Housing Market 2024: Prediction of the Hottest Cities in the US

Housing Market 2024

This year witnessed a decline in home sales due to soaring housing prices and mortgage rates. However, a promising 2024 rebound is forecasted in select Northeast, Midwest, and Southern California markets, with smaller, affordable alternatives gaining traction.

1. Toledo, OH

When most folks think about America’s top real estate markets, Toledo might not be their first pick. The Rust Belt city, about an hour southwest of Detroit on the banks of Lake Erie, has seen its share of troubles over the past few decades. However, the Toledo housing market has remained largely balanced over the past few crazy years.

Pros and Cons

Pros	Cons
Affordable median home list price.	Smaller city may have limited job opportunities.
Forecasted significant home sales price and sales growth.

2. Oxnard, CA

About an hour north of Los Angeles on the coast is Oxnard, an agricultural area known for its picturesque beaches, which include the communities of Thousand Oaks and Ventura. The area is a cheaper alternative to Los Angeles, where homes have a $1.15 million median price tag—but that gap is closing quickly.

Pros and Cons:

Pros	Cons
Coastal location with picturesque beaches.	High median home list price may limit affordability.
Forecasted substantial home sales growth.	Rapidly closing gap with Los Angeles prices.

3. Rochester, NY

Rochester has emerged as a real estate destination thanks to the area’s low home prices and scenic location on Lake Ontario, upstate in New York on the Canadian border. The metro has become a stalwart of the Realtor.com hottest markets list since 2022.

Pros and Cons:

Pros	Cons
Low median home list price.	Slower forecasted sales growth compared to other cities.
Scenic location on Lake Ontario.

4. San Diego, CA

The inclusion of San Diego on this list might be a head-scratcher. The desirable Southern California city, close to the U.S.-Mexico border, is renowned for its warm weather, miles of beautiful beaches, and the San Diego Zoo.

Pros and Cons:

Pros	Cons
Desirable Southern California city with warm weather.	Affordability challenges due to high median home list price.
Forecasted steady home sales growth.

5. Riverside, CA

Riverside, an area known for its citrus groves about an hour inland from Los Angeles, continues to attract homebuyers from pricier parts of the state. But there is little for them to purchase.

Pros and Cons:

Pros	Cons
Attracts homebuyers from pricier parts of the state.	Limited inventory due to fewer properties on the market.
Forecasted significant home sales growth.

6. Bakersfield, CA

Bakersfield is another agricultural area that’s been catching the interest of Los Angelenos as well as remote workers seeking more affordable real estate. The city is inland, about two hours north of the larger city.

Pros and Cons:

Pros	Cons
Known for affordability, attracting remote workers.	Affected by fluctuations in interest rates.
Forecasted modest home sales growth.

7. Springfield, MA

Springfield might be an unusual pick for a national top markets list. But this city, the birthplace of beloved author Dr. Seuss, is luring homebuyers with its affordable home prices and low unemployment. The metro is about 90 minutes west of Boston on the Connecticut River, with home prices less than half of the larger metro’s median of $837,000, according to Realtor.com list price data in October.

Pros and Cons:

Pros	Cons
Affordable home prices and low unemployment.	Limited recognition on a national scale.
Forecasted moderate home sales growth.

8. Worcester, MA

Similar to Springfield, Worcester has long been a cheaper alternative to Boston. The larger city is only about an hour’s drive to the east. However, the additional demand for homes in the Worcester area has pushed median home list prices up 42% in just four years, according to Realtor.com October data.

Pros and Cons:

Pros	Cons
Cheaper alternative to Boston with steady growth.	Rising median home list prices may impact affordability.
Forecasted steady home sales growth.

9. Grand Rapids, MI

Known for its brewery scene and role in producing office furniture (something the city touts), Grand Rapids is another city that’s seen high home price growth during the COVID-19 pandemic. And prices in Grand Rapids, just east of Lake Michigan, keep notching up.

Pros and Cons:

Pros	Cons
Known for brewery scene and high home price growth.	Lack of available homes limiting market activity.
Forecasted steady home sales growth.

10. Los Angeles, CA

The Los Angeles housing market took a beating as mortgage rates spiked. Prices slipped or grew very modestly, homes took longer to sell, and many sellers had to cut prices. However, the market has been rebounding in recent months.

Pros and Cons:

Pros	Cons
Rebounding market after a challenging period.	High median home list price and limited inventory.
Forecasted steady home sales growth.

In conclusion, these cities offer diverse opportunities and challenges for potential homebuyers. It’s essential to consider personal preferences, budget, and long-term goals when navigating the real estate market. Keep an eye on these emerging markets as they may hold the key to your next real estate success.