10 Fastest Growing Housing Markets of the Previous Year

CEO Khai Intela
The real estate market in the United States is constantly evolving, with housing values fluctuating across different metropolitan areas. Although the overall national home values have experienced a slight slowdown in growth, there are still...

The real estate market in the United States is constantly evolving, with housing values fluctuating across different metropolitan areas. Although the overall national home values have experienced a slight slowdown in growth, there are still certain housing markets that have seen impressive increases in home prices. These markets present great opportunities for both buyers and sellers alike.

The National Picture: Price Cuts and Longer Selling Times

While the housing market on a national scale has witnessed a cooldown in price growth, there are still localized trends that are worth noting. In 32 out of the nation's 50 largest markets, home values have continued to rise, providing promising signs in the market. However, certain key indicators such as price cuts, the pace of sales, and homes selling over listing price have been affected.

  • Price Cuts: Since June, approximately 23% of listings have experienced price cuts.
  • Homes Selling over Listing Price: The number of homes selling over listing price has decreased slightly.
  • Pace of Sales: The pace of sales has slowed down, giving home buyers more time to make informed decisions.
  • New Listings for Sale: Interestingly, the number of newly listed homes for sale has increased.

Top 10 Housing Markets in 2023: Fastest Growing Housing Markets

Zillow has conducted an analysis to identify the top 10 housing markets in 2023 based on changes in home prices from August 2022 to August 2023. These markets have experienced substantial increases in home values, making them highly attractive for both buyers and sellers.

Fastest Growing Housing Markets Source: Zillow

1. Hartford, CT: Fastest Growing Housing Market

Hartford, Connecticut, takes the lead as the fastest growing housing market in 2023. With a typical home value of $343,034, Hartford has witnessed an impressive 9.90% increase compared to the previous year. This surge in home value can be attributed to various factors that contribute to the flourishing real estate market in Hartford.

One of the key drivers of the city's growth is its substantial economic development. The city has experienced significant job market growth, attracting businesses and professionals seeking promising career prospects. Additionally, Hartford has invested in improving its infrastructure, making it an appealing choice for potential homebuyers. The presence of cultural and recreational attractions further enhances the desirability of the housing market in Hartford.

2. Milwaukee, WI: An Evolving Real Estate Landscape

Milwaukee, Wisconsin, ranks second in the 2023 housing market, showcasing substantial growth. With a typical home value of $334,446, Milwaukee has experienced an impressive 8.10% increase compared to the previous year. The city has seen significant economic development, urban revitalization, and a burgeoning job market, all of which have positively impacted the housing sector.

The steady economic growth in Milwaukee has attracted new businesses and investments, leading to an increase in job opportunities. The city's urban areas have also undergone revitalization, making various neighborhoods more appealing for potential homebuyers. The cultural scene and diverse range of recreational activities add to the overall appeal of Milwaukee as a housing market.

3. Virginia Beach, VA: A Coastal Housing Hub

Virginia Beach, Virginia, emerges as the third fastest growing housing market in 2023. With a typical home value of $337,884, Virginia Beach has seen a notable 5.70% increase compared to the previous year. This increase in home value can be attributed to the city's beautiful coastal location, economic opportunities, and a variety of amenities.

The coastal appeal of Virginia Beach, with its ocean views and water-related activities, attracts homebuyers looking for a beachside lifestyle. The city's diverse and growing economy provides a range of job opportunities, and its amenities contribute to the overall quality of life for residents.

4. Philadelphia, PA: A Thriving Urban Market

Philadelphia, Pennsylvania, ranks fourth in the 2023 housing market, showcasing notable growth. With a typical home value of $349,292, Philadelphia has experienced a significant 5.50% increase compared to the previous year. The city's historical significance, economic growth, and vibrant urban lifestyle have played pivotal roles in boosting the housing sector.

Philadelphia's rich history and cultural heritage make it an attractive destination for a diverse range of individuals and families. The city's economic growth in various sectors, such as healthcare, education, and technology, has led to increased job opportunities and a higher demand for housing. Philadelphia's diverse neighborhoods, restaurants, shopping districts, and entertainment options contribute to its appeal as a housing market.

5. Providence, RI: A Vibrant Housing Market

Providence, Rhode Island, positions itself as the fifth fastest growing housing market in 2023. With a typical home value of $457,388, Providence has seen a commendable 5.30% increase compared to the previous year. The city's blend of culture, education, and economic opportunities make it an enticing choice for residents and investors.

Providence's cultural diversity, historical landmarks, and artistic heritage contribute to its appeal as a housing market. The city's growing economy, particularly in the education and healthcare sectors, attracts professionals and students, leading to increased demand for housing. Providence's accessible amenities, parks, and recreational facilities enhance the quality of life for its residents.

6. Miami, FL: A Sizzling Real Estate Market

Miami, Florida, secures its position as a significant contender in the 2023 housing market, drawing the attention of potential homebuyers and sellers. With a typical home value of $469,757, Miami showcases a solid 5.00% increase compared to the previous year, placing it at number six on the list of top housing markets.

Miami's vibrant culture, attractive climate, and economic opportunities make it a highly sought-after destination for residents and investors. The city's dynamic cultural scene, beautiful beaches, and rich culinary experiences significantly contribute to its desirability. Miami's robust economy, with a focus on finance, trade, tourism, and real estate, attracts professionals and entrepreneurs, further driving housing demand.

7. Cincinnati, OH: A Rising Housing Market

Cincinnati, Ohio, is making a mark in the 2023 housing market, attracting potential homebuyers and sellers alike. With a typical home value of $275,763, Cincinnati showcases a notable 5.00% increase compared to the previous year, placing it at number seven on the list of top housing markets.

Cincinnati's affordability, strong job market, and appealing quality of life make it an enticing destination for residents and investors. The city's lower cost of living compared to many other metropolitan areas attracts homebuyers seeking affordability without compromising on amenities. Cincinnati's growth in various industries, including manufacturing and healthcare, generates job opportunities and influences housing demand.

8. Cleveland, OH: A Steady Housing Market

Cleveland, Ohio, stands as a notable contender in the 2023 housing market, capturing the attention of potential homebuyers and sellers. With a typical home value of $220,483, Cleveland reflects a respectable 4.60% increase compared to the previous year, placing it at number eight on the list of top housing markets.

Cleveland's affordability, improving economy, and diverse cultural scene make it an appealing choice for residents and investors. The city's lower cost of living and affordable housing options attract first-time homebuyers and those seeking affordable living. Cleveland's steady upliftment in its economy, particularly in healthcare, manufacturing, and technology, stimulates housing demand and influences home values.

9. St. Louis, MO: A Resilient Housing Market

St. Louis, Missouri, has established itself as a noteworthy contender in the 2023 housing market, drawing the interest of potential homebuyers and sellers. With a typical home value of $244,952, St. Louis demonstrates a commendable 4.60% increase compared to the previous year, placing it at number nine on the list of top housing markets.

St. Louis's affordability, diverse job market, and cultural offerings make it an appealing choice for residents and investors. The city's lower cost of living and affordable housing options attract individuals looking for affordable living without compromising on quality. St. Louis's diverse job market and educational institutions generate increased demand for housing.

10. Boston, MA: A Flourishing Housing Market

Boston, Massachusetts, stands as a prominent player in the 2023 housing market, attracting potential homebuyers and sellers. With a typical home value of $664,528, Boston illustrates a commendable 4.50% increase compared to the previous year, placing it at number ten on the list of top housing markets.

Boston's economic strength, educational institutions, and cultural attractions make it a highly sought-after destination. The city's strong and diverse economy, with key sectors such as finance, education, technology, and healthcare, attracts professionals and students. Boston's cultural and historical significance, along with its world-class universities, contribute to the steady demand for housing.

Top 5 Metros with the Biggest Monthly Increase in Home Prices

Zillow's data also highlights the top 5 metros that witnessed the largest monthly increase in home values during this period:

  • Hartford, CT: 1.3% increase
  • Buffalo, NY: 1.0% increase
  • San Diego, CA: 0.9% increase
  • Cleveland, OH: 0.7% increase
  • Providence, RI: 0.7% increase

Factors Influencing Home Prices in Local Markets

The variations in home appreciation across local markets are influenced by several factors affecting supply and buyer demand. These factors include:

  1. Economic Conditions and Job Opportunities: Metros with strong economic growth and a thriving job market tend to attract more people, leading to increased demand for housing and subsequently higher home values.
  2. Infrastructure Development and Amenities: Well-developed infrastructure, efficient transportation systems, quality schools, healthcare facilities, and recreational areas contribute to higher demand and willingness to pay a premium for homes in certain metros.
  3. Demographic Trends: Population growth, aging populations, and migration patterns significantly influence housing demand and, consequently, home prices. Metros with significant population growth or younger demographics tend to experience higher rates of home value appreciation.

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