The Short Summary
The real estate markets across the country can be vastly different, and anyone wanting to purchase real estate investments in 2023 should be aware of the best real estate markets first, before they consider investing. We’ve put together a list of the top 10 real estate markets in the US, with relevant statistical information on each, for real estate investors and home buyers to make more informed decisions.
Some of the best real estate markets in 2023 are Tampa, FL, Raleigh, NC, and Pittsburgh, PA. These are bustling markets with a range of affordable properties. They also have strong job growth in the job market which means a lower unemployment rate, and they provide an attractive option for migration. A real estate investor should consider these attractive housing markets for their next investment.
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Top 10 Real Estate Markets In The US
Whether you’re buying a primary residence, or purchasing real estate investments, it’s important to know which real estate markets are performing well and offer the best value for money, as well as investment opportunities. As the US real estate markets begin to level out, 10 markets have emerged as the best for investing in real estate in 2023. Let’s take a look at the 10 best real estate markets in the US.
1. Tampa, Florida
Median Sales Price
$445,000
Days on Market
17 Days
Housing Affordability Index
95.6
Total Home Sales
671
Sales to List Price
98.1%
Home Price Increase (YoY)
3.5%
Home Sales Above List Price
24.4%
Unemployment Rate
3.1%
Tampa, situated along Florida‘s Gulf Coast, is renowned for its vibrant outdoor culture and stunning location. As Florida’s third-largest city, Tampa continues to expand and flourish and it’s no wonder this is one of the country’s best real estate markets. As such, the city was one of the most popular relocation destinations in 2022, however, this popularity has driven home prices up a notch.
Homes in Tampa typically sell for just under the listing price, as shown by the sale-to-list ratio of 98.1%. The city continues to attract people from all over the country, and offers a great standard of living, with attractive job growth and employment opportunities in the job market. By the end of 2023, the experts predict that the market in Tampa will lean more towards favoring buyers, so sellers will experience high levels of demand, however inventory remains enough.
2. Raleigh, NC
Median Sales Price
$425,000
Days on Market
36 Days
Housing Affordability Index
106.5
Total Home Sales
531
Sales to List Price
100.8%
Home Price Decrease (YoY)
2.1%
Home Sales Above List Price
43.3%
Unemployment Rate
3.3%
Raleigh is another one of the best real estate markets in the country, fueled by students, with a variety of property price points available in this diverse area. In June 2023, Raleigh experiences a seller’s market, which is characterized by a situation in which the demand from prospective buyers exceeds the currently available housing inventory.
The stats show that homes are generally selling for their asking prices, with 43.3% of homes even selling for higher than their list prices. The range of price points offered by sellers is a drawcard for buyers who can enter the real estate market in Raleigh in a variety of areas. Forecasts show that over the rest of 2023, Raleigh is expected to see a slight increase in home prices which would lead to the housing market experiencing a surge in demand as the market grows and job growth occurs.
3. Austin, Texas
Median Sales Price
$604,900
Days on Market
42 Days
Housing Affordability Index
93.8
Total Home Sales
1,019
Sales to List Price
97.6%
Home Price Decrease (YoY)
2.9%
Home Sales Above List Price
18.8%
Unemployment Rate
3.4%
The economic base of Austin increased significantly in 2022, with 13 company headquarters being set up in the city, and 8 more companies expanding here, leading to major job growth. This job growth was largely created by the variety of tech companies in the job market and the likes of John Deere and Wise. With the economic expansion, comes an increase in buying power for home buyers. Austin is also known as a city that welcomes innovation, which bodes well for the real estate market as it adapts to the changing economic environment.
Throughout the initial half of 2023, the strong housing market in the Austin area demonstrated resilience, even in the face of challenges posed by wider economic circumstances. The experts believe that Austin’s strong economy and expanding population will position it as a valuable long-term prospect for homebuyers. Additionally, the city boasts a varied economic landscape, rendering it more resilient in the face of potential economic disruptions.
4. Nashville, Tennessee
Median Sales Price
$447,910
Days on Market
39 Days
Housing Affordability Index
103.4
Total Home Sales
1,071
Sales to List Price
98.9%
Home Price Decrease (YoY)
3.7%
Home Sales Above List Price
24.5%
Unemployment Rate
3.1%
According to the U.S. News Housing Market Index, Nashville has the 12th strongest housing market in the country. While Nashville saw a decline in housing permits with rising interest rates which caused a drop in consumer demand and home prices, the city recovered swiftly over the first 3 months of 2023 and the future looks bright.
According to the Mortgage Bankers Association, applications to purchase a home in February 2023 were up 1.2% year-on-year and 4% compared with January. Nashville may have a bustling country music scene, but the real estate market is not too far off. The business climate in Nashville helps to keep the housing market afloat, even when the rest of the country is experiencing major declines. For real estate investors and home buyers, a growing market and robust economy are a recipe for real estate success.
5. Phoenix, Arizona
Median Sales Price
$440,000
Days on Market
38 Days
Housing Affordability Index
88.1
Total Home Sales
1,652
Sale to List Price
98.5%
Home Price Decrease (YoY)
4.3%
Home Sale Above List Price
25.1%
Unemployment Rate
4%
Home prices in Phoenix have increased by an astounding 30% over the last 12 months. This can be attributed to the increase in demand thanks to an influx of remote workers, and retirees who are looking for larger homes that are more affordable. According to Payscale, the cost of living in Phoenix is 5% below the national average, which makes this an attractive city for many people.
Phoenix has made it onto the list of best housing markets in the US based on the factors below, and this is propelled by an escalating influx of technology-related employment opportunities— the likes of corporate giants like Amazon, Uber, Shutterfly, and Yelp—amongst other situations that are reshaping Phoenix’s landscape.
6. Philadelphia, Pennsylvania
Median Sales Price
$270,000
Days on Market
40 Days
Housing Affordability Index
143.6
Total Home Sales
1,503
Sales to List Price
97.8%
Home Price Decrease (YoY)
5.9%
Home Sales Above List Price
25.5%
Unemployment Rate
4%
Price trends and the time that properties spend on the market reflect intense competition in Philadelphia, Pennsylvania due to limited housing availability. In the Philadelphia metropolitan area, the supply of homes for sale witnessed growth during the previous autumn and the beginning of spring. Nevertheless, the last two months have seen a renewed decrease in inventory, creating a scenario where buyers confront a competitive and fast-paced real estate market.
Although the inventory has been lower, the demand in Philadelphia has remained high and the real estate market is just as fast-paced as it was during the height of the pandemic. The experts anticipate an easing of interest rates over the rest of 2023, which may prompt an increase in fresh property listings from homeowners who’ve been anchored by exceedingly low mortgages. This creates new opportunities for those looking for real estate investments in Philadelphia.
7. Miami, Florida
Median Sales Price
$580,000
Days on Market
67 Days
Housing Affordability Index
66.3
Total Home Sales
734
Sale to List Price
96.1%
Home Price Increase (YoY)
7.4%
Homes Sales Above List Price
13.5%
Unemployment Rate
2.1%
The Miami housing market offers investors and buyers a desirable location for commercial and residential real estate investments. The Miami housing market may continue to grow over the next 12 months, as home prices are not likely to cool off anytime soon. Demand is declining slightly, as higher mortgage rates continue to dominate the national market, however the large inventory isn’t enough to cover the demand. Which means that home prices could increase by another 2% by the end of 2023.
Foreclosures in Miami are rising, which bodes well for investors who may be looking for distressed properties to invest in. The Miami metropolitan area is the 7th largest in the US, and single-family homes are experiencing a large surge this year, which sees the city’s real estate market showing resilience to the current interest rate turmoil. This is a great sign for the future of the Miami housing market over 2023 and beyond.
8. Cleveland, Ohio
Median Sales Price
$118,950
Days on Market
29 Days
Housing Affordability Index
185.0
Total Home Sales
424
Sale to List Price
98.3%
Home Price Decrease (YoY)
6.4%
Home Sales Above List Price
38.7%
Unemployment Rate
3.7%
Cleveland is one of the most popular cities in the US for those who want to live an outdoorsy life. This housing market presents a dynamic terrain characterized by a blend of affordability and diversity. Cleveland is known for being one of the best long-term real estate markets in the country, which means that for home buyers or investors, this is a great place to buy and hold property.
The robust Cleveland housing market continues to favor sellers, and this is driven by a consistent gap between supply and demand. Over the past decade, Cleveland’s real estate has experienced a cumulative appreciation of 75.58%, which means that it falls within the upper 50% across the nation. This translates to an average annual appreciation rate of 5.79% for houses in Cleveland.
9. Jacksonville, Florida
Median Sales Price
$302,000
Days on Market
36 Days
Housing Affordability Index
101.6
Total Home Sales
1,402
Sale to List Price
97.9%
Home Price Decrease (YoY)
4.8%
Home Sales Above List Price
20.5%
Unemployment Rate
3.3%
Jacksonville is one of the hottest housing markets in the county, according to the experts. It’s an ideal market for real estate investors, particularly turnkey investors. Boasting around 270 days of annual sunshine, Jacksonville holds the distinction of being Florida’s most youthful city. This demographic factor likely contributes to the projected notable surge in the count of households under owner occupancy within Jacksonville.
Throughout the last year, there has been a gradual yet optimistic increase in the housing market, reflecting a steady rise in property values. This consistent appreciation in home worth is promising for both homeowners and investors, showcasing the enduring strength of the local real estate market.
10. Pittsburgh, Pennsylvania
Median Sales Price
$275,000
Days on Market
54 Days
Housing Affordability Index
70.1
Total Home Sales
533
Sale to List Price
98.4%
Home Price Increase (YoY)
1.9%
Home Sales Above List Price
35.1%
Unemployment Rate
3.8%
Pittsburgh is fast becoming one of the most bustling housing markets thanks to its consistent affordability. The city is quickly establishing itself as a technology hub, with a vast array of new employment opportunities in the job market which promotes job growth, and increases buying power for those who live in the city or are investing there.
In 2022, according to Zillow, individuals purchasing property in Pittsburgh could anticipate allocating roughly 25% of their income towards monthly mortgage payments. This falls comfortably below the 30% benchmark that signifies the onset of potential financial strain. Pittsburgh stands out with one of the United States’ most balanced markets, particularly favoring middle-income purchasers. The availability of affordable properties sits at 52%, closely aligned with the 53% threshold indicative of a balanced market.
5 Housing Markets To Watch
Along with the housing markets mentioned above, there are 5 areas that stand out as up and coming markets. This is based on various factors such as local economy performance, median home sale price, affordability, and more.
1. Las Vegas, NV
Median Sales Price
$412,250
Days on Market
38 Days
Housing Affordability Index
75.6
Total Home Sales
1,146
Sale to List Price
98.5%
Home Price Decrease (YoY)
5.2%
Home Sales Above List Price
24.8%
Unemployment Rate
6.3%
Las Vegas tops Redfin’s list for the most popular destination for relocating homebuyers. The city offers buyers a cheaper alternative for real estate than other big cities in the state, such as LA or San Francisco. The median sale price of homes in Las Vegas is $412,250 which is half the median sale price of homes in LA and one third of the median sale price of homes in San Francisco, in comparison.
The net inflow of people into Las Vegas in the second quarter of 2023 was 5,700, and these were largely people moving from LA. Along with the large influx of buyers to this city and the more affordable home prices, Redfin data shows that 23.3% of listings had a price drop in May 2023, or a 1.6% decrease year over year. Which means that the Las Vegas housing market is cooling faster than many others, which opens the door for first-time buyers or investors to purchase homes.
2. Charlotte, NC
Median Sales Price
$425,000
Days on Market
33 Days
Housing Affordability Index
105.4
Total Home Sales
1,240
Sale to List Price
100.4%
Home Price Increase (YoY)
2.2%
Home Sales Above List Price
42%
Unemployment Rate
3.5%
Over the recent years, there has been a substantial rise in demand within the Charlotte housing market, driven by a flourishing economy, job growth, and an appealing standard of living. Charlotte has swiftly become one of the fastest-growing urban centers nationwide, magnetizing both young professionals and families, with a variety of neighborhoods, top-tier educational institutions, and lively cultural environment.
As such, the real estate landscape in Charlotte has remained competitive, marked by constrained inventory levels and increasing residential property values. An 8.2% increase is expected to occur in the Charlotte housing market over the next year. Which shows the significant growth that is expected, which provides opportunities for buyers and sellers alike.
3. Atlanta, GA
Median Sales Price
$439,650
Days on Market
28 Days
Housing Affordability Index
117.4
Total Home Sales
821
Sale to List Price
99.0%
Home Price Increase (YoY)
5.9%
Home Sales Above List Price
28.6%
Unemployment Rate
4.1%
Atlanta experienced a decrease in home sales in May 2023, which indicated a possible market slowdown. However, since then, the city has experienced a significant rise in home prices and housing inventory, which has given buyers more options and created a competitive market for sellers.
With companies like Apple, Microsoft and Visa opening offices in Atlanta, the city has a robust economy and has experienced a large amount of migration from other regions across the US. This bolsters the real estate market even more, by creating a huge demand and therefore a seller’s market. For real estate investors, this poses a great opportunity, along with the fact that about 50% of all households in Atlanta are occupied by renters.
4. Dallas, TX
Median Sales Price
$454,525
Days on Market
23 Days
Housing Affordability Index
116.3
Total Home Sales
1,100
Sale to List Price
98.9%
Home Price Increase (YoY)
0.8%
Home Sales Above List Price
33.3%
Unemployment Rate
4%
Despite being one of the most populated cities in the United States, Dallas boasts a cost of living merely 2% higher than the national average, as per Census data. This exceptional affordability sets it apart as a budget-friendly choice for a metropolitan center of its size. This creates a plethora of opportunities for homebuyers and real estate investors to get into the market.
Currently, there is a high demand in this strong housing market, and a low inventory. Which bodes well for sellers. Along with this, Dallas has no state income tax, which is a major drawcard for buyers and real estate investors. While home prices may be higher than the national average, they’re not rising as fast as many other cities, and the cooldown should continue for a while. Although, the experts predict that the Dallas housing market will remain robust.
5. Greenville, SC
Median Sales Price
$430,000
Days on Market
42 Days
Housing Affordability Index
110.1
Total Home Sales
155
Sale to List Price
100.1%
Home Price Increase (YoY)
13.2%
Home Sales Above List Price
34.8%
Unemployment Rate
3.2%
The local economic outlook in Greenville remains strong and is predicted to continue supporting the real estate market going forward. The stats show that homes in Greenville are selling for their asking price, which is a great sign for those who are selling. Currently, the area has a balanced market, where sellers and buyers are equally benefited, as supply and demand are balancing each other out.
There has been a large increase in new construction in Greenville, and this coupled with the notoriously affordable home prices, means that the area is primed for real estate purchases. Homeowners in Greenville only spend 10.4% of their income on housing, while the national average is over 16%. It’s likely that Greenville will see an influx of younger buyers, while interest rates remain low.
5 Housing Markets To Avoid
While there are many markets that are offering home buyers and real estate investors great opportunities, there are also some markets that aren’t likely to produce good real estate deals.
1. Los Angeles, CA
Median Sales Price
$975,000
Days on Market
38 Days
Housing Affordability Index
43.1
Total Home Sales
1,740
Sale to List Price
101.4%
Home Price Decrease (YoY)
7.1%
Home Sales Above List Price
49.9%
Unemployment Rate
5.5%
The median home sale price shown below is one of the easiest ways to see why LA has made it onto our list of housing markets to avoid. The extremely high home prices in this city can lead to many buyers being excluded from the market due to the lack of affordable property options.
Add to this, the fact that the unemployment rate is higher than many other cities, as well as the national average in the US, with less job growth, as well as the fact that there are limited new listings and high interest rates, and it’s clear to see that this is not a hot housing market that investors should consider right now.
2. New York, NY
Median Sales Price
$616,000
Days on Market
20 Days
Housing Affordability Index
72.4
Total Home Sales
39
Sale to List Price
103%
Home Price Decrease (YoY)
6.9%
Home Sales Above List Price
71.8%
Unemployment Rate
5.4%
Housing inventory in New York recently experience a noteworthy decline which means that the level of competition in the market has been driven up significantly. Particularly in comparison to the national average. This, along with factors like the high unemployment rate, low job growth, and higher cost of renting (compared to the national average), makes New York a less desirable market for real estate investors.
The experts forecast the rental market to cool even further, and the time it takes for homes to go off the market is relatively fast, which makes this a very competitive market for investors.
3. Sacramento, CA
Median Sales Price
$475,000
Days on Market
8 Days
Housing Affordability Index
89.0
Total Home Sales
420
Sale to List Price
101.6%
Home Price Decrease (YoY)
9.52%
Home Sales Above List Price
60.7%
Unemployment Rate
4.5%
Home values are falling significantly in Sacramento, with a 9.52% decline in home prices over the last year. This, along with the decline in sales figures midway through the year indicates a noteworthy cooling of the housing market which could be to the detriment of those wanting to invest in real estate here. Affordability in Sacramento has been heavily impacted by the rise in mortgage rates which have become prohibitively high for many.
4. Montgomery, AL
Median Sales Price
$170,000
Days on Market
46 Days
Housing Affordability Index
150.8
Total Home Sales
256
Sale to List Price
96.1%
Home Price Decrease (YoY)
6.5%
Home Sales Above List Price
26.6%
Unemployment Rate
3%
Ranked at the bottom for growth, Montgomery, Alabama, has seen a mere 59.6% increase in home prices since 1998. With its population dwindling and almost a quarter of its residents grappling with poverty, based on US Census data, the city faces significant challenges. These challenges don’t bode well for those who are investing in real estate in this city.
5. San Francisco, CA
Median Sales Price
$1,405,000
Days on Market
26 Days
Housing Affordability Index
47.4
Total Home Sales
429
Sale to List Price
104.2%
Home Price Decrease (YoY)
8.8%
Home Sales Above List Price
53.1%
Unemployment Rate
3.2%
Data from the National Association of Realtors has put San Francisco at the top of the list for fastest dropping home values in the country. Not only this, the Bay Area’s real estate market has an extremely high median home sale price, in comparison to other cities and the national average, which can lead to many buyers being iced out of the market. Uncertainty about the interest rate situation isn’t helping with the situation here, and this makes San Francisco one of the worst markets for a real estate investor in 2023.
