the $290,000s. The community also offers a short commute to Amelia Island.
KB Home (NYSE:KBH) is one of the largest home builders in the United States. The firm builds quality homes that are customized as per the buyer’s preference and available budget. On February 9, KB Home (NYSE:KBH) reported the grand opening of its new community in Buckeye, Arizona. Amenities include a children’s playground, picnic areas, and ramadas. Employment centers in the Phoenix area can also be easily accessed. Pricing for the new homes starts from the low $300,000s.
Lennar Corporation (NYSE:LEN) is an American home construction company that constructs affordable, move-up, and active adult homes. It also engages in the development of high-quality multifamily rental properties. On February 9, Lennar Corporation (NYSE:LEN) reported that its Next Gen “Home within A Home” floorplan is selling at four new master-planned communities in the Tampa market. The design is more suitable for multi-generational living. Those who wish to seek living with multiple generations under one roof can resort to the new communities namely Berry Bay, Balm Grove, Stonegate Preserve, and Triple Creek.
Now that we have analyzed the real estate scenario in the US, let’s move to the 25 fastest-growing real estate markets in the country.
25 Fastest Growing Real Estate Markets in the US
Our Methodology:
In order to compile a list of the 25 fastest-growing real estate markets in the US, we sourced data from Realtor, a leading real estate source. U.S. metropolitan statistical areas have been analyzed for this purpose. Since growth in home sales as well as home prices influence the growth of real estate markets, we have chosen the combined growth in home sales and home prices as our metric, which was also sourced from Realtor. Simultaneously, the individual forecasted growth in home sales and forecasted growth in home prices for 2024 have also been mentioned. The 25 fastest-growing real estate markets in the US have been ranked in ascending order of their combined home sales and price growth.
25 Fastest Growing Real Estate Markets in the US
25. New Haven-Milford
Forecasted Growth in Home Sales: 3.5%
Forecasted Growth in Home Prices: 3.5%
Combined Home Sales and Price Growth: 7.1%
The year-over-year growth in existing home sales for New Haven-Milford was forecasted at 3.5%. The median sale price is also expected to grow by 3.5% year-over-year. Hence, the metro is a growing real estate market in the US.
24. Providence-Warwick
Forecasted Growth in Home Sales: 3.9%
Forecasted Growth in Home Prices: 3.1%
Combined Home Sales and Price Growth: 7.1%
Providence-Warwick is a growing US real estate market. The year-over-year growth in existing home sales for the metro was forecasted at 3.9%. The median sale price is also expected to grow by 3.1% year-over-year.
23. Allentown-Bethlehem-Easton
Forecasted Growth in Home Sales: 2.2%
Forecasted Growth in Home Prices: 5.0%
Combined Home Sales and Price Growth: 7.3%
The year-over-year growth in existing home sales for Allentown-Bethlehem-Easton was forecasted at 2.2%. The median sale price is also expected to grow by 5.0% year-over-year. Hence, the metro is a growing real estate market in the US.
22. Lansing-East Lansing
Forecasted Growth in Home Sales: 1.2%
Forecasted Growth in Home Prices: 6.2%
Combined Home Sales and Price Growth: 7.4%
Lansing-East Lansing is a growing US real estate market. The year-over-year growth in existing home sales for the metro was forecasted at 1.2%. The median sale price is also expected to grow by 6.2% year-over-year.
21. Augusta-Richmond County
Forecasted Growth in Home Sales: 5.8%
Forecasted Growth in Home Prices: 1.8%
Combined Home Sales and Price Growth: 7.6%
The year-over-year growth in existing home sales for Augusta-Richmond County was forecasted at 5.8%. The median sale price is also expected to grow by 1.8% year-over-year. Hence, the metro is a growing real estate market in the US.
20. Las Vegas-Henderson-Paradise
Forecasted Growth in Home Sales: 11.1%
Forecasted Growth in Home Prices: -2.3%
Combined Home Sales and Price Growth: 8.8%
Las Vegas-Henderson-Paradise is a growing US real estate market. The year-over-year growth in existing home sales for the metro was forecasted at 11.1%. The median sale price is expected to decline by 2.3% year-over-year.
19. Miami-Fort Lauderdale-Pompano Beach
Forecasted Growth in Home Sales: 3.8%
Forecasted Growth in Home Prices: 5.0%
Combined Home Sales and Price Growth: 8.8%
The year-over-year growth in existing home sales for Miami-Fort Lauderdale-Pompano Beach was forecasted at 3.8%. The median sale price is also expected to grow by 5.0% year-over-year. Therefore, the metro is a growing real estate market in the US.
18. Sacramento-Roseville-Folsom
Forecasted Growth in Home Sales: 10.3%
Forecasted Growth in Home Prices: -1.3%
Combined Home Sales and Price Growth: 9.0%
Sacramento-Roseville-Folsom is a growing US real estate market. The year-over-year growth in existing home sales for the metro was forecasted at 10.3%. The median sale price is expected to decline by 1.3% year-over-year.
17. Syracuse
Forecasted Growth in Home Sales: 3.4%
Forecasted Growth in Home Prices: 6.4%
Combined Home Sales and Price Growth: 9.8%
The year-over-year growth in existing home sales in Syracuse was forecasted at 3.4%. The median sale price is also expected to grow by 6.4% year-over-year. Therefore, the metro is a growing real estate market in the US.
16. Louisville/Jefferson County
Forecasted Growth in Home Sales: 9.1%
Forecasted Growth in Home Prices: 1.2%
Combined Home Sales and Price Growth: 10.2%
Louisville/Jefferson County is a growing US real estate market. The year-over-year growth in existing home sales for the metro was forecasted at 9.1%. The median sale price is also expected to grow by 1.2% year-over-year.
15. Harrisburg-Carlisle
Forecasted Growth in Home Sales: 5.6%
Forecasted Growth in Home Prices: 5.1%
Combined Home Sales and Price Growth: 10.6%
The year-over-year growth in existing home sales for Harrisburg-Carlisle was forecasted at 5.6%. The median sale price is also expected to grow by 5.1% year-over-year. Therefore, the metro is a growing real estate market in the US.
14. El Paso
Forecasted Growth in Home Sales: 6.3%
Forecasted Growth in Home Prices: 4.6%
Combined Home Sales and Price Growth: 10.9%
El Paso is another rapidly growing US housing market. The year-over-year growth in existing home sales for the metro was forecasted at 6.3%. The median sale price is also expected to grow by 4.6% year-over-year.
13. Scranton–Wilkes-Barre
Forecasted Growth in Home Sales: 5.5%
Forecasted Growth in Home Prices: 6.3%
Combined Home Sales and Price Growth: 11.8%
The year-over-year growth in existing home sales for Scranton–Wilkes-Barre was forecasted at 5.5%. The median sale price is also expected to grow by 6.3% year-over-year. Therefore, the metro is a growing real estate market in the US.
12. Buffalo-Cheektowaga
Forecasted Growth in Home Sales: 8.3%
Forecasted Growth in Home Prices: 3.9%
Combined Home Sales and Price Growth: 12.1%
Buffalo-Cheektowaga ranks as a rapidly growing US housing market. The year-over-year growth in existing home sales for the metro was forecasted at 8.3%. The median sale price is also expected to grow by 3.9% year-over-year.
11. Hartford-East Hartford-Middletown
Forecasted Growth in Home Sales: 3.1%
Forecasted Growth in Home Prices: 9.1%
Combined Home Sales and Price Growth: 12.2%
The year-over-year growth in existing home sales for Hartford-East Hartford-Middletown was forecasted at 3.1%. The median sale price is also expected to grow by 9.1% year-over-year. Hence, the metro is a growing real estate market in the US.
10. Los Angeles-Long Beach-Anaheim
Forecasted Growth in Home Sales: 9.2%
Forecasted Growth in Home Prices: 3.5%
Combined Home Sales and Price Growth: 12.7%
Los Angeles-Long Beach-Anaheim ranks as a rapidly growing US housing market. The year-over-year growth in existing home sales for the metro was forecasted at 9.2%. The median sale price is also expected to grow by 3.5% year-over-year.
9. Grand Rapids-Kentwood
Forecasted Growth in Home Sales: 6.1%
Forecasted Growth in Home Prices: 7.2%
Combined Home Sales and Price Growth: 13.3%
The year-over-year growth in existing home sales for Grand Rapids-Kentwood was forecasted at 6.1%. The median sale price is also expected to grow by 7.2% year-over-year. Hence, the metro is a growing real estate market in the US.
8. Worcester
Forecasted Growth in Home Sales: 9.1%
Forecasted Growth in Home Prices: 4.8%
Combined Home Sales and Price Growth: 13.9%
Worcester ranks as a rapidly growing US housing market. The year-over-year growth in existing home sales for the metro was forecasted at 9.1%. The median sale price is also expected to grow by 4.8% year-over-year.
7. Springfield
Forecasted Growth in Home Sales: 10.5%
Forecasted Growth in Home Prices: 4.2%
Combined Home Sales and Price Growth: 14.7%
The year-over-year growth in existing home sales for Springfield was forecasted at 10.5%. The median sale price is also expected to grow by 4.2% year-over-year. Hence, Springfield is a growing real estate market in the US.
6. Bakersfield
Forecasted Growth in Home Sales: 13.4%
Forecasted Growth in Home Prices: 2.3%
Combined Home Sales and Price Growth: 15.7%
Bakersfield ranks as a rapidly growing US housing market. The year-over-year growth in existing home sales for the metro was forecasted at 13.4%. The median sale price is also expected to grow by 2.3% year-over-year.
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Disclosure: None. 25 Fastest Growing Real Estate Markets in the US is originally published on Insider Monkey.